American importers are stockpiling Prosecco as a hedge against potential tariffs threatened by President Donald Trump. Shipments of Prosecco surged by 41% in November 2018, far exceeding consumer demand. This precautionary measure is driven by uncertainty surrounding the possibility of tariffs on Italian wines and the anticipation of consumers cutting back on luxury items if prices increase. Italy exports a significant portion of its wine to the United States, making the wine sector particularly vulnerable to tariffs. Prosecco has become the top-selling Italian wine in the U.S., accounting for nearly 40% of all sales.
American importers have been stockpiling the popular Italian sparkling wine Prosecco as a precaution against potential tariffs threatened by President Donald Trump. Shipments of Italian sparkling wine, 90% of which is Prosecco , surged by 41% in November 2018 following Trump's election. This significant increase far outpaced consumer demand, indicating a strategic move by importers to build up their inventory for future sales.
This precautionary measure was driven by uncertainty surrounding the possibility of tariffs being imposed on Italian wines, and the anticipation that consumers might reduce their spending on luxury items like wine if prices rose due to tariffs. While Italian wines were not subject to tariffs during Trump's first presidency, and no tariffs have been announced against European partners to date, Prosecco importers and distributors are taking proactive steps to safeguard the market. Italy exports nearly a quarter of its wine to the United States, making the wine sector particularly vulnerable to potential tariffs compared to other Italian exports. Last year, Italy's wine exports to the U.S. reached 1.9 billion euros ($1.97 billion). Prosecco emerged as the top-selling Italian wine in the United States in 2018, accounting for nearly 40% of all sales. Even before Trump's election, there were signs of market concern, with Prosecco shipments to the United States rising by 17% in the first 10 months of 2018. This growth significantly outpaced the more modest single-digit increases observed in the next two largest markets, Britain and Germany, and considerably exceeded the 0.6% growth in U.S. consumption during that period. Giancarlo Guidolin, president of Prosecco DOC consortium, the largest of Italy's three Prosecco-producing consortia, noted this unexpected surge, suggesting that a buildup of product in warehouses might be responsible. Another contributing factor could be the threat of a port strike in January, according to Dina Opici, chairwoman of the Wine & Spirits Wholesalers of America. While acknowledging the potential impact of the port strike, Opici believes that the anticipation of possible tariffs likely played a significant role in encouraging importers to increase their stockpiles
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