But Why is the Wine Gone? Part 1 – Prosecco

Several weeks ago there was an article by the Drinks Business proclaiming that a Prosecco shortage was nigh.  This sparked off a number of news outlets to cover the story.  Given that Prosecco is one of the hottest drinks on the market right now this was grave news indeed.  The UK’s Guardian, The Drinks Business as well as the Telegraph put the increase of sales of Prosecco anywhere between 39% and 74%.  For the US, the Italian bubbly is enjoying a meteoric rise as well with The Wall Street Journal quoting 39% and 75% for Shanken News Daily.

Then, shortly after the publication of the article I received a PR release in my inbox directly from the Prosecco DOC Consortium stating the following…

“The Prosecco DOC Consortium (Consorzio di Tutela della DOC Prosecco)—the institution charged with protecting, upholding and promoting the standards of Prosecco DOC— announced that there will not be a shortage of Prosecco in the coming months. The news that was published last week in the UK press outlet, ‘The Drinks Business’ on May 20th, was misleading, according to the Consortium.

The harvest of 2014 was hit with some harsh weather and had an average of over 9% less than the maximum yield. According to the Consortium, this resulted in a total certified production of 17.9% more than the previous harvest, to reaching far beyond the target yield put out by forecasters. The Consortium has also ruled out any significant price increase during the summer. Any small increase will only concern ‘entry level’ productions among lower priced products.

Now comprising 18.5% of total exports, the United States is the third-largest market for Prosecco DOC sales behind the United Kingdom and Germany, respectively. The global demand highlights an increasing interest and demand in Italian sparkling wine with which the Consortium’s productions are prepared to keep up.”

That’s interesting.  I wanted to get some additional information on how the perceived “shortage” came about so I reached out the Consortium and was able to speak with Stefano Zanette, president of The Prosecco DOC Consortium to clarify some of the issues brought up in the original article.  My interview with him is below.

NC: According to your press release the 2014 harvest was actually 17.9% higher than the previous vintage.  Where do you think the misconception came from that the harvest was 50% down in some places?

SZ: In some cases, there very well may have been losses of even more than 50% because of hail or disease, but what we have to look at is the data related to the denomination as a whole, which correspond to that which we have provided. I believe that the need to look at particular details and not at the denomination as a whole is the result of individual wineries’ internal company needs.

NC: The Drinks Business article references negociants playing a large role in determining the shortage.  How big of an influence to negociants have on the Prosecco industry? 

SZ: I don’t think negociants have any particular responsibility in this matter. Obviously, if it is discovered that available volume is less than expected, they had to move accordingly too.

NC: The article also references brokers “holding onto” Prosecco stock.  Since one of the virtues of Prosecco is its fresh youthful style, how much stock to you reasonably think brokers could be holding onto?  It seems that would be very risky for the broker.

SZ:  If people were holding on to stock, that will not be able to last longer than the beginning of the next harvest, which we hope will be more bountiful than last year’s.

NC: What is your opinion on the claim that many of the growing areas of the DOC were “newly planted… and yields were down by half in some cases”?  What would you estimate is the area that has been recently planted or replanted in the DOC?

SZ: The issue of the lower yield generally affected the entire denomination and in a haphazard way in a few territories in particular with no correlation between new and old vineyards. The recently planted or replanted vineyards make up approximately 5%.

NC: Do you also share the opinion that “people love Prosecco because it is uncomplicated and quaffable” and that it shouldn’t be taken too seriously?

SZ: I agree that Prosecco “is uncomplicated” and that it “is quaffable,” but I also believe that it is a product that “must be taken seriously” – 306,000,000 bottles is no joke!

So there you have it folks! We can remain calm on the issue of Prosecco for now.  New Zealand on the other hand might deserve some panic and will be the subject of Part 2 of Why is the Wine Gone? Stay tuned!

 

Header Photo courtesy of the Prosecco DOC Consortium.

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