American importers have been stockpiling Italian bubbly Prosecco as a hedge in opposition to the doable influence of tariffs threatened by President Donald Trump, wine trade knowledge present.
U.S. imports of Italian glowing wine — 90% of that Prosecco — skyrocketed by 41% in November, after Trump’s election, far exceeding shopper demand as importers stuffed the pipeline for future gross sales, in line with the Union of Italian Wines commerce affiliation.
“It was fairly pure on the finish of the yr to do additional shipments,” mentioned the commerce affiliation president, Lamberto Frescobaldi, given the uncertainty over whether or not tariffs would hit Italian wines or not — and the chance shoppers would in the reduction of on such luxuries if tariffs made them too dear.
“Can we survive with no glass of wine? Sure. Wine is a pleasure,’’ Frescobaldi instructed The Related Press this week.
Italian wines weren’t hit by tariffs in the course of the first Trump presidency, and no tariffs have been introduced thus far in opposition to European companions. Nonetheless, Prosecco importers and distributors are taking precautionary measures to guard the market.
Italy exports practically one-quarter of its wine to america, leaving the sector extra closely uncovered to doable tariffs than some other Italian export, in line with the commerce federation.
Final yr, Italy’s wine exports to the U.S. totaled 1.9 billion euros ($1.97 billion).
Prosecco grew to become the top-selling Italian wine in america final yr, representing practically 40% of all gross sales.
The primary indicators of market concern confirmed up even earlier than Trump was elected, with Prosecco shipments to america rising 17% within the first 10 months of 2024.
That compares with extra modest single-digit will increase to the following two markets, Britain and Germany, and much outpacing U.S. consumption which rose simply 0.6% within the interval.
“It is a vital determine that we didn’t anticipate,’’ mentioned Giancarlo Guidolin, president of Prosecco DOC consortium, the most important of Italy’s three Prosecco-producing consortia. ”We predict there was a rise of product within the warehouse.’’
One different issue within the larger deliveries might have been a threatened port strike in January, mentioned Dina Opici, chairwoman of the Wine & Spirits Wholesalers of America.
“That mentioned, clearly taking into account that there may very well be impending tariffs as nicely, I believe it in all probability gave individuals the next consolation stage in making that funding,’’ Opici mentioned.
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