Coronavirus conversations: Andrea Nicolini, Cavit

Andrea Nicolini, export director at Italian cooperative Cavit, reveals that UK sales have actually remained stable during the Covid-19 pandemic, with growing demand for rosé Pinot Grigio.

How is business during this tricky time?

Surprisingly, and we didn’t anticipate this at the beginning of the pandemic, our UK business is stable. That said, there has been an increase in the off-trade and a huge decrease in the on-trade. The former used to represent 85% of our UK business, and now accounts for 98%, thus retail sales have increased substantially.

How has sales of your wine, and Pinot Grigio specifically, been affected?

Pre-pandemic, Pinot Grigio represented 80% of our UK sales and this hasn’t changed. What we have seen is an increase in retail sales of our Pinot Grigio Rosato and other white varietals. I think this is due in part to the fact that South Africa went into complete lockdown, whereas we – and others – were and are still in a position to be able to serve the market, albeit with a slight delay.

How have you adapted the way you do business during the coronavirus crisis?

It is taking us a little longer to do things in the winery, as we’re being careful to maintain social distancing and increased hygiene routines, but it’s surprising how quickly everyone adapts to what is now the new normal.

Do you think it will change how people do business, and if so, how?

I think the pandemic will change things certainly in the short term, and possibly permanently. For the months to come, and perhaps until a vaccine has been developed, I anticipate people will continue to drink more at home as opposed to in restaurants and bars. This will see the retail side of the wine trade continue to enjoy its moment.

And I’ve been told that UK consumers are getting more curious, and even confident, with their purchases – so trading up is something that is perhaps (hopefully) here to stay.

I also believe that the current landscape has accelerated digitalisation. I anticipate that e-commerce will become much more integrated as it seeks to improve service, communication and engagement to the final consumer. So, mirroring the way fashion has headed, we could see the shop effectively acting as a showroom, with the delivery service as the sales driver.

What are your top priorities as a company going forward? Do you have any news to report?

For now, we are not looking to launch any new wines. It will take the market some time to recover, and there will definitely be less disposable income around. Plus, we still don’t know what Brexit is going to look like! So ask me this question again in six months’ time when we know better how the land lies, and can look at what’s best for the market.