Pricing pressure mounts as US expected to overtake the UK as leading importer of Prosecco

By Erin Smith

Published: 15 August, 2016

Prosecco pricing is under pressure as demand increases in the US and the 2016 harvest is delayed according to Global Market Update report release by global wine brokerage firm Ciatti.

According to the report the US is expected to shortly surpass the UK as the leading importer of the Italian fizz.

"Gomberg Wine Data shows that in January - May 2016, Italian sparkling wine imports into the US reached 2.61 million 9-litre cases, up 14% f rom 2.29 million cases in the same period of 2015, which itself was up from 1.55 million cases in January -May 2014," according to the report.

The increase in demand in the US is only partly to blame for July being a busy month of contract renewals for Prosecco producers. Currently the harvest is estimated to be two weeks behind schedule and stocks for Prosecco as well as entry level wines are running low.

The report stated: "The growing season in Italy, two weeks behind schedule, is proceeding smoothly. Mildew has been a problem, while some heavy rains at flowering time have helped reduce any excess clustering. Some harvesting is already underway, and there has been concern that the early grapes are containing less juice than normal, but it is too early to say."

"Prosecco contract renewals made July's business busier than in recent months. Away from Prosecco, stocks of entry level product in July were at rock bottom and many wineries, especially in the south-central areas, will get to harvest empty."

Importers should not expect to see any price decreases int he near future as demand is expected to stay strong. "Harvest won't bring much relief on Prosecco prices, as increased output is only meeting -and not exceeding -the steadily increasing demand. Prices will be stable or increase slightly. Buyers are counting down the days until the 2016 Prosecco is available because stocks are running short -thus news of a harvest two-weeks delayed is not welcome," the report said.

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