"Dealcoholised? We are ready to invest in Italy too" In Zonin1821's financial report, no-low wines gain ground

The large-scale retail sector is showing increasing interest in dealcoholised wines, and at the same time, the possibility of launching production in Italy for no-low alcohol wines is growing. This is according to Pietro Mattioni, CEO of Zonin1821, the historic Venetian group that in 2024 saw its wine sales revenue rise from €195 million to €210 million. In an interview with Tre Bicchieri, the Gambero Rosso weekly magazine, Mattioni assessed the progress of the no-low category two years after the launch of two dealcoholised labels at Vinitaly 2023. He reflected on the role of new consumers and the growth potential of this specific segment, which Italy can now leverage as an additional asset in international markets—particularly as modern retail is showing growing interest, as revealed by insights gathered by Gambero Rosso in recent months.

Let’s start with your experience with dealcoholised wines.

At Vinitaly 2023, we introduced two innovative products under the Zonin brand: Limoneto Spritz and a dealcoholised wine now known as Zero Zonin. Over the past two years, we have invested heavily in improving the taste—one of the key factors, along with price and distribution, in establishing these products as part of consumers' regular drinking habits.

How have sales performed over the past two years?

Our dealcoholised wine has primarily found a market in Europe, particularly in the Baltic countries, Germany, Austria, and the UK. In 2024, we also began distribution in other strategic markets such as the United States and Canada.

Do you plan to shift production to Italy, as other players like Schenk Italia have announced?

From a production standpoint, we are currently focusing on research and development to enhance the organoleptic qualities of Zonin Zero and maintain the high quality that both the market and consumers have come to expect from us. If the consumption trend continues to grow, as it has in recent years, we do not rule out the purchase of a dealcoholisation machine, considering the promising advancements in dealcoholisation techniques and technologies.

What is your outlook for 2025?

For 2025, we anticipate a positive growth trend, supported by an expanding distribution network and greater shelf presence.

Who are the consumers of your no-low products?

Our consumers, often Millennials and Gen Z, are not only those who dislike alcoholic beverages or abstain for health or cultural reasons. More importantly, they are people who do drink alcohol but choose not to on certain occasions—for example, to reduce the overall alcohol intake of their drinking experience.

How important is it that Italy now has a dedicated regulatory framework?

Italian producers will now have the ability to produce and market dealcoholised wine domestically. This is a crucial development: given the growing trend, it is essential that our country and its businesses capitalise on this emerging consumer phenomenon. This will allow Italy to continue shaping and evolving its winemaking culture while avoiding a competitive disadvantage compared to countries like Spain and Germany, where production has been permitted for years. Until now, Italian operators could produce dealcoholised wines, but they had to carry out the process in third countries where the practice was allowed—an approach that significantly impacted production costs and shelf prices.

Do you see a risk of cannibalisation compared to traditional wine?

Dealcoholised wines represent an evolution of our company’s cultural heritage, adapting to meet new consumer demands. They are not in competition with traditional wines; as confirmed by research and feedback from our commercial partners, on shelves, they compete with other non-alcoholic beverages rather than conventional wines.

Have you noticed any changes in the Italian market?

In major international markets, IWSR studies predict continued growth for the so-called no-low wine category in the coming years. In Italy, we are observing increasing interest from large-scale retail partners—an encouraging sign that suggests potential growth in the domestic market as well.

Now let’s look at the 2024 financial results. How has the year gone?

We closed 2024 with revenues of approximately €210 million, up from €195 million in 2023. Despite a slowdown in the wine sector in 2024, we outperformed the market, achieving organic growth of 10%. This is an extremely positive result, demonstrating the strength of our management and commercial teams, the relationships we have built over the years with our partners, and the continued appreciation of our diverse, all-Italian wine portfolio.

Your operations are primarily international. How have they performed?

With 85% of our revenue coming from exports across multiple markets, we are not reliant on any single region. This shields us from fluctuations in local consumption trends or economic shifts in individual countries. In 2024, our key markets remained:

• Americas (around 30%, with strong presence in the US and Canada)
• United Kingdom (around 20%)
• Italy (around 15%)
• Other European markets (around 15%)
• CIS region (around 5%)
• Asia (around 5%)

What trends have you observed in terms of volume?

The number of bottles sold remains stable at around 50 million, in line with 2023 levels.

Finally, how have individual brands performed?

Among our diverse range of wines and varietals, Zonin continues to be the global ambassador of Made in Italy, thanks to its presence in over 100 countries. Our regional brands have also made significant contributions to overall revenue—such as Castello del Poggio in the United States and Ca’ Vescovo in Italy—by catering to specific geographic consumer preferences with highly competitive positioning. Lastly, our premium estate wines continue their upward trajectory, driven internationally by Ca’ Bolani and Castello di Albola.