Ep. 2527 Unearthing Italy’s hidden gems: sourcing & positioning small-batch grower wines | wine2wine Vinitaly Business Forum
Episode 2527

Ep. 2527 Unearthing Italy’s hidden gems: sourcing & positioning small-batch grower wines | wine2wine Vinitaly Business Forum

wine2wine Vinitaly Business Forum

November 15, 2025
1660.8915
Not explicitly mentioned
Wine Market

Episode Summary

**Content Analysis** **Key Themes** 1. **Distribution as the Critical Bottleneck** — The most important leg of the three-legged stool (winery, importer, distributor); without the right distributor, market entry is severely constrained.[1] 2. **Market Contraction and Structural Challenges** — The US wine market faces unprecedented headwinds: 67% reduction in distributors since 1995 (3,000 to ~1,000), 100,000+ new wine labels annually, declining consumption, and weakening currency exchange rates.[1] 3. **Strategic Market Selection Over Scale** — New importers should target specific regional markets with strong potential rather than attempting national expansion, as largest markets are harder to penetrate and some states have sticky distribution dynamics.[1] 4. **Relationships and Management Systems Trump Promotion** — Success depends on consistent communication, clear objectives, pricing strategy, inventory control, and dedicated market management—not expensive events or incentives.[1] 5. **Storytelling and Authenticity as Competitive Advantage** — Positioning wines through producer stories, family heritage, and regional diversity, rather than scores or ratings, resonates better with modern consumers and creates lasting differentiation.[1] **Summary** Brian Larkey (Dalla Terra Direct founder) and Roberto Bruno (Fontana Fredda CEO) discuss navigating severe challenges in US Italian wine importation. The market has consolidated dramatically—fewer than 1,000 distributors now serve hundreds of thousands of wine labels, creating a constriction point for importers. While US consumption is declining 6-8% annually due to shifting demographics and economic contraction, long-term opportunity remains for those who execute strategically. Key success factors include selecting target markets carefully rather than pursuing national scale immediately, finding reliable distributor partners willing to invest in your portfolio, establishing robust management systems and communication protocols, and marketing wines through authentic storytelling rather than point scores. Payment reliability and understanding distributor financial stability are critical risks in the current environment.[1] **Key Takeaways** - **Distribution is irreplaceable** — Focus on securing the right distributor partnerships before scaling; they are harder to replace than wineries or importers and determine market success.[1] - **Be strategic about geography** — Start in markets where you can gain traction and build momentum rather than competing in saturated major markets where attention is impossible to secure.[1] - **Invest in market management** — Dedicate resources to daily communication, relationship-building, and performance tracking with distributors; this matters more than promotional spending.[1] - **Understand financial risk** — Verify distributor stability and payment capability; consolidation and closures can eliminate years of relationship-building overnight.[1] - **Position through authenticity, not points** — Market wine portfolios by highlighting producer stories, regional diversity, and family heritage rather than relying on numerical ratings or competitive comparisons.[1] - **Plan for long-term building** — Establish clear business objectives early, front-load organizational structure investment, and expect decades of gradual growth before reaching significant scale.[1] **Notable Quotes** - "Distributors are the key and you can't really do much without the right one. And different distributors are right for different things."[1] - "I think it comes down to management, a 100% of it. It's I don't care what wines you have. Nothing is easy to sell. Everything is going to take that attention to detail."[1] - "I think there's plenty of room for it. I think things are challenging out there today. But at the same time, I think there's a lot of opportunity for those people who understand what's ahead of us and are able to steel yourself for the long run."[1] **Follow-up Questions** 1. What specific metrics or data points should new importers track with distributors to identify problems early before payment or placement issues escalate?[1] 2. How should importers prioritize between maintaining existing distributor relationships and seeking new distribution partners in underserved regional markets?[1] 3. What role does direct-to-consumer (DTC) sales play in the current market as a complement to or alternative for traditional distribution channels?[1]

About This Episode

The speakers discuss the challenges of the wine industry and the need for a new international wine club route to market. They emphasize the importance of finding the right distributors and partners to bring new wines and brands to the US, as well as investing in people and teams to make successful business. They emphasize the need for diversity in the marketplace and the importance of personal relationships with distributors in achieving profitability. The speakers also emphasize the importance of communication and management in achieving profitability and emphasize the need for attention and building a strategy for different markets.

Transcript

What kind of, you know, do you feel is the best resource? You know, anything from a database to just networking to kinda find new distributors for other markets. I think that, distribution is the key to all this. As I said in that three legged stool example, distributors are the KEYWORD you can't really do much without the right one. And different distributors are right for different things. So if you're starting small and you wanna work in a few in a few areas, I would even start with picking the right the right states, the right markets. Certain markets you're gonna be more successful in than others. It's really hard to go into a markets, the biggest markets, and try and be successful and get any attention out there. So for me, it'd be more about attention. It'd be more about, blocking and tackling and having a strategy where I wanna be in these states, and that's why. Welcome to the Wine to Wine in Italy Business Forum twenty twenty five Chicago edition, where global wine professionals share insights, strategies, and inspiration from this year's conference. Let's dive into today's session and explore the ideas shaping the future of art. Welcome, everyone. Thanks for joining us for this new session of the ITA track dedicated to the wine, to the wine business, to the wine industry. And, today, I'm very happy to welcome a celebrity in the American in the American wine industry and in the import of Italian wines to US. He's a winemaker. Probably only few of you knows that he is a winemaker. And he started his career in Napa Valley, of course, where he come from. But probably only few of you knows that he started his career of winemaker in Italy as a knowledgeist at a very prestigious winery, which is still part of your portfolio, by the way. After five years, almost five years, he came back to United States. It was 1990, and, his focus was in a way the shift between being a winemaker and started becoming an importer of Italian wines. In that year, he had, this kind of vision and, he decided to found Dalla Tera Direct, a business model which was something revolutionary, something very pioneering. A model based on a connection between wineries and The US distributors, minimizing the importers footprint. This was the original idea behind this great project. Now, this year is celebrating the thirty fifth anniversary, and actually I have to take a bottle of sparkling wine at the end for the celebration, by the way. And so today, we will have the chance, thanks to him, to understand better which was the vision behind this project. And the title of this, session is clear. But we would like to understand from, him how his vision can apply today in this kind of critical challenging environment that we are experiencing. So welcome, everybody. Welcome, Brian Larkey. Grazie. Grazie, Roberto. Prego. Prego. Now, Roberto didn't really get much of an intro, so I've got to say a couple KEYWORD about him. One of the true leaders in Italian wine today, One of the leaders who who is currently the CEO, not just of Fontana Freida, but the entire group. I asked him today how many wineries they he coordinates and runs. 14 different wineries throughout Italy, including global sales. So that's a huge hat, a lot of responsibility, and I think it's great that we got paired up together today. So we've known each other for years, lots and lots of respect. And, his perspective, my perspective, I think today we're really here to respond to the questions today. So I've got a presentation prepared, but I didn't really know who I was making the presentation for. So I'm gonna we'll do a little poll to see who who's here today. Yes. How many people are Italian wineries wanting to come to The United States? This was a nice, nice pool. Two. Okay. How many people love Italian wines. One day they went to a restaurant, they had a great bottle of wine, they thought, I can do this. I wanna bring some wines in The United States. One. Really? Two. Okay. So if you're not here to sell wine to The United States and you're not here to buy one and bring it into The United States, give me a dis because I'm gonna tailor this talk to this group. Right? So who are we? Give me an idea. What group did I not mention? People who love to drink wine. Okay. We got a lot see, everybody here is a winery. On prem retail. So you're a couple steps away from how it gets into, how it gets in The US. Okay? Restaurants. Okay. Italian wine lover over there. Our distributor in Nevada. So you don't really Yeah. We're gonna propose things to you, but you're not necessarily on the forefront of figuring out what comes over here. And another distributor from Florida. Just to give you an idea of kind of who came to this. I figured it'd be 90% Italian wineries from here that wanted to come to The United States. Boy, was I wrong. Are you Italian? Not Italian. So we've we've got a a good mix, a good group here. What I thought I would do is we'll start off with giving you a little bit of background. And, essentially for Italy, people that are in the Italian wine business, it's usually one of two stories. Oh, I just came back. I had this amazing romantic experience sitting in this little trattoria, And I fell in love with Italy. And I wanted to bring it home with me. Or the other story, I was in this really wonderful trattoria in Miami. And I thought to myself, wow, if Brian brought on these wines, I bet I could sell them too. Business either as an importer or as a local distributor. And so, what today's talk was about initially is giving you guys some background, some understanding so we're all starting in the same place in terms of what The US market is like. And understanding that, then we can move forward because I wanna make sure that everyone's clued in. So basically, we're all here because we love Italy. We're all here because we fell in love with Italian wines. And, not just with the wines, but with the people, with the culture, with the foods of Italy. And there's no bigger love affair than between The US market as a whole and Italy. It's Italian style. It's Italian design. It's Italian food and wine, obviously. And this has been a huge part of American entertainment for fifty years, at least. You know, after you know, after World War II, you know, in the '50s and '60s, people began to look into it. By the time the '70s and the '80s, we were on fire. Italy was on fire, and it's only been going up from there, from the eyeglasses to the shoes that people wear that they're near. It's all Italy all day long and I would never worn this jacket otherwise. I mean, it's just So, we are in love with Italy but there's a huge opportunity here but it's gonna take the right kind of individuals moving forward. I don't think we've ever seen a more difficult, more challenging market than we have today. Challenging in all respects. Demographics are shifting. Economics are shifting. And the entire marketplace is currently on a on an escalator, and it's going down. It's going down. The market is going down. So all things in The US are in a pendulum. Everything swings. And I think that our pendulum goes relatively slowly. I think it'll be a few years, this until things begin to pick up again. So let's understand a little bit better about what's going on. But essentially, there's going to be winners and losers at the end of this. You know, five years from now, there'll be a lot of different players in the marketplace. This is what I fed into AI, and this is what came out. I love this. Market learnings of America for make benefit. Glorious nation of Italia. Obviously, Borat was my coach on that one. But, that's a lot of what we're here to cover today. So just as an overview of what's going on in The US right now, it's incredibly challenging for selling Italian wines, not just in The United States, but around the world. Italy, all of Europe, Asia, everything is a big challenge these days. Challenge for us as importers and distributors, restaurate