Australian Prosecco producers fight for naming right

Australian wine producers have visited Parliament House in Canberra today (22 November 2022) to brief parliamentarians on the importance of the Prosecco grape variety to Australia’s wine sector and regional economies. The right to use the variety name on Australian bottles is under threat as the European Union (EU) seeks to use the Australia–EU FTA as a vehicle to ban Australian producers from using it.

In 2009, Italy changed the name of the Prosecco grape variety to Glera within the EU. It was then registered as a Geographical Indication (GI) in the EU, shutting out imports labelled with the Prosecco grape variety from all other countries.

The EU is expanding efforts to gain exclusive use of the name Prosecco; however, in 2013, the Australian wine industry successfully challenged an EU application to claim Prosecco as a GI in Australia.

“The fact is, Prosecco is a grape variety name, just like Chardonnay or Cabernet Sauvignon,” said Lee McLean, Chief Executive of Australian Grape & Wine. “The European Union’s approach to this issue is motivated by a desire to protect Italian producers from competition and nothing more.”

Internationally, the Prosecco market is growing, and carries a 36% total volume market share of sparkling wine. It is outselling French Champagne in volume, and is the fastest growing sparkling wine category in the US.

The value of production of Australian Prosecco is around $200 million per annum, with 20 regions growing the variety. The majority of production, however, is concentrated in Victoria’s King Valley and Murray Valley.

Otto Dal Zotto of Dal Zotto Wines, the first person to commercially grow Prosecco in Australia, said, “Prosecco is, and always has been, a globally recognised grape variety.”

In the King Valley, the variety is underpinning regional employment, economic growth and tourism.

“We need our trade negotiators and the Australian Government to understand that there are real jobs and real people at stake,” said Natalie Pizzini of Pizzini Wines. “We’ve invested in this variety in good faith and the EU is trying to move the goal posts to protect Italian producers against fair competition.”

Driven by investment and in response to consumer tastes, the variety’s growth has been a shining light at a challenging time for the Australian wine sector. It has grown from a small base of just over $60 million in 2017, and 95% of it is currently sold on the Australian domestic market.

“Australian Prosecco has grown from a small base to a total direct value of over $205 million to December 2021. It currently fetches an average price that is more than double the price of most other varieties,” McLean said. “Consumers only have to look at wine lists in our pubs, restaurants and cafes to see that growth in popularity.”

Katherine Brown, of Brown Family Wine Group, one of the largest Australian producers of Prosecco, said, “Our family has invested millions of dollars in equipment, facilities, people and marketing to build up Australian Prosecco to what it is today.”

“These producers are here to make sure our politicians understand that decisions relating to Prosecco have significant consequences for businesses, regional communities and ultimately people. Prosecco isn’t just a bargaining chip for our negotiators,” McLean said. “If we don’t back our producers now, there is a real risk other varieties like Vermentino, Fiano, Nero d’Avola and Montepulciano will be next in the firing line.”

Australian Grape & Wine is standing shoulder to shoulder with Australia’s Prosecco producers and is working with industry to #SaveAussieProsecco.

Image caption: iStock.com/Manuta