“A key segment of Italian wine is at risk,” according to the Piedmontese producer. There are also fears regarding a possible shift in consumer tastes, which could pivot toward Chile and Argentina, as well as the consequences of Trump’s tariffs on the entire supply chain. Among the solutions is market diversification: “But in America, we will always strive to do our best.”
“The 15% tariff rate hits the mass-market wine segment—specifically those with an ex-cellar price between €3 and €6 which, after shipping, duties, and distribution markups, retail in a price bracket not exceeding $13 a bottle.” These are the words of Franco Morando, general manager of Montalbera, a winery active between Monferrato and Langa.
According to Morando, wines in the luxury bracket are less exposed to risk. “We will certainly lose a consumer segment, the most important one, because the multiplier effect will push these wines out of the segment. We hope there is still room for negotiation. A return to zero is almost impossible, but perhaps we can get down to 10%. It’s too early to say.”
SHIFTING CONSUMER TASTES AND SOUTH AMERICAN COMPETITION
In addition to tariffs, there is concern over a possible shift in US consumer tastes. “The aspect that worries me, perhaps more than the tariffs, is the shift in consumer tastes toward other wines, maybe Argentinian or Chilean, because it then becomes difficult to win them back.” This refers to the risk of a structural replacement of Italian wines with products from other countries that are more price-competitive in the absence of penalizing tariffs.
“NO TO TRADE WARS, DIALOGUE IS NEEDED”
Morando also expresses a broader view on international trade policy: “I believe we should not start trade wars because, in the end, everyone along the supply chain will suffer, culminating with the final consumer being hit by a significant inflationary degree.”
The path suggested by Montalbera’s general manager involves dialogue and the promotion of ‘Made in Italy’: “Talking and clarifying are the keywords; promoting ‘Made in Italy’ and highlighting our unique and distinctive productions are the best weapons we can wield in the face of such severe trade policies.”
TOWARD EMERGING MARKETS, WITHOUT FORGETTING THE USA
Faced with the uncertainty of the American market, Morando suggests a possible alternative strategy: “In any case, in my humble opinion, the alternative remains the diversification of the sales portfolio toward emerging markets and those with higher receptivity, such as the East in general.”
But interest in the United States remains: “America,” the Piedmontese producer concludes, “will always be everyone’s dream and will always be a country where we will try to do our best, but unfortunately, right now it is a world going in reverse and we have to follow it.”
Morando, Montalbera: “15% US tariffs hit mass-market wines.” https://www.montalbera.it/.
