The global market for italian sparkling wine

The case explores the competitive challenges and the opportunities for international growth of Prosecco, a low-priced sparkling wine produced in two regions of Northern Italy. Until the end of the 90s, the quality of Prosecco was unreliable and negatively perceived by wine connoisseurs. Thanks to improvement in production techniques and the re-organization of the consortiums of the producers, Prosecco had become a respectable but affordable alternative to Champagne. Volumes and prices had increased rapidly. Prosecco was considered by new generations as an easy-to-drink wine, not only in Italy but also abroad. At the end of 2018, however, it was not clear how Prosecco producers could pursue further growth. The global wine market was mature, due to historical trends toward a healthier lifestyle. The only significant markets with a growing demand were the US and China. Prosecco was already popular in the US, where the market was receptive to the Italian food and wine culture. Prosecco producers had to decide whether to focus on China, a much more challenging market in which only the French wine-makers had been successful, or invest resources in developing the US, UK, and European markets.