All posts by admin

Wine Report — November 19 – 2025

(Italy & the world – for acquisition, divestment, and positioning decisions).

Key points

  • In Italy, the 2025 harvest is estimated at around 47.4 Mhl (8% vs 2024) according to Assoenologi-UIV-ISMEA, with good-excellent recorded yields.
  • However, the OIV reports that global production is estimated to be lower than the five-year average for 2025, with Italy being a positive exception in the global panorama.
  • The bulk wine market in Italy maintains a stable average price of around €0.78/litre (2.1% on the previous period), but with decreasing volumes and already high stocks.
  • Italian exports show selective growth: in the first half of 2025 the value marked 1.5% and the volumes 2.1% for the main destinations, but with a deterioration in the average price, especially towards the USA.
  • Inventories in Italy represent an “elephant in the room”: surplus inventory combined with increasing production generates strong pressure on the generic and low-value segments.
  • On the M&A and financial instruments front, the use of innovative instruments (e.g., guaranteed bonds on wine stocks) by Italian wine companies is growing.
  • The strategic context suggests that value today is created more on the digital asset, the channel, quality and premium exports rather than on pure volumetric growth—a crucial shift for those operating in acquisitions/divestitures.

M&A Radar

Deal / RumorPartsSize / NotesGeographySource
Caffo Group 1915 acquires Italian Wine Brands branch (Talloria Valley, Piedmont)Caffo ↔ IWBnondisclosureIT-Piedmont
Castel-Vins acquires Tannico e-commerce platform (from Campari & Moët Hennessy)

Prices & Harvest – Mini Operational Box

  • Sangiovese grapes in Umbria: ~€26-30/100 kg; Merlot/Cabernet ~€28-30/100 kg; Sagrantino DOCG ~€100-140/100 kg (October data)
  • Veneto/Vicenza DOC grapes: ~€40-60/quintal for white/red (October data)
  • Bulk wine in Italy: ~€0.78/litre (2.1% on the previous period) but a less active market and weak trade.
  • Italian production 2025: approx. 47.4 Mhl (8%), but cautious revision towards ~44 Mhl in some readings.
  • Operational note: With high inventories and production growth, careful inventory management and segmentation (premium vs. generic) are required to avoid margin erosion.

Wine Report of November 18 – 2025

(Italy & the world – for acquisition, divestment, and positioning decisions).

1. Key points 2025 (snapshot)

  • Production & Harvest Italy 2025
    • Joint estimate by Assoenologi–Ismea–UIV: 47.4 Mhl (8% vs 2024), a vintage defined as “excellent” in terms of quality.
    • Alternative reading Legacoop: more conservative estimate ~44 Mhl , considered more realistic with the harvest almost completed.
  • Inventory: The Real Elephant in the Room
    • As of October 31, 2025, Italian warehouses recorded 44.5 Mhl of wine (almost an entire harvest), 23.8% vs. September 30 and 5.2% vs. October 31, 2024 .
    • Over 62% of stocks are in the North → strong risk of pressure on bulk and generic DOCs.
  • Bulk wine: prices holding up, demand not
    • Global bulk market H1-2025: stable values (-0.3%) with average price ~0.78 €/L (2.1%) despite declining volumes.
    • In Italy, recent reports confirm ~€0.78/L and “weak trade, cautious demand, high inventories”.
  • Italian exports: selective, not generalized growth
    • Some analyses for H1 2025 indicate a 1.5% value/2.1% volume ratio for the 12 main destinations; however, the year is uneven across markets and categories.
    • The new 15% US tariffs could cost Italian companies >€300 million per year , with a strong impact on Prosecco, Pinot Grigio, Moscato, and Tuscan reds.
  • Innovation as a discriminant of value
    • 2025 studies confirm the growing use of AI, remote sensing, and automation in vineyards, wineries, and wine tourism: the tech component becomes a KPI in industrial assessments and due diligence.

2. M&A Radar (Italy – focus 2H 2025)

Deal / RumorPartsGeoStrategic noteSource
Castel-Vins (Groupe Castel) acquires TannicoCastel-Vins ↔ Tannic (from Campari & Moët Hennessy)IT / EUWine e-commerce platform, 100% stake, strengthens digital channel and consumer data assets
Torrevento reacquires 51% of its shares from Prosit Group.Torrevento ↔ Prosit GroupPuglia (IT)Fund exit, return to 100% family ownership: an interesting case of “renationalization” of control
Caffo acquires the Valle Talloria branch (new “Casa Cinzano”)Caffo Group 1915 ↔ Italian Wine BrandsPiedmont (IT)Key production asset for Cinzano; spirits-wine synergies and industrial repositioning

3. Prices & Harvest – operational mini box

Italian Harvest 2025

  • Realistic range: 44–47.4 Mhl , with consensus on good-excellent quality but strong heterogeneity by area.
  • Substantial message: it’s not quantity that’s the problem, but how to position it in a context of stagnant consumption and full warehouses.

Stocks

  • 44.5 Mhl of wine as of 10/31/2025 , 5.2% year on year.
  • In fact, the system has almost two harvests in its belly between stock and new crop.

Grape prices / bulk (flash)

  • Umbria (October):
    • Sangiovese 26–30 €/q , Merlot/Cabernet 28–30 €/q , Sagrantino DOCG 100–140 €/q , with strong downward corrections vs 2023.
  • Veneto / Vicenza DOC: grapes €40–60/q for white/red DOC.
  • Bulk Italy: ~0.78 €/L , “not very active market, pressure on volumes”.

4. Strategic reading for acquisition / divestment / positioning

I’ll summarize the key implications for you as if you were evaluating an M&A dossier or reorganizing a winery portfolio:

  1. Multiples to be handled with care
    • With 44.5 Mhl in the cellar and an abundant harvest, paying multiples based on “volume growth” logic is difficult to defend.
    • It makes sense to reward: brand equity, premium/PDO segments, export capacity, level of digitalization and automation , not mere hectolitres.
  2. Assets “full of wine” ≠ rich assets
    • High stocks today are a working capital risk , not a guarantee:
      • A clear plan for intelligent disposal is needed (blend, B2B channel, opportunistic export)
      • And, in parallel, I am redesigning the range so as not to repeat the same problem in 2026.
  3. Technology and channel become price drivers in deals
    • Operations like Tannico–Castel show that the value moves towards:
      • end customer control (data)
      • ability to do dynamic pricing and assortment
      • and technological assets that can be integrated into the supply chain.
    • In target wineries, ask yourself: how much is the digital component worth compared to the hectares?
  4. Export: mandatory diversification
    • US tariffs and macro volatility force us to:
      • review country mix (strengthen Northern Europe, Canada, APAC, emerging markets)
      • rethink the role of bulk as a tactical lever (spot/medium-term contracts) and not as the only safety valve.

5. “To-do list” for a board in the next 6–9 months

  • For buyers (industrial buyers or fund):
    • favor targets with strong brands, healthy exports, a premium mix , a low inventory/turnover ratio, and investments already underway in AI/automation.
    • discount overstock risk in multiples, building earn-outs linked to inventory reduction and margin growth, not just turnover.
  • For those selling or looking for partners:
    • clean up the profile: inventory plan, range redesign, margin KPIs per label , digital roadmap (CRM, D2C, well-managed e-labels).
    • present itself as a ready-made platform (processes, governance, data), not as a “cellar full of wine”.
  • For consortia and territories:
    • avoid a price war on generic drugs;
    • focus on performance disciplines, clear segmentation, credible storytelling , supported by data and not just by territorial rhetoric.

Wine Report of November 17 2025

Here’s a concise and actionable update for the wine sector, useful for guiding strategic decisions about acquisition, divestment, or positioning.

Bullet points

  • Italian wine exports in the first eight months of 2025 recorded a decrease of -2.9% in volume (≈ 1.37 billion litres) and -1.9% in value (≈ €5 billion) compared to the same period of the previous year.
  • In the first half of 2025, according to the report of the 12 main international destinations, Italy recorded a 2.1% growth in volume and 1.5% in value for wine exports.
  • The global wine market is experiencing a decline in consumption and production volumes to the lowest levels in decades: the crisis in numbers is being offset by selective growth in premium wines.
  • At a technical/production level: for bulk wine in Italy, in 1H 2025, indicative average price ~ €0.78/litre (2.1% compared to the previous period) but with weak demand.
  • For the 2025 Italian harvest: initial estimate of ~47.4 Mhl (8% vs 2024), but some revisions bring the forecast towards ~44 Mhl; overall quality is reported as “good-excellent”, but weather uncertainties and supply/demand imbalance risks persist.
  • In the technological and digital fields: an academic study highlights how AI (machine learning, computer vision) is emerging as a strategic lever in viticulture, production, and wine tourism.
  • A significant M&A transaction: Groupe Castel (via its subsidiary CASTEL‐Vins) has acquired 100% of the Italian wine e‑commerce platform Tannico, previously controlled by Campari Group and Moët Hennessy.

M&A Radar

Deal / RumorParties involvedGeographySize / NotesSource & Date
Acquisition of TannicoCASTEL‑Vins ← Tannic (Campari & Moët Hennessy)Italy (wine e-commerce platform)100% acquired, amount undisclosed(Oct 20, 2025)
Repurchase of 51% of Cantine Torrevento by the Apuliana company itselfTorrevento ← Prosit GroupPuglia, ItalyRenationalization of control operation, amount not specified(13 n

Prices & Harvest

  • Average price of bulk wine in Italy (1H 2025): ~ €0.78/litre , 2.1% compared to the previous period.
  • Grape prices in some areas: for example, in Veneto/Vicenza for DOC grapes ~ €40-60/q.– (higher organic premiums) and in Pavia Barbera DOP ~ €48/q (range €40-55/q) – generally downward trend compared to previous years.
  • Italian stocks: as of October 31, 2025, wine stocks ~ 44.5 Mhl (23.8% compared to September 30, 2025; 5.2% vs. October 31, 2024) – signals potential overaccumulation.
  • Italy 2025 harvest: initial estimates ~47.4 Mhl (8% vs 2024) but revised to ~44 Mhl; quality reported as good–excellent but be wary of weather and demand.

Harvest 2025: Italy on the Rise, Excellent Quality and a Market Seeking Balance

The 2025 harvest delivers a positive and, in many ways, encouraging production outlook for Italy. After a 2024 marked by climatic uncertainty and market tensions, the newly completed vintage brings the country back to the five-year average, with output estimated at 47.447 million hectolitres, equal to +8% year-on-year. But the real headline is quality: the grapes harvested stand out for their health, uniform ripening and very high oenological potential.

Harvest 2025: Italy on the Rise, Excellent Quality and a Market Seeking Balance

A mild spring and an early summer favoured a regular vegetative cycle and an overall earlier harvest, especially in the North. The result is a quality profile that promises fresh and long-lived wines in northern regions, balanced wines in central Italy, and structured, deep wines in the South.

Key Features of the Italian Vintage

Production on the rise
Total volume rebounds after two years of decline, realigning with historical standards. With over 47 million hectolitres, Italy confirms its position as the world’s leading wine producer, ahead of France, Spain and the United States.

High quality from North to South
Northern Italy: excellent ripening, intact grapes, pronounced aromatics. Early fermentations point to particularly clean and well-balanced white wines.
Central Italy: good day-night temperature variation and limited disease pressure favoured a uniform harvest.
Southern Italy: structured and highly expressive reds, with sugar levels well balanced by natural acidity.

Stable stocks
Despite higher production, wine stocks as of 30 September 2025 remain essentially stable. This signals an active—yet still fragile—market.

The hot topic: grape prices aren’t covering production costs

The 2025 harvest is generous in terms of quality, but the economic picture shows growing tension. The provincial president of Cia Cuneo, Claudio Conterno, raises an alarm echoed in many other Italian regions: “At this year’s average prices, it’s difficult to maintain vineyards.”

According to Conterno, a fair price for grapes should start at €1.20 per kilo, a figure that now coincides merely with production costs. Nevertheless, the season saw sharp fluctuations: almost no demand in July, followed by a sudden shortage of grapes during harvest.

Conterno also highlights another critical issue: the weight of industry players in price formation. In the Langhe, he notes, 70% of grapes are vinified directly by growers, 20% by cooperatives, and only a small share by industry. Yet the latter continues to significantly influence grape prices, even in territories where production costs—including land—are incomparable.

At the same time, the Cia president comments on wine’s public image: “Wine is often demonised, while other beverages with a much greater health impact are rarely questioned. When consumed in moderation, wine is part of our landscape, our culture and our work.”

The global picture: low production, but a more stable market

While Italy posts a positive season, the rest of the world remains in a delicate balance. According to the OIV report published in November 2025, global production is estimated at 232 million hectolitres—the third lowest ever recorded.

The figure represents only a timid recovery compared to 2024 (+3%), yet remains 7% below the five-year average.

Paradoxically, this is not necessarily bad news. Lower production is helping stabilise the global market, in a context marked by weak demand, high inventories and persistent trade tensions.

Main Producers in 2025
– Italy: 47.3 mln hl, +8%
– France: 35.9 mln hl, –1% (second-lowest harvest since 1957)
– Spain: 29.4 mln hl, –6%
– United States: 21.7 mln hl, +3%
– Australia: 11.6 mln hl, +11%
– Argentina: 10.7 mln hl, –1%

Europe: a mix of recovery and difficulty
Italy leads the continent, while France, Spain, Germany and Portugal continue to face unfavourable climatic conditions. Romania stands out in the opposite direction, growing by 30% and surpassing 4 million hectolitres.

Southern Hemisphere recovery
After three challenging harvests, the Southern Hemisphere shows a 7% increase. Australia, South Africa, New Zealand and Brazil all report positive trends thanks to more favourable weather conditions.

A harvest that encourages, a market that demands stability

The 2025 vintage confirms the solidity of Italian viticulture, both in quantity and quality. The challenge now is economic: ensuring profitability for producers, containing market fluctuations and enhancing a production that demonstrates resilience and adaptability year after year.

A country that continues to be a global leader cannot overlook the real value of grapes, vineyard labour and the cultural heritage embodied in every bottle. The 2025 harvest marks a fresh start; the future will depend on the sector’s ability to achieve a more stable and sustainable balance.