Latest news with #Federvini
Yahoo
3 days ago
- Business
- Yahoo
Wine producers in Italy's Valpolicella brace for US tariffs
By Oriana Boselli NEGRAR, Italy (Reuters) -Italy's wine producers, already struggling amid a slowing economy and a strengthening euro, face a further challenge after wine and spirits were left out of the U.S.-EU trade deal agreed on Sunday. Discussions are continuing regarding any tariff exemptions for the wines and spirits sectors in the framework trade deal, a senior European Commission official said on Monday, a day after the U.S. and EU agreed a 15% tariff on U.S. imports of most other goods from the European Union. Producers in the winemaking region of Valpolicella, in northern Italy, warn that on the top of any new tariff, their exports will be impacted by the depreciating dollar, which has lost more than 12% against the euro this year, making European goods more expensive for U.S. consumers. "This is already pretty bad," said Andrea Sartori of the Sartori winery in Negrar di Valpolicella, founded in 1898. "I'm very worried about the economy overall. And we all know that wine consumption doesn't thrive very well when we have seen economic crises in the past," Sartori told Reuters. "So this could be a domino effect that could hit the wine trade as well." The United States is the biggest export market for Italy's wine and spirits producers, generating sales of 2 billion euros ($2.3 billion) last year, or a quarter of their global sales, according to industry group Federvini. Lamberto Frescobaldi, president of Italian wine producer association UIV, said on Sunday that 15% tariffs on wine would result in a loss of 317 million euros ($372.63 million) over the next 12 months. Wine producers are already facing subdued domestic demand, with the Italian economy forecast to grow just 0.6% this year, according to national statistics bureau ISTAT, although premium wines are set to do better as deeper-pocketed consumers are less price sensitive. They include Valpolicella's top end Amarone wine. "Amarone is the least sensitive because it's already a premium wine with a pretty high price. So I don't think it would be a dramatic change," Sartori said. "I'm more worried about Valpolicella and Ripasso, which are mainstream, and a price increase could possibly damage the sales," he added (Additional reporting by Alex Fraser; Editing by Giselda Vagnoni and Susan Fenton)
Reuters
3 days ago
- Business
- Reuters
Wine producers in Italy's Valpolicella brace for US tariffs
NEGRAR, Italy, July 28 (Reuters) - Italy's wine producers, already struggling amid a slowing economy and a strengthening euro, face a further challenge after wine and spirits were left out of the U.S.-EU trade deal agreed on Sunday. Discussions are continuing regarding any tariff exemptions for the wines and spirits sectors in the framework trade deal, a senior European Commission official said on Monday, a day after the U.S. and EU agreed a 15% tariff on U.S. imports of most other goods from the European Union. Producers in the winemaking region of Valpolicella, in northern Italy, warn that on the top of any new tariff, their exports will be impacted by the depreciating dollar, which has lost more than 12% against the euro this year, making European goods more expensive for U.S. consumers. "This is already pretty bad," said Andrea Sartori of the Sartori winery in Negrar di Valpolicella, founded in 1898. "I'm very worried about the economy overall. And we all know that wine consumption doesn't thrive very well when we have seen economic crises in the past," Sartori told Reuters. "So this could be a domino effect that could hit the wine trade as well." The United States is the biggest export market for Italy's wine and spirits producers, generating sales of 2 billion euros ($2.3 billion) last year, or a quarter of their global sales, according to industry group Federvini. Lamberto Frescobaldi, president of Italian wine producer association UIV, said on Sunday that 15% tariffs on wine would result in a loss of 317 million euros ($372.63 million) over the next 12 months. Wine producers are already facing subdued domestic demand, with the Italian economy forecast to grow just 0.6% this year, according to national statistics bureau ISTAT, although premium wines are set to do better as deeper-pocketed consumers are less price sensitive. They include Valpolicella's top end Amarone wine. "Amarone is the least sensitive because it's already a premium wine with a pretty high price. So I don't think it would be a dramatic change," Sartori said. "I'm more worried about Valpolicella and Ripasso, which are mainstream, and a price increase could possibly damage the sales," he added
Japan Times
15-07-2025
- Business
- Japan Times
Italy's Chianti wine makers eye South America, Asia amid U.S. tariff threat
Producers of Italy's renowned Chianti wine have demanded a new export strategy backed by the EU targeting markets such as South America, Asia and Africa following U.S. President Donald Trump's threat of additional tariffs on European imports. Italy currently exports more wine to the U.S. than any other country, but producers are increasingly looking to diversify amid the trade uncertainty. "There is no point in feeling sorry for ourselves. It should be seen as an opportunity to accelerate a new export strategy, focusing on alternative and more stable markets," said Giovanni Busi, the president of Consorzio Vino Chianti, an association gathering the Chianti wine producers in the Tuscany region. Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, adding pressure on Italy, which exported €2 billion ($2.3 billion) worth of wines, spirits and vinegars to the U.S. last year, accounting for a quarter of its global sales, according to industry group Federvini. Busi identified South America, Asia and Africa as pivotal markets for Italian wine, citing Brazil, Argentina, Uruguay and Paraguay as regions with significant growth potential. He also noted increased demand in Asian markets, including China, Japan, Vietnam and Taiwan, emphasizing the need for targeted promotion and distribution strategies. "Africa and India are also areas where the wine consumption is beginning to spread," he added, encouraging structured efforts to penetrate these markets. Matteo Lunelli, CEO of Spumante sparkling wine producer Gruppo Lunelli, shared Busi's worries, highlighting opportunities in Japan, China, Korea, Vietnam, Thailand and the Middle East, while also identifying Canada as a growing market. "The United States were our first country, now we need to pay more attention to other areas," Lunelli told daily la Repubblica on Monday. Producers of Prosecco, the wine made in the northeastern Veneto and Friuli regions, are deeply concerned about the prospect of new tariffs. They sell around 130 million bottles every year to the United States — around 30% of their total export — worth almost €500 million. "Prolonged uncertainty weighs on the strategic choices of companies; we hope for a final and reasonable decision," Consorzio Prosecco president Giancarlo Guidolin said in a statement. Meanwhile, across the Mediterranean, Spanish winemakers are also eyeing Canada as a potential market, along with Southeast Asia and Latin American countries, hoping reciprocal tariffs on American wines might generate a gap in the market. Carlos Villar, managing director of top Spanish winemaker Protos, said Mexico was already his primary market, and Brazil could open up if a European trade agreement with Mercosur is finally inked. Jose Luis Benitez, director of the FEV Spanish Wine Federation, said Mexico was a good short- to medium-term option, particularly for Spain's Ribera del Duero wines, but as a country that increasingly produces its own wine, would only take any surplus for so long. Canada was a good alternative, he said. "Canada has told Europe that it's interested in buying its wines because it won't buy in the U.S.," he said. "That's a gap that European wine could plug."
Reuters
14-07-2025
- Business
- Reuters
Italy's Chianti wine makers eye South America, Asia amid Trump tariff threat
MILAN, July 14 (Reuters) - Producers of Italy's renowned Chianti wine have demanded a new export strategy backed by the EU targeting markets such as South America, Asia and Africa following U.S. President Donald Trump's threat of additional tariffs on European imports. Italy currently exports more wine to the U.S. than any other country, but producers are increasingly looking to diversify amid the trade uncertainty. "There is no point in feeling sorry for ourselves. It should be seen as an opportunity to accelerate a new export strategy, focusing on alternative and more stable markets," said Giovanni Busi, the president of Consorzio Vino Chianti, an association gathering the Chianti wine producers in the Tuscany region. Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, adding pressure on Italy, which exported 2 billion euros ($2.3 billion) worth of wines, spirits, and vinegars to the U.S. last year, accounting for a quarter of its global sales, according to industry group Federvini. Busi identified South America, Asia, and Africa as pivotal markets for Italian wine, citing Brazil, Argentina, Uruguay, and Paraguay as regions with significant growth potential. He also noted increased demand in Asian markets, including China, Japan, Vietnam, and Taiwan, emphasizing the need for targeted promotion and distribution strategies. "Africa and India are also areas where the wine consumption is beginning to spread," he added, encouraging structured efforts to penetrate these markets. Matteo Lunelli, CEO of Ferrari spumante producer Gruppo Lunelli, shared Busi's worries, highlighting opportunities in Japan, China, Korea, Vietnam, Thailand, and the Middle East, while also identifying Canada as a growing market. "The United States were our first country, now we need to pay more attention to other areas," Lunelli told daily la Repubblica on Monday. ($1 = 0.8553 euros)
Reuters
10-04-2025
- Business
- Reuters
Italian wine group welcomes U.S. tariffs pause but wants certainty
MILAN, April 10 (Reuters) - Italian wine and spirits trade group Federvini said on Thursday that U.S. President Donald Trump's decision to pause most tariffs represents "a step in the right direction", but the remaining 10% duty and uncertainty are a drag on the sector. "A 10% tariff may be manageable in the short term, but it is neither sustainable nor desirable for the future... we need regulatory certainty and a clear and stable trade framework," Federvini's president Micaela Pallini in a statement. Last year, Italy sold 2 billion euros ($2.2 billion) worth of wines, spirits and vinegars in the U.S. market, a quarter of its total worldwide exports, according to Federvini figures. However, fears over the effects of potential tariffs slowed exports last month and producers and U.S. importers gathered at a wine fair in Verona, in the north-eastern Veneto region last weekend, voiced concerns about the outlook.
