Wine prices in restaurants are too high
So much for the decisions that the entire supply chain must take to bring production and supply back into balance with the market. Then there are the measures to be taken in the market itself. “I find that all too often,” continues the UIV president, “ wine prices in restaurants are too high. I’m not saying that restaurateurs are making huge profits. They have taxes, safety costs and various regulatory obligations to deal with, but ultimately these costs are passed on to the products, and customers end up consuming less. I have a feeling it will be a bit like the car market. Until a few years ago, you couldn’t find a car for under 20,000 euros. Then the sector went into crisis and now there are cars available at lower prices. Something similar will happen with wine too.” But this is not the solution to the issue of excessive mark-ups. “No, it isn’t,” he continues. “In fact, if there’s any excessive pressure from restaurateurs, it’s to drive prices down. I’ve had the owner of a five-star hotel ask me to supply him with a wine for less than 4 euros. I let that customer go without a second thought.”
The export front
There is also much to be done on the markets front. “We have been very pleased with the trade agreements signed by the EU,” adds the president of the Italian Wine Union. Firstly, we have high hopes for the agreement with Mercosur, which, even though tariffs will only be phased out in eight years’ time, has in fact already yielded interesting results. Another aspect is the EU market, which has seen a 31 per cent increase in Italian exports over the last six years, outperforming the non-EU average. Brussels supports us in promoting wine outside Europe but not within the EU markets. This was only possible for a short period. We hope this opportunity can be restored because Europe remains a safe haven for Italian wineries.”
New consumer trends to capitalise on
And finally, the issue of new consumer trends. “That said,” concludes Frescobaldi, “whilst on the subject of the anti-alcohol campaign we hope that the distinction between abuse and moderate consumption – which protects wine in general – will be reinforced, the ability of businesses to identify new trends will be decisive. I have a restaurant in the province of Florence with an up-and-coming chef who used to serve sophisticated dishes that were not only delicious but also a feast for the eyes. In that restaurant, the average price per bottle was 60 euros. Suddenly, the chef decided to make a change and left. The restaurant, which was on the verge of earning a Michelin star, has become a venue specialising solely in aperitifs: wine and locally sourced dishes. The average price per bottle has dropped to 40 euros, but it’s always full and we’re turning over much more.”
Consumption is falling, but the number of consumers is rising. This apparent contradiction, which emerges from the figures presented by UIV during its general meeting, holds one of the keys to understanding the future of Italian wine. For whilst domestic consumption has now reached 22 million hectolitres, the number of people who have drunk wine at least once has risen in parallel. There are now almost 30 million wine consumers in Italia, accounting for 55 per cent of the population and an increase of 600,000 compared with 15 years ago.
How is this possible? Because the quantities consumed are falling. In particular, daily consumption is falling ever further: today, 6 out of 10 consumers drink occasionally and 4 drink daily, whereas up to twenty years ago this ratio was the reverse, with 6 to 4 in favour of daily drinkers. These figures can be explained precisely by the shift currently taking place in drinking habits. People are drinking less and less with meals and at the dinner table, and increasingly on occasional occasions such as aperitifs.
