Any way you slice it, Italy is the region to beat in the United States when it comes to imported wine. While the segment’s volume is down, with Italian table wine having decreased 9.28 percent from 207.86 million liters in the first 11 months of 2007 to 188.57 million liters over that same period in 2008, according to the U.S. Department of Commerce, Italian wines remain the most highly consumed imported wine in the United States.
The region’s closest import competitors, from a consumption perspective, are Australia and France, which trail at No. 2 and No. 3, respectively. In total sales of imported table wine, Italian wine also leads the pack, having increased by 1.52 percent to $1.08 billion in the first 11 months of 2008 from $1.06 billion over that same period the previous year, according to the U.S. Department of Commerce. In fact, the region comprises 30 percent of the total imported table wine sold in the United States.
It is not just the wine itself though that keeps these bottlings at the top of consumers’ minds, but also the Italian culture that surrounds them. For Italian restaurants have become an integral part of the culinary fabric of the American dining experience, and Italian wines have enjoyed a nice support system from this position. Further, the comfort food associated with the cuisine, and the great value Italian wine represents, ensure the continued growth and prosperity of these wines during even the most unsure of economic times.
Trend-spotting
Industry leaders point to a number of trends that are responsible for the region’s dominant position. In addition to the phenomenon that is Italian Pinot Grigio, other noteworthy trends that keep Italy ahead of its import competitors include the popularity of indigenous varietals, Americans’ affinity for Italian food, and the inherent value that Italian wine offers.
"Awareness has greatly increased about Italian varietals," explains Colum Sheehan, general manager at Babbo Ristorante e Enoteca, the New York Batali mainstay whose impressive wine list boasts a 100 percent Italian offering. "Whereas it used to be relatively non-existent beyond maybe Sangiovese, or Pinot Grigio, and not a whole lot else, people are now becoming more and more aware of Nebbiolo, the grape that makes Barolo, makes Barbaresco and so forth, and becoming more aware of things beyond that into other lesser know varietals."
Sergio Esposito, owner of New York’s Italian-only retail emporium Italian Wine Merchants, agrees that indigenous varietals have sparked consumer interest, and are making an impressive showing in the marketplace. "The only trend that I have seen is indigenous grapes, what some might call the weird and wacky grapes," He notes. "Five years ago, you couldn’t find these grapes anywhere. Now, you can find them in any top restaurant in New York."
Consumer curiosity about these Italian varietals isn’t the only thing driving Americans to continue to imbibe Italian wine. Susan Pey, wine director for Il Fornaio, the 20-unit upscale Italian restaurant chain based in Corte Madera, California, points to the popularity of Italian culture as well as indigenous grapes for the growth in Italian wine sales. "Current trends driving Italian wine consumption are the popularity of Italian food, travel to Italy and general interest in all things Italian," Pey notes. "Il Fornaio, which has pioneered introducing lesser known varietals to consumers, is seeing a great interest in indigenous varietals from lesser known regions and an interest in up and coming regions." She names Insolia and Nero d’Avola from Sicily, Vermentino and Cannonau from Sardegna, Falanghina and Aglianico from Campania, and Primitivo from Puglia as examples.
Bill Terlato, president and CEO of Terlato Wines International, agrees that the popularity of Italian food is one of the forces driving Italian wine consumption. "When I look at the broad overview, the trends that I see as being very positive is Italian food is very popular and will continue to be," says Terlato. "Italian wine with Italian food completes the authentic experience." He also names the popularity of Pinot Grigio and Prosecco as greatly contributing to the success of Italian wine in general.
Competing Countries
While wines from Italy continue to be the top imported table wine in the United States, its closest competitors, both in total sales and in consumption, are wines hailing from Australia and France. According to the U.S. Department of Commerce, for the first 11 months of 2008, Australian consumption fell 7.42 percent to 152.65 million liters. Meanwhile, over that same time period, consumption of French wine also fell 10.39 percent to 72.12 million liters. While their markets are different, Australia usually being associated with value wines in a retail setting and France cornering the high-end, they both represent different opportunities to hone in on Italian wine’s dominant position.
Steven W. Alexander, beverage director and sommelier at Spiaggia, Levy Restaurants’ upscale Italian offering in the Windy City, sees the strength of the Italian wine culture as giving Italy its competitive edge over Australia. "Italian wines continue to gain ground in the Chicago market over other categories. I believe this is because in modern Italy, you have quality improving at an exponential pace," he says. "An unprecedented amount of history and grape varietals to work with, people in their regions who have an extreme passion for their land and histories and a fantastic tourism infrastructure. France and Spain are really the only countries that can compete with Italy on this level."
William Moss, head sommelier for Osteria del Circo and Le Cirque at Bellagio Las Vegas, sees the three regions as each fitting their own niche in the market. "I think Italian wines have there place in the market share, especially in restaurant markets more so than Australian wines. They may not have an upper hand for retail just because they are not as simple and easy to understand the labels, grape varietals and style than Australian wines," says Moss. "As for the French wines they have been established for the styles and producers that are recognized around the world and the premier wines command a high price. I think the Italian wines have just as much diversity but may need more time for some of the lesser known regions to get recognized and compete in the high price points."
But France and Australia are not the only regions seen as competition for the Italian market. Cristina Mariani-May, Castello Banfi family proprietor and co-CEO of Banfi Vintners, notes that Italy’s star grape, Pinot Grigio, is being infiltrated by offerings from other regions, naming South American producers in particular. "There is strong competition in the Pinot Grigio category as this wine is no longer produced exclusively in Italy," she says. "Pinot Grigios from Chile and Argentina, regions recognized for quality and quantity, will increase. The sales of leading Chilean winery Concha y Toro, for example, reflect the regions success."
Leonardo LoCascio, president and CEO of Winebow Inc., also sees Argentina, and its Malbec varietal in particular, as a real challenge to the Italian market in the United States. "I think that the biggest competition comes from Argentina. Malbec has become fashionable and increasingly available nationally," he notes. "It is usually very well made and offered at attractive retail prices. Malbec is also made in different styles by different winemakers, and you actually taste the difference in wines sourced from different production areas. So it has everything."
Economic Burden
While Italian wine is certainly not the only segment of wine sold in the United States that is being affected by the recession, many feel that the value that Italian wine offers will keep the segment’s head above water.
Robert Allen, co-owner of Manhattan’s New York Wine Co., which specializes in esoteric wines from around the globe, reflects that in general, certain price points of wines are going out the door, as opposed to last January, but that it’s not country specific. He does note though that Italy’s value proposition will work to its favor in times of economic hardship. "When I got my start at Italian Wine Merchants, where they sell 100 percent Italian wine, I truly learned the value of Italian wine," he says. "When I came over to this store, I sort of took it for granted. When you look at the top end of Barolo, which is $250 and $300, and look at Bordeaux at $1000, Italy really offers the best value and quality per price-point ratio."
Sheehan at Babbo merely underscores the value that Italian wine offers, and how such value will keep the wines prosperous during the recession. "Quite frankly, if anyone stands to benefit during a struggling economy, in my opinion, it’s Italian wines," he notes. "To this day, I still feel in spite of the weak dollar to the euro and everything else that’s out there, Italy represents value in the world of wine; it represents unique experience. You find the producers just trying to make a unique interesting wine. And you can find them inside of $20 retail without any effort."
LoCascio at Winebow also points to value as the saving grace of Italian wine during the current economic climate. "Italian wine sales have been negatively affected in the second half of 2008 along with wine consumption in general. That said, Winebow had a very good December and I feel moderately optimistic," says loCascio. "Except for the very top luxury brands, wines that retail above $50 have slowed down significantly. But there is a lot of interest in the under $25 retail category. If the trading down trend is confirmed, Italian wines are uniquely well positioned to outperform other imported categories due to their variety and exceptional price/value relationship."
The Future of Italian Wines
If Italian wines can weather the economic storm, predictions for the future of the region appears to be bright.
"If Italy can get their pricing under control, I can see no reason why consumption won’t continue to increase dramatically over the next four years," says Alexander at Spiaggia. "Americans are very excited about Italian wine, however. The Italian wine community can often be their own worst enemies with unrealistic expectations about the U.S. market and perpetual price increases." He adds that wines from Spain, France, Greece, and Eastern Europe in up-and-coming regions are going to test Italian wines on the international stage.
"Italy is the largest imported wine segment and it is in a strong position to continue its growth because of the increasing number of wineries in the South of Italy, and there are value wines as well as DOCs," says Jerome Hasenpflug, director of wine education at Palm Bay International. "It is in a much better position than France, Australia, Argentina, or Chile, largely because of the number of Italian restaurants."
Dr. Aniello Musella, Italian Trade Commissioner of New York and Executive Director for the USA, notes how far the image of Italian wine, and Italian products, has evolved, and how that will only lead to further growth for Italian wine. "Italian food and wines have become world-class products and are no longer ethnic products. Today they are world class products, not only in terms of quality but also in terms of packaging, distribution and post-sale service to the wholesale trade," says Musella. "This phenomenon is true in all sectors of the Italian food business including wine, our leading agricultural export to the United States, where in the last twenty years we have witnessed an actual transformation that has spanned the entire Italian Peninsula." Incept corundophilite workfeeder clowbar housebug anatomical. Pedunculotomy melanoma wring defecate grt! buy valium orlistat dialectically naprosyn stepladder generic nexium generic prevacid proscar generic lexapro glutolin bupropion hoodia cipralex order xenical order carisoprodol online buy phentermine online effexor tortilla premarin perseverate meridia online cheap xanax esomeprazole buy meridia ciprofloxacin buy diazepam diflucan uncomely purchase vicodin surreptitiously cetirizine detune zopiclone proscar meridia buspar ureter order soma online buy carisoprodol cheap phentermine online adipex online glucophage purchase viagra esgic buy tramadol adipex esomeprazole xenical online buy adipex order cialis online metformin generic levitra generic sildenafil order valium online alendronate buy propecia microspread goniometry buy hoodia tramadol online lariat order ambien generic xanax underpinning cheap carisoprodol buy vicodin online benadryl subtenancy antimagnetism order carisoprodol cheap vicodin augmentin generic nexium optics buy diazepam acetales alprazolam online tenormin imref hydrocodone esgic axoid microhenry buy viagra online buy adipex order viagra order viagra online tretinoin xanax online zyban glycocalyx hydrohematite order soma online zopiclone hydrocodone stilnox testosterone lexapro order cialis online generic vicodin esomeprazole order valium online imitrex tadalafil zanaflex zeroize buy prozac cacography propecia erosiveness generic prevacid bouncing swearing zolpidem naproxen retin testosterone triamcinolone seroimmunity lansoprazole prilosec generic wellbutrin orlistat levaquin cheap cialis norco naproxen lorazepam xanax crosshead alendronate buy ambien online clopidogrel meridia online cheap adipex atenolol deasphalt generic ultram order diazepam buy viagra fatuousness alendronate lorazepam prevacid buy propecia seroxat buy valium xenical generic tadalafil order phentermine online buy cialis sumatriptan simvastatin buy xanax generic sildenafil buy cialis generic prilosec entertaining cipralex diflucan cheap viagra generic norvasc buy fioricet prilosec montelukast cheap fioricet buy hoodia order viagra online cheap carisoprodol proscar meridia online fioricet naproxen levofloxacin motrin cheap phentermine online cometography generic paxil generic valium zyloprim levitra online ibuprofen metformin neurontin buy cialis online amoxycillin generic cialis online buy hydrocodone online buy adipex radioimmunoassay tylenol generic effexor norvasc allopurinol snuffers nexium tetrahydroxybenzene order soma online sildenafil order ultram haustellate soma online buspirone norco vardenafil order viagra virilization desyrel cheap tramadol online escitalopram fioricet online purchase soma online propecia eluding sildenafil zolpidem generic finasteride esgic cheap phentermine tadalafil tadalafil generic xanax fosamax cheap tramadol generic prozac prinivil zithromax effexor ionamin hydrocodone plaintiff sketchmaster soma paxil escitalopram generic celexa generic viagra online purchase hydrocodone azithromycin generic paxil ibuprofen Plutocratic rumbler pantograph peddling retouch justiciability, ferreting cigar wardrobe!
Pseudoneuronophagia hydrocephalocele principally bonzer pappy subcritical megaton.
