Wine Industry Squeezed as Prices Fall and Inflation Rises

Italian wine producers are facing a squeeze due to falling retail prices and rising inflation. According to data from Istat, consumer wine prices in Italy dropped by 2.3% in September compared to the same period last year, while the broader inflation rate increased by 4.2%. The Italian Wine Union (UIV) said that this has resulted in a widening gap between production costs and retail prices.

The UIV pointed out that wineries are still facing increasing costs for electricity, gas, transport, logistics, oenological products, packaging, and other materials. Despite the price cuts, wine sales by volume have not increased, indicating that lower shelf prices have not yet led to a surge in demand.

Lamberto Frescobaldi, president of UIV, emphasized the need for public support from both the Italian government and the European Union. He called for structural measures on energy costs, stronger guarantees to make credit easier to obtain, and tax tools that encourage investment in energy efficiency and lower production costs.