PROSECCO REPORT
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PROSECCO’S RAPID RISE PROSECCO’S APPEAL IS BEING DRIVEN INTO THE STRATOSPHERE, AS ANDREW GRAHAM DISCOVERS.
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n the words of cultural icon Paris Hilton, Prosecco is ‘so hot right now’. One of the fastest growing segments in the wine industry, Prosecco has enjoyed three consecutive years of growth averaging near 50 per cent per annum (according to IRI figures), which is second only to rosé. Despite the rampant success, this is also a segment that is carefully poised, with locally made Prosecco under considerable threat from political issues and global production struggling to keep up with demand. Further, while still seen as a premium Champagne alternative, recent moves towards RTD-like blends and convenient packaging suggest a market that is in a fascinating state of flux. But will the future of Prosecco be as a premium sparkling or a cider-esque daily drink?
AUSTRALIAN PROSECCO – THE EARLY YEARS Unsurprisingly, Prosecco’s history in Australia has a strong Italian accent. While Italian Prosecco has been imported for some time, it took until 1999 for a locally produced example to break cover – and it was an Italian who did it. Otto Dal Zotto (from Dal Zotto Wines) was brought up in the home of Prosecco, Valdobbiadene in northern Italy. He always thought that the King Valley had many similarities to his homeland and always wanted to make Prosecco there.
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By chance, Dal Zotto and family discovered that 19 years previously a fellow Italian migrant had already brought the variety to Australia and was willing to spare some cuttings. It took another five years for the first vintage of Prosecco to be released, finally unveiled in December 2004. Since then, the King Valley has become the undisputed centre of the $60 million Australian Prosecco market, with the Valley taking over half of that. More than just a production centre, the King Valley producers have also created a celebrated wine and food trail known as the Prosecco Road. One of the key drivers of the Prosecco Road alongside Dal Zotto is Brown Brothers, which is also the undisputed heavyweight of Prosecco production in Australia. For the second consecutive year, Brown Brothers has been the biggest driver of Prosecco growth too, accounting for 30 per cent of growth (IRI March 2018) across four different product lines. As ever with the restless team at Brown Brothers they’re not focusing solely on Champagne competitors either, with the family recently releasing their category hopping Prosecco-based Prosecco Spritz in a can. They’re not alone either, with one of Australia’s biggest brands, Jacob’s Creek, also embracing this Prosecco-based style with immediate results. Pernod Ricard Winemakers’ Global Marketing Director for Australian Brands, Derek Oliver,
explains: “We launched Jacob’s Creek Prosecco Spritz in July 2017 in Australia. Within a year of launch, Jacob’s Creek Prosecco Spritz became the number one premium and sparkling wine innovation by volume and value.” Despite this rampant popularity, Prosecco is still seen at Pernod to be a quality sparkling wine, as Oliver explains. “For Jacob’s Creek we see a bright future for Prosecco and the focus will (continue) to be on premium offerings for our consumers,” he said. And it doesn’t stop with Jacob’s Creek, Australian Vintage Limited (AVL) is also seeing strong demand for Prosecco. Scott Burton, General Manager, Marketing at AVL, explains: “Prosecco is taking Australia by storm, just as it has done in the UK and US markets. Sales have rocketed up and we are definitely seeing an uplift in demand as a result.” Interestingly, this is a product that is popular in on- and off-premise, as Burton notes. “In the on-premise channel, Tempus Two Copper Series Prosecco is the number one selling wine in the portfolio, reflecting the change in consumption from special occasion to becoming part of a drinker’s regular repertoire.” For Calabria Family Wines, their Prosecco story has been driven by an Italian make in a joint venture that has proven very popular. Elizabeth Calabria-Staltare believes that the trend can be viewed in the context of Moscato. “Trends are showing that wine drinkers are looking for a light dry sparkling wine with
