Prosecco: possible price increase foreseen
The increase in the price of raw materials in Italy would cause an increase in the selling price of Prosecco.
The prices of Prosecco, Primitivo and Chianti are about to increase, predict the market, as a consequence of the increase in prices of materials such as wood, metal, paper and glass. Corriere Vinicolo reported.
This is a worrying situation for Italian wine exports (+15.6% in the first half of the year), which are expected to slow down as a result of the increase. Wood-based products are expected to increase 53%, 44% for metals, 60% for paper packaging and 20% for glass bottles. In addition, the situation is expected to worsen by the time this year’s short crop becomes available, for which a 9% drop was expected this year.
The price increase will also affect companies that receive supplies of barrels and large casks for Italian vineyards. Garbellotto, for example, reports a 20-25% increase for oak, while the price of metal (used for rims) has doubled. Other products such as laminated beams to support barrels and casks tripled their production price. “We found ourselves in the obligation, for the first time in 20 years, to increase the prices of our products twice in the same year,” said Piero Garbellotto, CEO of our company.
“If the prices of materials increase, it is because there is little availability, and this is the biggest problem. The whole supply chain must realize that right now the risk is not so much paying more for the material, but not having it,” added Michele Moglia, CEO of Enoplastic, a producer of capsules for wines and sparkling wines.
Italian producers shared with Corriere Vinicolo that they are not only concerned about price increases, but also about the aggravating energy bill, which has always been heavier in Italy than in competing countries due to a unique tax component. According to Corriere Vinicolo, energy costs have increased by 138% compared to 2020.
Double-digit price increases are expected for wines from Italy’s most in-demand appellations, such as Prosecco, Primitivo and Chianti, largely caused by adverse weather conditions throughout 2021: spring frosts were particularly damaging for vineyards located in the valley, as well as summer hail storms. A very dry summer in almost all of Italy also affected the harvest in quantitative terms.
To date, wineries have not yet implemented price increases, which have been postponed to early 2022.
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