{"id":17282,"date":"2024-04-22T09:26:26","date_gmt":"2024-04-22T07:26:26","guid":{"rendered":"https:\/\/winereporter.it\/?p=17282"},"modified":"2024-04-22T09:32:11","modified_gmt":"2024-04-22T07:32:11","slug":"the-unstoppable-advance-of-no-lo-and-the-possible-coexistence-with-traditional-wines","status":"publish","type":"post","link":"https:\/\/winereporter.it\/en\/the-unstoppable-advance-of-no-lo-and-the-possible-coexistence-with-traditional-wines\/","title":{"rendered":"The unstoppable advance of No-Lo and the possible coexistence with traditional wines"},"content":{"rendered":"

There is an ever-expanding 11 billion dollar market that so far features some large and medium-sized wine companies around the world. It is that of the so-called “No Alcohol” and “Low Alcohol” drinks. At the recently concluded Vinitaly it was the hot topic that held sway throughout the four days of the fair. It seemed right to talk about it in these pages too. For brevity we call them “No-Lo”<\/strong> drinks and for descriptive summary we also call them “NoLo Wines”<\/strong> even if we know very well that in Italy the current legislation does not allow them to be defined as “wines”. In this regard, let us remember that there are at least two definitions of wine.<\/p>\n

Legal definition:<\/strong>
\nAccording to EU Regulation<\/strong> 491\/2009 in article XI ter, point 1:
\n“Wine is defined as the product obtained exclusively from the total or partial alcoholic fermentation of fresh grapes, pressed or not, or grape must”.
\nIn simple words, to be considered wine by law, the drink must derive solely from the alcoholic fermentation of fresh (or slightly dried) grapes, without the addition of alcohol, sugars or other foreign elements. The minimum alcoholic strength must be at least 8.5% vol., with exceptions for some areas where it can be even lower.
\nGeneral definition<\/strong>:
\nIn a broader sense, wine is an alcoholic drink obtained from the fermentation of grape juice. This process turns the grape’s natural sugars into alcohol and produces a wide range of flavors and aromas. Winemaking can be highly variable, affecting the color, taste and body of the final wine.
\nIn summary, the definition of wine includes both the regulatory aspect and the more extensive one which establishes the complexity and variety of a drink that moves several billion euros and dollars around the world. Suffice it to say that just to be able to taste some of the most famous bottles, many of us would do something false.
\nBut then why is a market, that of “No-Lo”, expanding parallel to the already known one of “traditional” wines? Simply because it is a market law: if the demand of certain groups of consumers increases (for example the young generations), the offer from small or large wineries also naturally increases. As we will see later, it is the main “actors” in the world of wine who are pushing to expand the entire “No-Lo” supply chain in our country without having to go abroad to “dealerize” a product which has alcohol as its its natural stabilizer.<\/p>\n

The world situation<\/strong>
\nWhat is the state of the art in the global production of alcohol-free drinks?
\nSales<\/strong>:
\n\u2022 $11 billion<\/strong>: the value of the global low and no alcohol wine market in 2022, according to IWSR Drinks Market Analysis. In the USA alone the market is worth a billion dollars
\n\u2022 Growth of 7%<\/strong>: compared to 2018, with a constantly rising trend.
\nTop 10 markets<\/strong> (in purely alphabetical order): Australia, Brazil, Canada, France, Germany, Japan, United Kingdom, Spain, South Africa, United States. It should be noted that China is not included, a country that has yet to “digest” the so-called traditional wines arriving from Europe and which only recently also became a producer.<\/p>\n

There are at least four factors that are driving the constant growth of the “No-Lo” sector:<\/strong>
\nGreater attention to health<\/strong>: consumers are looking for healthier and lower calorie alternatives.
\nAlcohol moderation<\/strong>: growing trend towards moderate alcohol consumption or abstention.
\nNew consumption opportunities<\/strong>: low and no alcohol wines adapt to moments and social contexts where alcohol consumption is limited (see gatherings of young people, pregnant women, religious prohibitions or ethnic habits, driving vehicles, etc.).
\nProduct innovation<\/strong>: wineries invest in research and development to improve the quality and variety of low and no alcohol wines.
\nThe sector is still very fluid, so much so that the definition and regulations on low and no alcohol wines can vary from country to country.<\/p>\n

There are numerous companies around the world that are specializing in the production of low alcohol and no alcohol wines, with a constantly evolving panorama. Among these we mention just a few of the largest: the Californian E. & J. Gallo<\/strong> which offers a line of low alcohol wines called “Barefoot Refresh” and alcohol-free wines under the “Arbor Mist” brand; the French G\u00e9rard Bertrand<\/strong> which produces a range of low alcohol and no alcohol wines called “N\u00b04” at around 15 euros per bottle; Trinchero Family<\/strong> Wines, another Californian company with its low alcohol line “Sugar Cellars”; Fresno State University, which produces low alcohol and no alcohol wines under the “Fresno State Wines” brand for educational and research purposes; the Spanish cooperative Ribera del Duero<\/strong> with its no-alcohol products under the “Le Naturel” brand.<\/p>\n

But there is also no shortage of small and medium-sized wineries: Ariel Wines<\/strong> (California), Giesen Wines<\/strong> (New Zealand) with its line of low alcohol wines, \u201cThe Nine Sauvignon Blanc”, Martha’s Vineyard<\/strong> (Massachusetts – USA), St. Agil Vineyards<\/strong> (Australia), Legutio Wines (Spain).
\nNo alcohol wines, more than low alcohol wines, cost slightly more than traditional wines, precisely because producers have to amortize the higher costs imposed by the supply chain.<\/p>\n

The situation in Italy<\/strong>
\nWhat is certain is that the production of “No-Lo” in Italy is a complex issue that straddles innovation and regulatory obstacles. The existence, here too, of a growing demand from consumers for this type of product is undeniable. Italian wineries are responding to this type of market demand with technological innovations that allow the production of high-quality low-alcohol and no-alcohol wines, preserving the organoleptic characteristics of the wine.
\nThe new Common Agricultural Policy<\/strong> (PAC) 2023-2027 of the European Union<\/strong> has given the green light to the production and marketing of partially alcohol-free wine in the European Union, with the possibility of using the term “wine” on the label.
\nItalian legislation on wine, however, is still restrictive<\/strong> and does not allow low alcohol and non-alcoholic wines to be defined as “wine”.
\nThis creates a paradox whereby production is permitted at a European level, but the denomination “wine” is precluded at a national level. The Ministry of Agriculture<\/strong>, at the moment, does not seem willing to change the current national rules because it intends to “focus on increasing the quality of the wines produced”.
\nAccording to the research presented at Vinitaly<\/strong> just concluded by the Italian Wine Union (UIV)<\/strong> and SWG,<\/strong> in our country 36% of consumers are interested in consuming alcohol-free drinks<\/strong>.
\nTherefore, the UIV has long been calling for regulatory intervention to regulate the production of low alcohol and no alcohol wines in Italy, in order to enhance the work of the wineries and protect consumers.
\nAccording to Swg, the share of attention towards alcohol-free wines (21%) is higher in the younger age groups (28% from 18 to 34 years),<\/strong> the target with the greatest reduction in wine consumption which in 79% of cases declares “important \u201d if not \u201cvery important\u201d or \u201cfundamental\u201d to be able to reduce the problems linked to alcohol abuse by making zero or low alcohol products available to consumers.<\/p>\n

Another fact should not be overlooked. According to the president of Agivi, Marzia Varvaglione: \u201cGeneration Z<\/strong> is showing great attention towards a typology capable of responding to an increasingly numerous sober curious audience, in the United States and around the world. Italy must be able to understand first of all on a cultural level that one product does not replace another and insist on experimentation that can yield very interesting results”.<\/em>
\nAccording to the focus of the UIV Observatory, the decline in consumption of Italian wine in the USA<\/strong> (-13% imports by volume in 2023<\/strong>) is dictated primarily by the so-called health wave of the young generations, as well as by the strong competition from new drinks low alcohol and a demographic issue which sees the white population decreasing in favor of other ethnic groups, starting with Hispanics, who are culturally less oriented towards traditional wine consumption.<\/p>\n

This is certainly an incomplete list (continuously updated) of Italian wineries that produce low alcohol and no alcohol wines: Zonin 1821<\/strong> with the “1821 ZERO” line, Hofstatter<\/strong> with the “Hofstatter Null” line, Schenk<\/strong> with the “Senza Alcol” line, and then Argea, Varvaglione, Mionetto, Bosca<\/strong> and Doppio Passo.<\/strong><\/p>\n

Ultimately, those who have invested capital in the wine sector consider the production of low alcohol and no alcohol wines an emerging segment in the Italian wine scene, with significant growth potential in the coming years. The evolution of the regulatory framework and the continuous improvement of production techniques will be key factors for the success of this increasingly large slice of the market that meets consumer demands.<\/p>\n

World markets are in continuous, inexorable evolution. Therefore we can imagine a near future with two possible scenarios:
\nScenario A<\/strong>: traditional wines and the so-called “No-Lo wines” are destined to coexist, broadening the consumer base and bringing new resources to wineries, which will be able to invest them in research and improving the production of alcoholic and high-quality wines . The new consumers, initially attracted by the “No-Lo”, will sooner or later be convinced to try the real wines too.
\nScenario B<\/strong>: the so-called “no-Lo” wines risk eroding the market for traditional wines, leveraging the changing tastes of the new generations and the push towards alcoholic moderation.
\nAll that remains is to pour a good red wine into the glass and wait for events to evolve.<\/p>\n","protected":false},"excerpt":{"rendered":"

There is an ever-expanding 11 billion dollar market that so far features some large and medium-sized wine companies around the world. It is that of the so-called “No Alcohol” and “Low Alcohol” drinks. At the recently concluded Vinitaly it was the hot topic that held sway throughout the four days of the fair. It seemed […]<\/p>\n","protected":false},"author":2,"featured_media":17284,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[285],"tags":[537,542,541,540,543,536,539,538,44],"class_list":["post-17282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wine-economy","tag-alcohol","tag-coexistence","tag-consumption","tag-european-union","tag-markets","tag-no-lo","tag-uiv","tag-vinitaly","tag-wine"],"yoast_head":"\nThe unstoppable advance of No-Lo and the possible coexistence with traditional wines | Wine Reporter<\/title>\n<meta name=\"description\" content=\"Read The unstoppable advance of No-Lo and the possible coexistence with traditional wines on Wine Reporter. 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