Monthly Archives: February 2025

Daniele Cernilli on the Wine Crises Part 2

After a “first episode” dedicated to the wine crisis, Daniele Cernilli continues to analyze the phenomenon and offers some advice dictated by experience.

Of course, analyses done by the span are as valuable as they are. But Those five issues I listed in the previous editorial are on the table with their full weight.

Someone pointed out to me that not much has changed in the new highway code. Controls have increased by 23 percent and penalties have been tightened, however. People are frightened, wine consumption has plummeted in restaurants, and anyway, the message is clear and the combination as well.

Wine is bad for you, in whatever quantity you take it, the production is not very transparent, if you drink one more glass and drive you risk heavy penalties. This is happening. Then, it is true, the greatly increased prices discourage. Also, when I consume something that tends to be superfluous, which I could also do without, in whole or in part, I have to have a motivation to purchase. If the reasons for not buying become preponderant, that’s it.

If wine no longer has a positive image, costs too much, even hurts, its production does not appear eco-sustainable, and appellations are clowns, why should I buy it? An argument cut a bit with a hatchet, but one that makes the point.

It is important to understand the context

Then, you also have to put this into context. One fact: more than 70 percent of wine, in Italy, is sold through the various channels of the Large-scale retail trade. Horeca represents, more or less, a quarter of the market. Everyone talks about the mark-ups operated in the restaurant industry, which have increased, sometimes little understood.

It would also be necessary to see what happens in the supermarkets, where wine sells in much larger quantities and where “normal” people, the non-enthusiasts, make their purchases. Because they make the market, not us.

But let’s give some practical advice.

To restaurateurs:

Around the world I have also seen other ways to operate mark-ups. A fixed figure, maybe with two or three brackets, not tied to percentages. Because, if you top up with those, price increases at origin make prices fly, especially for high-end wines.

For producers:

I understand that price increases due to the factors we know, glass, caps, packaging, transportation, fertilizer, low-production years like 2023, have had a heavy effect on production costs. However, if you just raise prices this does not work on the public. You have to communicate, and if this is not done, the image of wine will wobble, and in medium times there will be even more problems for sales and exports.

Then, in a couple of years, there will be stronger competition from dealcoholic wines. For now the “Maginot line” is represented by the fact that they cannot be made with Doc and Docg wines, but for how long? I would like to see a clearer strategy from consortia, representative bodies such as FederdocItalian Wine UnionFederviniConfagricoltura and also Fivi.

One will have to make momentous decisions in the wine world in the near future, I would like to know what are the concrete proposals, beyond the usual minuets.

For consumers:

When you go out and about equip yourself with a portable breathalyzer. It costs about 30 euros. It will give you the confidence to drive. The level of alcohol intake is different from person to person. Some people reach the 0.5 mg threshold with a couple of drinks and those who are under that limit with twice that amount.

Then, begin to probe less famous areas, which often offer excellent wines at lower prices than those produced in the “golden vineyards” of some Italian regions. Or, as they do in many countries where you really can’t drink if you drive, let’s get used to a friend, in turn, not drinking and being able to drive everyone home by driving him. Trivialities, of course, but very common outside Italy.

***

The second installment ends here, with the knowledge that we have only touched on such a complex topic And that I don’t have a magic wand to change things. Maybe there will be a third one.

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Daniele Cernilli (aka Doctor Wine) on the Wine Crisis

Daniele Cernilli addresses the topic of the wine crisis by focusing on the reasons that are causing it. We thus try to understand why the market is trudging along.

We have never seen a sales crisis like this in the wine industry for almost four decades, since the methanol scandal of 1986. The market is trudging along both in Italy and in major foreign countries, and there are many reasons for this.

Woe to the driver

The first, the most recent, is that many are frightened by the tightening of penalties for those who get driving with a blood alcohol content greater than 0.5 mg. The new traffic code provides for even arrest above 0.8, which used to be the maximum threshold for getting behind the wheel. Mind you, drivers should not drink alcohol, in my opinion, and I have personally done so for years. But what is happening is nonetheless worrying for wine consumption and is a reason for the consumer disaffection and for the economy of businesses and restaurants. Let’s not even talk about the problems it poses for wine tourism, which had been growing sharply lately.

Alcohol is dangerous

Second reason: the WHO continues to have its representatives claim that even a small dose of alcohol can be dangerous to health, effectively challenging the concept of “moderate drinking” as unsustainable. Wine is bad for you, in short, and this also scares consumers.

Wine, or the devil

Third reason: there is a lobby against spirits and wine among parliamentarians and in European committees. There are proposals on the inclusion of wording on labels advising against its consumption. If this line were to pass, the CMOs, funds provided, among other things, to promote exports to non-EU countries, such as the U.S., Canada, the U.K., and Japan, which are very important for Italian wines, would be in jeopardy. If wine is bad for you, you cannot promote its consumption and facilitate its sale, in short.

The misinformation

Fourth element: some television investigations have questioned aspects related to the transparency of production, sometimes even in the presence of practices that are completely legal, but little known to the general public. The image of the industry has evidently been affected.

Overpriced wines?

Fifth and final element: the increase in prices brought about by inflation and the rising costs of corks, bottles, packaging, transportation, fertilizer, and the like. All of this means that young people are also drinking less for economic reasons, that many consumers are orienting themselves differently as a result, that, for now especially in the U.S., dealcoholic wines are gaining market share, and that sales halfway around the world are stagnating.

These are the issues on the table. For some subdued proposals the appointment is in the next editorial.

The Wine Crisis Part 1

By Daniele Cernilli February 3 2025

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A Banquet for Chinese New Year

2025 on the Chinese calendar is the year of the Snake which began on January 2 and lasts for about 15 days.  To celebrate, our friend Roger Chen prepared a memorable feast consisting of traditional dishes, accompanied by wines selected by Tony Di Dio.  Here are some of the highlights.

Appetizers:

Tudou Sela (Shanghai Potato Salad)

Xiaocong Ban Doufu (Silken Tofu with Scallion)

Xiang-gan Bocai (Pressed Tofu with Spinach)

Shanghai La Baicai (Shanghai Spicy Cabbage)

Rousi He-ye-bing (Shredded Pork with Lotus Leaf Buns)

Nino Franco Grave Di Stecca-Veneto

Foxen Bien Nacido Vineyard Chardonnay Block UU  2017  Santa Maria Valley

Entree:

Zha Ou-he (Fried Stuffed Lotus Root)

Gongbao Jiding (Kung Pao Chicken)

Huacai Yudoufu (Chinese Cauliflower with Fish Doufu)

Tangcu Liji (Sweet and Sour Pork Tenderloin)

Xiangchang Fensi (Mung Bean Noodle with Diced Sweet Sausage)

Qiezhi Yukuai (Fish Fillet in Sweet Tomato Sauce)

Yangzhou Chaofan (Yangzhou Fried Rice)

Dessert:

Song Gao ( Steamed Rice Cake with Red Bean Paste & Dates, Raisins, Walnuts, Candied Melon Toppings)

Aveleda Solos De Xisto Alvarinho 2022 Portugal

Gung hei fat choy, Happy New Year and Prosperity!

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