Brunello vs all: the Tuscan DOCG secures leadership in the luxury market in the US

In a bleak year for the Italian wine market, Brunello di Montalcino stands out as a unique success. The data from the DOCG consortium is clear. During the first nine months of 2024, the US wine market experienced a general decline: -8% in volume and -7% in value. Yet, within this context, Tuscan wines—particularly Brunello—defied the trend, achieving an impressive +5% in volume and +1% in value. These figures are even more striking when compared to the performance of still red wines, with Italian reds down 6%, French reds down 8%, and American producers down a staggering 9%. Specifically, in the US market, Brunello has established itself as the undisputed leader in the luxury segment: one in three Italian wine bottles sold at over $50 originates from Montalcino, capturing a 32% market share.

Leadership in the luxury wine segment in the US belongs to Brunello

Brunello’s strength—showcased this week (14-18 November) with a preview of the 2020 vintage—lies in its ability to captivate discerning consumers, consolidating its dominance in the luxury segment. According to data from the UIV Observatory, the greatest value is generated by bottles priced over $50, which account for 71% of the total volume and an astonishing 84% of the value. Driving this success is the off-trade channel, which posted a +10% increase in value, offsetting a 6% decline in the on-trade channel.

Among retail outlets, liquor stores lead with a 63% market share and a 5% growth rate. Even more remarkable is the surge in the club/wholesale channel (+76%), with major chains like Costco serving as key suppliers for both restaurants and consumers.

Horeca sector faces challenges, but hotels shine

The Horeca sector, traditionally a cornerstone for Brunello, is facing a significant downturn, with restaurant sales declining by 10%. However, there are bright spots: sales in hotels have grown by 20%, accounting for 8% of the total value, while the recreation segment—including casinos and sports clubs—has risen by 14%.

According to Fabrizio Bindocci, president of the Brunello di Montalcino Wine Consortium, there is hope that 2024 will remain a transitional year:
"The restaurant sector accounts for 54% of the value of our wine sales, far exceeding the Italian average of 31%. We are hopeful for a recovery with the return of geopolitical and economic stability."

Brunello outperforms key International competitors. Not only does Brunello di Montalcino hold its ground, but it also outperforms its main foreign competitors. The 1% growth in value is even more remarkable when compared to the sharp declines seen by leading French and American wines: Margaux (-23%), Châteauneuf-du-Pape (-30%), Oakville and Howell Mountain (-20% to -27%), and the dramatic -40% drop of California’s Atlas Peak.

The only exceptions among French reds are Bordeaux Supérieur (+4%) and Saint-Émilion (+6%).