Some 63.5% of companies operating in the Italian wine sector expect sales to fall this year, compared to 2019, with more than two-fifths (41.2%) expecting sales to drop by 10% or more, according to a Mediobanca study.
The study found that there is slightly less pessimism among wine cooperatives, generally more linked to large-scale distribution, and sparkling wine producers.
The former expects to be less affected by the drop in consumption in restaurants and public places in general, while the latter’s sales are largely seasonal.
Taking into account domestic sales and exports, potential total losses in the wine sector could be around €2 billion, equally distributed between domestic sales and a reduction in exports.
This means that the drop in turnover, compared to the previous year, could be somewhere between 20% and 25% this year.
This compares to a year-on-year increase of 1.1% last year.
The larger players in the Italian wine sector saw higher growth in 2019, the study found.
Businesses posting a turnover of over €60 million registered an increase in sales of 2.2%.
In terms of wine categories, sparkling wines saw a marginal decrease in sales in 2019 (-0.2%), while non-sparkling wines grew by 1.5%. Exports were key for both segments (+3.2% for sparkling wines, +4.6% for the others), while domestic sales declined (-2.4% for the former, -1.9% for the latter).
Mediobanca’s study took into account 215 wine companies, with a 2018 turnover in excess of €20 million and overall revenues of €9.1 billion.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine