Italian producers initially reacted to the vague tariff threats a few weeks ago with a shrug; no one was worried. After all, Prime Minister Meloni maintains excellent relations with the Trump camp and even dined and watched television with him in Mar-a-Lago in January. Then, the possibility of 25% tariffs became real, and it it was clear that, unlike the first time he imposed them on Europe during his first presidency, Italy would not occupy a special position in Trump's plans or his anger towards the EU.
Marco Caprai, the most famous winemaker of Sagrantino di Montefalco, reacted immediately. According to information from the news agency ANSA, he had already shipped US orders up to the first quarter of 2026 by March 12, 2025. But no sooner had the associations calculated the potential €1bn damage from the 25% tariffs, along with the collateral damage, than the next bombshell hit. The latest threat of 200% punitive tariffs in response to the EU tariffs on whiskey shocked producers across Europe.
Lamberto Frescobaldi, President of the Unione Italiana Vini (UIV) and head of the ancient Tuscan family wine business, said "We find ourselves in 'The Sleep of Reason Produces Monsters,'" referring to a famous aquatint by the Spanish artist, Goya. He continued, "We hope for a quick awakening from this nightmare, because wine is a symbol between the two peoples. With the 200% tariffs, which we want to believe in just as little as we believe in monsters, the EU would lose approximately €4.9bn in exports. But the entire American wine and food industry would also suffer losses. Because every euro paid for an imported wine generates €4.50 for the benefit of the American economy,"
In 2024, Italy exported €1.93bn worth of wine to the USA (+10%), representing 24% of its global wine exports. The wine industry accounts for 1.1% of Italy's gross domestic product and generates added value of over €17bn.
In a statement dated March 15, 2025, the UIV explains that the 200% ‘retaliatory tariffs’ on wines and spirits from the EU, threatened by President Trump, could reduce the total value of exports to the USA by €8bn. However, the same product categories exported by the USA and subject to potential EU countermeasures have a value of only around €1.35bn.
This imbalance threatens to cripple the wine sector. The UIV, together with the European business leaders of the Comité Vins, asked the European Commission to remove American spirits and wine from the list of countermeasures. Cancellations for goods destined for overseas are already increasing. The EU 50% has been postponed until mid-April.
Problems and opportunities in Exports
In 2024, Italy achieved a long-awaited export record of €8.13bn – thanks in part to inflation, a favorable exchange rate, and US stockpiling after initial tariff threats. However, this impressive figure carries with it a fundamental problem of Italian exports. Almost half of this (€4bn) is generated in the three main markets: the USA, Germany, and the UK. Wine consumption is declining and consumer trends are changing in these three countries as much as elsewhere.
In Great Britain, there's the added problem of increased alcohol taxes based on alcohol by volume, while the US has protectionism. The associations have long warned about the dangerous dependence on a few markets, and Italy is working to develop new ones. Vinitaly International, for example, went to New Delhi at the beginning of March with its roadshow to acquire new business. Also in March, it participated in Wine South America in Brazil. China and Asia will be targeted again in 2025, and in July, there will also be a trip to Kazakhstan. The sector considers a swift entry into force of a hoped-for free trade agreement with Mercosur in South America this year, to be particularly important.
"But let's also think about Canada, where great opportunities are currently emerging. US wines and spirits have disappeared from supermarkets, including Californian Pinot Grigio. Our wine is positioned in the 'Daily' segment and could also offer an excellent alternative in terms of quality," says Albino Armani, President of the Consortium for the Pinot Grigio Delle Venezie.
This naturally also applies to other Italian wines. The Canadian population could boycott US goods even if the trade war is resolved, following Trump's desire to annex Canada and declare it the 51st state of the USA. The country is already Italophile. As the fourth most important export market, Canada purchased €447.8m worth of Italian wine in 2024 (+15.3%).
Russia increased its imports by an almost surreal 45.6% and generated approximately €230.6m for Italian producers in 2024. Among the other top ten export markets, the gains are also higher than the losses. Switzerland spent €411.1m, only 1.96% less, and France remained stable at €304.6m. But the Netherlands increased sales to €257.1m (+10.1%), and Sweden grew by 3% (€189.6m).
The small country of Austria is also noteworthy: although it produces more wine at home than it can drink, it spent 14.3% more on Italian products than in the previous year (€163.5m). Denmark also paid more in the last year than in 2023, with €150.8m (+4.94%). Only Norway stands out in Europe with a significant decrease of 10.9%, its contribution falling to €92.2m. Belgium loses very little (-1.6%) and still paid €227.5m. Japan remained stable at €184.2m (+0.5%), as did South Korea at €50.6m. China declined again, ending with a decrease of 10.2% at €89.5m.
An industry on the rise
Italy is now permitted to dealcoholize wine on its own soil. Previously, this could only happen beyond its borders. The industry wants to catch up in international competition and is adapting to positive market developments worldwide. Sales expectations are also rising domestically, especially after penalties for driving under the influence of alcohol were massively increased from December 14, 2024, and wine consumption and visits to Italian bars and restaurants declined accordingly.
The VasonGroup from Veneto is an international player in the wine, food, and beverage industry. The group specializes, among other things, in the development of new technologies for the partial or complete dealcoholization of wines and is a pioneer in this field. "We rely on membrane technology because it is best able to preserve the quality and the chemical-physical properties of the wine after alcohol extraction. The technologies for improving the taste of alcohol-free wines are currently developing very rapidly; new dimensions will be reached in a few months," says Albano Vason, a member of the board. The VasonGroup's range of dealcoholization technology is also focused on tmedium-sized businesses thanks to prices ranging from €30,000 to €300,000.
“In Italy, we have been accompanying various Italian companies for a few years now that wanted to be ready for the process as soon as it is permitted in our country. The producers are informing themselves, requesting advice, but only a few are already prepared for investments."
Italy is still in its infancy with dealcoholization on its own account, and not all production guidelines are completely clear yet. One obstacle, for example, remains that the premises must not only be separate from normal winery operations but also must not be accessible from the same entrance.
Business models are emerging that are dedicated exclusively to dealcoholization and see themselves as service providers. The versatile company Cantine Sgarzi from Bologna has been using alcohol-free wines as a base product for flavored beverages and frizzanti for about three years. In 2024, the company produced approximately 500,000 bottles of alcohol-free wine-based beverages, and the trend is upward. Sgarzi has so far relied on specialized companies in Germany, Spain, and France for this and now wants to establish its own independent dealcoholization company.
"We have developed a business plan that envisions realization within the year 2026. We want to become a point of reference for the Italian market, also because we are strategically well located in Bologna and easily accessible from both the north and the south," informs Export Manager Francesca Sgarzi.
Cantina Pizzolato from Veneto is also planning its own separate dealcoholization winery as a service provider and is investing in a system worth €1m, which is expected to produce 50 hl per day. The industry expects an investment boom; according to the UIV, around 50 systems could become operational this year. Bulk wine brokers and large bottling companies are also already in prospect.
More No than Low
"I believe that the market potential for alcohol-free wines is higher worldwide than that for partially dealcoholized wines. Approximately 50% of wine consumers are believed to be interested in wines without alcohol, but this assessment varies from company to company," says Albano Vason of the VasonGroup.
Daniele Simoni, Managing Director of Schenk Family Italia, sees it similarly. "In the long term, I personally see more room for alcohol-free wines. The catchment area for dealcoholized wines is much larger than that for low-alcohol wines. With zero alcohol, we have the hope of reaching soft drink consumers. I don't believe that traditional wine consumers will switch to zero alcohol, except to a very small extent. But there is a world of soft drink consumers who might prefer alcohol-free wines to traditional soft drinks because they don't contain preservatives or colorings and, in the case of red wines, have the same antioxidant properties as wine," Simoni explains.
Schenk Family Italia has been dealcoholizing in Spain for four years and is ready to invest in facilities in Italy as soon as the implementing regulations are clear. In an interview with Corriere Vinicolo, Simoni specifies that the no-low production is then planned to take place at Schenk Italia's headquarters in Ora (South Tyrol) and that an investment of €2m is planned.
Permission for IGT and DOC wines desired
Large producers like Argea, as well as Cantine Sgarzi and wine cooperatives like the Sicilian Colomba Bianca, are hoping for approval of alcohol-free wines with IGT designation, as in France, because the neighboring country has a competitive advantage with this. Many even dream of alcohol-free DOC wines, if only to improve the image of no-lows and offer consumers added value.
In Italy, alcohol-free wines with protected designation of origin could function better, especially in restaurants. Until the distant but not impossible, approval, the large DOC consortia are working on light versions, such as with Pinot Grigio Delle Venezie. However, the lower-alcohol variants should generally come about naturally and not through partial dealcoholization. A category with 8.5% alcohol by volume would also be legal and conceivable for Prosecco DOC, but it would have 50g of residual sugar per liter. The President of the Chianti Consortium, Giovanni Busi, stated during the Anteprima in February 2025 that the board of directors was already considering the introduction of a "Chianti Low."
In Sicily, the producer association Assovini Sicilia, in collaboration with the University of Milan, has launched the Innonda project. The focus is on reducing the alcohol content of the leading variety, Nero d'Avola, to meet consumer trends. The wineries Rapitalà, Feudo del Pisciotto, Tenute Lombardo, and Dimore di Giurfo are participating in the trials. Here, however, they are experimenting with partial dealcoholization based on reverse osmosis and vacuum distillation, as well as at the microbiological level with special yeasts that produce less alcohol during fermentation. The goal of the trials is to produce Nero d'Avolas with 12%, 10%, and 8% alcohol by volume.
Interview with Massimo Romani, Managing Director of Argea
Are there any novelties in the alcohol-free sector for 2025?
In 2025, Argea will launch "Brilla 0.0," an alcohol-free variant of our Prosecco line.
And partially dealcoholized?
We are currently working on the implementation of two low-alcohol variants: one based on red grapes and one based on white grapes, using international grape varieties. A small sample production will be shared with partners who are particularly sensitive to the topic at trade fair events. The new products could possibly see the light of day in the context of specific country projects at the beginning of spring.
Dealcoholization has previously taken place in Germany – will it also happen in Italy in the future?
With the new decree, we are evaluating the best solutions at an industrial level to invest in facilities for alcohol-free wines. At the moment, we do not yet have a concrete project, but in the future, a dealcoholization center could be established in Argea's production facilities.
What do you think of dealcoholization centers, similar to those in France? Would that also be a good idea for Italy?
They would be another option and, above all, a solution for companies that do not have the size and capacity to set up their own dealcoholization facilities.
What are your most important markets for alcohol-free products?
Sales in 2024 are encouraging, especially in Germany, the United Kingdom, and the Nordic countries. There is great curiosity in the USA, but we are still working on the necessary documentation to comply with FDA regulations. The Italian market is still developing compared to the markets mentioned above, but we are noticing that there is curiosity here as well.
Argea is closing the year 2024 with significant growth. The year 2025 began with the purchase of the US importer WinesU. What goals have you set yourself by the end of 2025?
Thanks to this transaction, we will have a direct presence in the US market, which is our most strategically important market both in terms of volume and value. We will work intensively to maximize synergies, especially in an environment characterized by the uncertainty of the Trump administration. At the same time, Argea will continue to expand its presence in other important markets such as Germany.
