The Italian wine industry is navigating a difficult summer in 2024, and it’s not just the scorching temperatures impacting the year’s harvest. Two significant cooperatives, Moncaro in the Marche and Cantine Europa in Sicily, are grappling with serious financial issues that are shaking the entire sector, with effects extending well beyond their respective regions.
This situation is symptomatic of deeper issues within the Italian wine industry, particularly among its largest cooperatives. The problems these cooperatives face are not just seasonal; they are rooted in structural weaknesses that may necessitate difficult and unpopular decisions. The stakes are high, with the commercial future and global reputation of two iconic Italian white wines, Verdicchio dei Castelli di Jesi and Grillo, hanging in the balance.
The most alarming case is that of Terre Cortesi-Moncaro, a massive cooperative established in 1964 in Montecarotto, at the heart of the Verdicchio dei Castelli di Jesi region. Moncaro is responsible for producing one out of every four bottles of Verdicchio in this appellation, making it the largest winery in the Marche region. With 612 members contributing grapes, 1,300 hectares of vineyards, and an annual production of 10 million bottles, 40% of which are exported, Moncaro is a significant player in the industry.
However, this giant has been struggling with financial instability, accumulating around €25 million in debts to banks and suppliers. The situation has also been dire for the winery’s 58 employees, who went unpaid for some time until unions stepped in to address the issue. The crisis has been attributed to several factors, including rising production costs due to soaring energy and glass prices. Additionally, the downy mildew outbreak last year drastically reduced grape yields for the 2023 harvest, particularly in central Italian regions like Marche and Abruzzo.
Some of Moncaro’s recent investments have also come under scrutiny, particularly the contentious acquisition of the Villa Medoro winery in Abruzzo. This €8.75 million investment aimed to expand production into the Montepulciano d’Abruzzo DOC but has been questioned in light of the cooperative’s mounting financial difficulties.
