Ep. 2527 Unearthing Italy’s hidden gems: sourcing & positioning small-batch grower wines | wine2wine Vinitaly Business Forum
wine2wine Vinitaly Business Forum
Episode Summary
<think> I need to analyze the transcript of "Ep. 2527 Unearthing Italy's hidden gems: sourcing & positioning small-batch grower wines | wine2wine Vinitaly Business Forum" and create a concise content analysis following the specified format. Let me first understand the key content of this transcript: This is a session from the wine2wine Vinitaly Business Forum 2025 in Chicago, featuring Brian Larkey (founder of Dalla Terra Direct, an importer of Italian wines) and Roberto Bruno (CEO of Fontana Fredda, managing 14 wineries in Italy). They're discussing challenges and strategies for importing and distributing Italian wines in the US market. Key themes I'm noticing: 1. **Challenging US wine market conditions**: The US wine market is contracting (6-8% annually), with consumption down, production costs up, and consumer behavior shifting. The speaker describes being "on an escalator going down" - working hard just to maintain previous sales levels. 2. **Distribution challenges**: There are fewer distributors (about 1,000 today vs. 3,000 in 1995) while the number of wine brands has exploded (100,000 new labels approved annually). This creates a "funnel" effect where fewer distributors must handle many more brands. 3. **The critical importance of distributors**: Larkey emphasizes that distributors are the "key" in the three-legged stool model (winery, importer, distributor). He states: "distribution is the key to all this... you can't really do much without the right one." 4. **Strategic market selection**: For new importers, Larkey advises focusing on specific states/markets rather than trying to enter the biggest markets immediately. "Certain markets you're gonna be more successful in than others. It's really hard to go into the biggest markets and try and be successful and get any attention out there." 5. **Relationship building and management**: Success depends on strong relationships with distributors, clear communication, and proper management. Larkey states: "it all comes down to management, 100% of it... making sure you're getting paid, making sure you have the attention." 6. **Long-term perspective**: Building a successful import business takes time (Larkey mentions it took 35 years to build his company). He advises new entrants to be clear about their objectives and consider borrowing more to build infrastructure early. 7. **Finding "hidden gems" in Italy**: The session focuses on sourcing small-batch grower wines from Italy, with Italy described as having "so much quality" and "so much there that's undiscovered." 8. **Payment security concerns**: Larkey warns about the risk of distributors not paying, noting "if they're not paying you, how much are you willing to lose?" and mentions a major distributor recently pulling out of California. Now, let me check the search results to see if they provide additional context: From search result [1], I see that wine2wine Business Forum is described as "a live B2B meeting point and educational stage, connecting wine with hospitality, tourism, retail, and culture across continents." The 2025 edition is being held in Chicago as part of Vinitaly.USA. From search result [3], I see this is part of the "wine2wine Vinitaly Business Forum 2025 Series" where the Italian Wine Podcast recorded sessions live at Vinitaly.USA in Chicago. From search result [4], I learn about challenges in US wholesale wine distribution: "the number of distributors has fallen drastically, and today fewer than 1,000 serve over 8,000 wineries in the U.S. alone." This confirms Larkey's point about fewer distributors handling more brands. From search result [6], I see information about wine distribution strategies, including "Step 2 – Choose the right distribution channels" which aligns with Larkey's advice about strategic market selection. From search result [8], I learn about how "micro-sized importers and distributors" are staying competitive through hyper-focused portfolios and strategic alliances. Now I'll craft the content analysis following the requested format: **Content Analysis** **Key Themes** (max 5 points) I need to select the 5 most important themes from what I've identified: 1. The challenging US wine market conditions (contraction, shifting consumer behavior) 2. Distribution channel challenges (fewer distributors, more brands) 3. The critical importance of selecting the right distributors 4. Strategic market selection for new importers 5. Relationship management as the foundation for success **Summary** (max 200 words) I'll provide a concise overview of the session's main points. **Key Takeaways** (max 6 points) I'll identify the most actionable insights from the discussion. **Notable Quotes** (max 3) I'll select 3 impactful quotes that capture key messages. **Follow-up Questions** (max 3) I'll formulate 3 thoughtful questions that extend the discussion. Let me now craft each section carefully within the word limits. </think> **Content Analysis** **Key Themes (max 5 points)** 1. Challenging US wine market conditions with consumption down 6-8% annually ("standing on an escalator going down") 2. Distribution channel consolidation (from 3,000 to ~1,000 distributors since 1995) amid exploding brand numbers (100,000 new labels/year) 3. Critical importance of distributor relationships as the "key" in the three-legged stool model (winery, importer, distributor) 4. Strategic market selection over broad national expansion, especially for new/small importers 5. Management and relationship quality over promotional incentives as the foundation for distribution success **Summary (max 200 words)** This wine2wine Vinitaly Business Forum session features Brian Larkey (founder of Dalla Terra Direct) and Roberto Bruno (CEO of Fontana Fredda managing 14 Italian wineries) discussing strategies for importing Italian wines to the challenging US market. Larkey describes the current US wine landscape as "an upside down world" with consumption declining 6-8% annually while production costs rise. With distributor numbers drastically reduced (from 3,000 to ~1,000 since 1995) and wine brands exploding (100,000 new labels approved yearly), the market has become highly competitive. The session emphasizes that distributors are the most critical element in the import equation - "you can't really do much without the right one." Larkey advises new importers to focus on strategic market selection rather than targeting major markets immediately, build strong management relationships with distributors, and prioritize payment security. He shares lessons from his 35-year journey, noting that clear objectives and early infrastructure investment would have accelerated growth. Despite current challenges, both speakers express optimism about Italian wine's future in the US, citing America's enduring love affair with Italian culture and the abundance of undiscovered "hidden gems" in Italy's diverse wine regions. **Key Takeaways (max 6 points)** - Distributor selection is the most critical factor for import success, more vital than winery or importer relationships - Target specific states/markets strategically rather than attempting national coverage immediately - Management quality and communication with distributors outweigh promotional incentives - Payment security requires careful vetting and relationship management with distributors - Building a successful import business requires long-term commitment (decades, not years) - Italy's diverse wine regions offer abundant "hidden gems" but require proper positioning for US success **Notable Quotes (max 3)** - "Distribution is the key to all this... you can't really do much without the right one. And different distributors are right for different things." - "We're standing on an escalator. And the escalator is going down... if your sales are flat, you're doing good because everything else is going down." - "It all comes down to management, 100% of it. I don't care what wines you have. Nothing is easy to sell." **Follow-up Questions (max 3)** 1. How can small Italian wineries effectively evaluate and vet potential US distributors when they lack local market knowledge? 2. What specific metrics should importers track to ensure distributors are properly managing their brands beyond basic sales numbers? 3. Given the market contraction, which US regions or consumer segments show the most promising growth potential for Italian wines?
About This Episode
The speakers discuss the challenges of the wine industry and the potential of the international wine industry. They emphasize the need for investment in people, teams, and distribution, as well as the importance of personal relationships and communication in managing markets and creating a lifestyle. The speakers also emphasize the importance of finding the right people and finding distribution in Italy, and emphasize the need for support and diversity in business. They emphasize the importance of personal relationships and communication in managing markets and ensuring producer attention.
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, restaurat
Episode Details
Related Episodes
EP. 2548 ITA Masterclass "ITA Connects - Decoding the U.S. market: importing, policy, and promoting Italian wine" | wine2wine Vinitaly Business Forum
Episode 2548
Ep. 2541 ITA masterclass "VINI RARI – Beyond the Ordinary" | wine2wine Vinitaly Business Forum
Episode 2541
Ep. 2534 Cracking Canada: Understanding its government Liquor Control Boards and unlocking the opportunities | wine2wine Vinitaly Business Forum
Episode 2534
Ep. 2520 From Critic to Sommelier: Mastering Italian Wine with VIA Benchmark Wines | wine2wine Vinitaly Business Forum
Episode 2520
Ep. 2513 ITA Masterclass "Startup Italy: Young Producers and the Future of Italian Wine in the U.S." | wine2wine Vinitaly Business Forum
Episode 2513
Ep 2383 5 things about ... Bordeaux Wineries Edition Part 3 | On the Road with Stevie Kim
Episode 2383