Despite the general context of a wine market in a depressive phase, with global performances down 8% in volume and 7% in value, Brunello di Montalcino stands out. In the first nine months of 2024, Brunello recorded growth of 5% in volume and 1% in value. According to the Uiv Observatory based on SipSource data, Brunello di Montalcino has outperformed the still red wine category. While Italian wines recorded a -6% in value, French wines -8% and US wines -9%, Brunello has shown considerable resilience. In the luxury segment, with a retail price of over 50 dollars per bottle, Brunello dominates the consumption of Italian reds with a share of 32%.
Driving the growth in Brunello di Montalcino consumption that has continued for about two years is – according to Uiv elaborations on the SipSource-WSWA database that measures the depletion of distributors towards the market – the off-trade with a +10% in value that covers the decline in on-trade (-6%) with interest. Among the channels, at the end of the third quarter of the year, the liquor store segment (specialty stores) stands out in particular, which confirms its position as the leading retail outlet with a 63% share and a +5% annual variation, and the second outlet channel, clubs/wholesale (+76%), which includes important chains such as CostCo, which also supply restaurants. On the Horeca side, the gap in catering (-10%) is matched by the performance of hotels (+20%, with a share of 8% of the total value) and recreation, +14%, driven above all by sales at casinos (particularly in Nevada) and sports clubs.
For the president of the Brunello di Montalcino wine Consortium, Fabrizio Bindocci:
“2024 was probably the most difficult year due to an international context of great uncertainty; the hope is that after the American elections a process of normalization can be started, both in economic and geopolitical terms. Brunello has defended itself substantially well and the companies of Montalcino are confident that they can also regain share in the core restaurant channel: the Horeca sector has always been the primary outlet for our flagship wine and proof of this is the fact that it represents 54% of the value of sales, compared to an Italian share of 31% which drops to 29% for French reds”.
Good news, despite the economic situation, also on the front of the price structure, which remains unchanged. In both off-premise and on-premise, the greatest value is generated by the most important price ranges – above 50 dollars per bottle at distribution – with a weight of 71% in terms of volume that rises to 84% in terms of value.
Finally, compared to its direct competitors, Brunello di Montalcino in this part of the year is performing better than its direct foreign competitors. Compared to the French, excluding positive performances for Bordeaux Superieur (+4%) and Saint-Emilion (+6%), the +1% of Brunello acquires greater value if compared to the -30% and more of Beaune, Chateauneuf du Pape, the -23% of Margaux or the -15/-18% of Bourgogne and Pomerol. The great American wines also did badly, with losses in value ranging from -6/-8% of Oregon and Sonoma and the -20/-27% of Oakville and Howell Mountain, up to the 40% loss recorded by the champion of Californian wines, Atlas Peak.
