Schenk Family Moves Non-Alcoholic Wine Production to Italy

8

Schenk Family Italia shifts non-alcoholic wine production from Spain to Italy, seizing new opportunities in a growing market. Discover the details!

Introduction

The recent approval of a decree allowing the production of non-alcoholic wines in Italy has sparked interest among producers. One notable company, Schenk Family Italia, has announced its decision to move its production facilities from Spain to Italy. This strategic shift comes at a time when the demand for low and no-alcohol beverages is on the rise. With this transition, Schenk aims to enhance its market presence and operational efficiency within Italian borders.

New Opportunities in Italy

Schenk Family Italia has been involved in non-alcoholic wine production for some time now, with previous operations based in Spain producing between 50,000 and 80,000 bottles annually. Approximately 25% of these products were sold within Italy. The shift to local production promises significant advantages, as noted by Daniele Simoni, CEO of Schenk Family Italia. By eliminating the costs associated with exporting wine for de-alcoholization and then re-importing it, the company anticipates increased competitiveness in this niche market.

However, Simoni also highlights that non-alcoholic wines currently represent only about 2-3% of total wine production in Italy. This statistic underscores both the potential for growth and the challenges ahead. The focus will need to be on attracting consumers who may not typically consume wine but are looking for social alternatives or healthier options.

The Rise of No-Low Alcohol Beverages

The global trend toward no-low alcohol beverages is gaining momentum. Countries such as Denmark, Belgium, Germany, France, and the Netherlands show increasing consumer interest in products with little to no alcohol content. According to industry reports from London’s Iswr Institute, there is an expected growth of $4 billion in this market segment by 2028 across major markets like Australia, Brazil, Canada, France, Germany, Japan, Spain, South Africa, the UK, and the USA.

Simoni points out that while technology has improved the quality of de-alcoholized wines significantly over recent years, there remains a noticeable taste difference compared to traditional alcoholic wines. Convincing consumers who typically prefer more conventional beverages will be essential for expanding this sector.

Overcoming Market Challenges

As Schenk prepares to navigate this evolving landscape of non-alcoholic wines in Italy, it faces several challenges. One major hurdle is appealing to consumers who might otherwise opt for cheaper alternatives that are less natural than de-alcoholized wines. The key lies in marketing these products effectively as high-quality alternatives that retain many characteristics of traditional wines.

Schenk plans to utilize economies of scale resulting from local production which will allow them to invest more into marketing their offerings effectively within Italy and beyond. This strategy aims not only at enhancing brand recognition but also at cultivating consumer trust through quality assurance.

Conclusion

With Schenk Family Italia’s move to relocate its non-alcoholic wine production from Spain back into Italy following recent regulatory changes represents a pivotal moment for both the company and the industry at large. As awareness around health-conscious drinking continues to grow globally alongside technological advancements in beverage production methods,
Schenk is well-positioned to become a significant player in this burgeoning market sector by tapping into local resources while maintaining quality standards.

Photo by Vindemia Winery on Unsplash