Has the Prosecco Bubble Burst?
UHY Hacker Young has reported that demand for prosecco in the UK has slowed. ...Back to News and Events
UHY Hacker Young has reported that demand for prosecco in the UK has slowed. Although sales rose by 5% last year, this was the smallest growth in demand for six years.
Prosecco’s rise in popularity in the UK has been stark. From 2013 – 2014, prosecco consumption in the UK doubled. By 2016, the UK was consuming one third of all prosecco produced. So, have we just had our fill of the Italian sparkling wine? Or are there other reasons for the slowing demand?
Some have sought to blame the weakness of the pound against the euro for the rise in prices. Conversely, some say that the market has been flooded with inferior products, thus lowering the price but removing the “luxury” tag previously held by the sparkling wine.
Prosecco is only produced in the Veneto region of Italy and involves a costly method of production, so cutting production costs would be difficult.
It would appear that prosecco producers must now decide whether to bow to the demand for cheaper prices, or to pitch their product as a “luxury” option.