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

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.