Video | Middle East situation leads to rising costs; Italian sparkling wine industry faces impact

Ask AI · How is the Middle East situation gradually transmitting shocks to Italy’s sparkling wine industry?

The Middle East situation has remained tense. For Italy’s wine industry, which is highly dependent on exports, the impact of the conflict is not limited to orders alone—it is passed down, layer by layer, to both the production side and the consumer side through shipping, energy, and the prices of raw materials. CCTV correspondent visited Italy’s main sparkling wine production regions and found that as maritime transport is disrupted and costs rise, companies’ profit margins are being squeezed, leaving the industry deeply worried about the future.

In Italy’s northern Veneto region, sparkling wine businesses are highly dependent on overseas markets. Their products must be shipped by sea to Asian, Middle Eastern, and American markets. Recently, due to severe disruptions to shipping in the Strait of Hormuz, some vessels have taken detours, port transport schedules have been thrown off, and some companies have already felt logistic pressure clearly.

In the view of industry associations, compared with short-term changes in orders, greater uncertainty comes from the continued volatility of energy prices. Industry insiders say that higher costs often have a lagging effect. Even if the conflict ends in the short term, the related impact may still last for months.

Chairman of the local sparkling wine industry association, Franco Adami: If this conflict lasts a long time, not only will it be difficult for me to predict what will happen—I think it will be difficult for everyone to foresee. We have to start imagining different scenarios, and we must consider situations where energy and raw materials are not available in sufficient quantities. Therefore, we need to find energy-saving solutions, but these energy-saving measures cannot be achieved within three months.

CCTV correspondent Li Yaoyang: In a globalized supply chain, transportation, energy, and trade are closely linked. For Italy’s sparkling wine industry, which relies on exports, today’s worries are shipping and orders. Even more importantly, looking further ahead, is the constantly rising uncertainty in global trade.