Wine to Italy

(Last updated: 26 May 2008)

Trends and opportunities

The market

Regardless of Italy being one of the world’s largest producers and exporters of wine, its wine production and consumption has been in decline for some decades due to the introduction of the Euro and of changing lifestyles. Consumers are drinking wine at lunch with less frequency, and in general prefer to consume small quantities of good quality wine.

Italy has a strong and mature wine culture stemming from its long history of winemaking. Table wine has a significant share of Italian wine market. Quality is an important factor for Italian consumers, but they are also becoming increasingly price conscious.

The level of imported wine has, however, been increasing. The Italian wine market is estimated at 2.6 billion litres per year, of which 10.6 per cent is imported. The per capita consumption is about 46.5 litres per year, the second highest in the world. Italian consumers are regarded by the industry as extremely loyal to domestic products, and rarely try New World wines, in part because they are not readily available. However, the number of references offered by supermarkets and hypermarkets is increasing.

Australian wine holds a certain affinity with Italian consumers stemming from close migratory links. Australian exports of wine to Italy have increased from A$1,411 million in 2004 to A$1,499 million in 2005 (+6,24 per cent). Estimates for 2009, are 2,414 million litres, almost worth €12 billion. Nevertheless, the Italian market is still a small market for Australian wine.

The Italian wine sector is extremely fragmented, with a limited number of leading players accounting for just over 10 per cent of total production. Among the leading producers and players both nationally and internationally are Caviro – main brands are Castellino and Tavernello, both packaged in casks. Cantina La Vis founded in 1858, and developed into a cooperative in 1948. It currently numbers around 1,300 producers, with an area of approximately 1,320ha, followed by Cavit representing over 5,400 associate vine growers in 13 wine cooperatives, and accounts for 70 per cent of wine production in Trentino (approximately 7,000ha).

Italians have always enjoyed drinking wine with their meals whether at home or dining out. They have been drinking better quality wine but on fewer occasions. Red wine is the preferred beverage in Italy with a 50 per cent share of the still wine market. White wine accounts for 42 per cent of the market and rosé accounts for six per cent (Source: Euromonitor International 2006).

Competitive environment

The Italian import market is dominated by Old World countries. Most of the imports are from neighbouring European countries: Spain, Portugal and France. The US is the only New World exporter with a meaningful share of the market.

Australia is the 10th largest exporter to Italy but holds a miniscule share of the market.

Marketing your products and services

Market entry

Penetrating the Italian market can be challenging for a number of reasons. Due to high competition, samples may not get tasted for months. Responses, either positive or negative – may not be forthcoming either! It is deemed expensive to send samples, visit the market, and participate in exhibitions/events/tastings. 

Australia is only one of many exporting countries into a world class producer market.  All these factors can be daunting so be prepared. As with many markets in Europe, belief in your product, commitment and persistence are the key.

Set yourself small goals to achieve in this market as sales may not exceed a few pallets per year initially. You may need to support your distributor with extra incentives in addition to standard assistance provided in other markets in order to maintain or increase sales.

Austrade Milan assists Australian wine exporting companies in the development of an appropriate Italian market entry strategy and offers a range of tailored market entry and expansion services including:

• Market overview: Italian wine market information, the competitive environment, regulatory issues, pricing and trend analysis, and the Mini Wine Exporter's Guide to the Italian Market which includes tips on how to be ready for this highly sophisticated and competitive country.
• Partner search and qualification: Identification and short-listing of qualified importers, or other partners according to needs.
• Organisation of wine tastings – either individual or group events.
• Visit programs: Arrangement of appointments with selected importers and accompaniment to meetings if required.
• Wine website packages: Austrade Posts in the EMEA region have launched Australian wine websites in local languages (Italian – www.vinoaustraliano.it).  Various packages are available for promotion of your wines.  Please contact Austrade Milan if you are interested in being part of this initiative.
• Securing sustainable business: Assistance to you and your Italian importer/distributor to expand your sales base through in-market promotional activities.

Additional information on these services is available upon request. All services are offered on a fee for service basis in accordance with Austrade’s client service policy.

Distribution channels

On-trade or Ho.Re.Ca. (hotels, restaurants, cafés)

The on-trade is where wine is bought by the glass or bottle and is drunk on the premises (ie. normally with food). Pubs and wine bars are introducing more wines from new producing countries, and still hold potential for Australian wine. Imported premium wines are sold through specialist wine shops and top restaurants. However, restaurants do not reflect the consumer’s 'at home preferences'. Almost all Italian restaurants still source 90 per cent of their list from Italy.

Off-trade

Off-trade means that the wine is purchased and consumed off-site (ie. at home). Direct sales represent the largest channel for off-trade sales. Most of the wine is distributed through supermarkets and hypermarkets. The large purchasing power of these channels invokes a high level of price-competition making wine less expensive at these stores. It is now also possible to see imported mid-range wines on display in the major supermarket chains. The off-trade includes supermarkets with the leading players being Esselunga, Coop, Carrefour and Conad. In 2005, off-trade accounted for 60 per cent of sales. Lately, supermarkets have begun introducing their 'own label' wines.

It is highly recommended to use a freight forwarder that is able to ensure the door-to-door delivery of your wines. Please ensure that you have supplied all the necessary documentation to accompany your shipment to ensure that it doesn’t get 'stuck' in customs.

Links and industry contacts

Wine-related resources

Federvini – www.federvini.it
Unione Italiana Vini – www.uiv.it
Vinitaly – www.vintaly.com Major wine trade fair held annually in Verona (2-6 April 2009)
Salone del Vino – www.salonedelvino.it (Torino, 24-27 October 2009)
Salone del Gusto – www.salonedelgusto.it (Torino, 23-27 October 2008)