{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/62301a5c63c97500122f8a76/6a861966b9d83ea9cc592b5d?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"The macroeconomics of shipping and wine w/ Basile Aloy, Avignonesi","description":"<p>A 7th generation shipper and 2nd generation winegrower, Basile Aloy of <a href=\"https://www.avignonesi.it/en/\" rel=\"noopener noreferrer\" target=\"_blank\">Avignonesi</a> in Tuscany, has a unique perspective on the geopolitical and macroeconomic events happening today and how they impact the cost of wine.&nbsp;Oil prices, war, tariffs, and climate change all come into play in this wide ranging conversation that showcases how much some of these macro events impact the world of wine.&nbsp;</p><p><br></p><p>Detailed Show Notes:&nbsp;</p><p><br></p><p>Basile’s background: Chairman of Avignonesi, wine distribution in Italy &amp; US, 7th generation shipping family, CEO of shipping businesses EBE &amp; Victrix, studied winemaking in Bordeaux</p><p>Runs a fleet of dry bulk carriers in shipping, does not ship wine</p><p>Iran war has increased the cost of cargo, a 40 ft container for wine went from $1,600 to $2,700 (~70% increase), however, per bottle (~18k bottles/container) that goes from $0.09 to $0.15/bottle (not a huge impact)</p><p><br></p><ul><li>Many ships have been re-routed around South Africa instead of crossing the Suez Canal, they don’t send ships through Hormuz, which has caused congestion for trucking in the Middle East</li><li>There has been less fuel on the market, causing some wait times to re-fuel ships</li><li>Tariffs have had a bigger impact on wine costs, earlier in 2026, Italy paid 15% tariffs on wine to the US, mid-2026 it is now down to 10%, which has outweighed the freight increase</li><li>Food costs are rising, ~30% of global fertilizers come from the Middle East, diesel costs are up; food price increases are coming</li></ul><p>Domesticating production can be challenging, but it is happening in some places, both Canada and China are leaning in; Avignonesi saw China as a big growth market, but has fallen dramatically, partially due to high quality wines made in China</p><p>Both shipping and wine are very capital intensive, but ships can be purchased on the secondary market, where prices swing dramatically (from $25M to $75M in 5 years); wine cycles are much longer, which can create longer downturns like we’re experiencing today</p><p>Avignonesi overview</p><p><br></p><ul><li>170 ha vineyards</li><li>Focused on Sangiovese and some international varieties, as well as Vin Santo</li><li>~50-60% exported</li><li>Italian market is semi-export, as tourists drive a decent amount of consumption (e.g. - during Covid, Italian sales were down ~20-30%)</li><li>Basile’s family took over Avignonesi in 2009, have a vision to be more transparent with customers, healthy (move towards organic and biodynamic viticulture), and a desire to take care of the environment, broadly speaking (become a B Corp, provide English classes to the community)</li><li>Avignonesi requested permission from regulators to put “Nobile” bigger than “Montepulciano” for their Vino Nobile di Montepulciano</li><li>Wine is more brand driven vs shipping, need to be careful about discounting and its impact on the brand</li></ul><p>Shipping can be more sustainable than trucking wine; glass weight of wine has a huge impact on sustainability (~750g of wine in a bottle vs ~400-800g of glass; Avignonesi chose light weight bottles)</p><p>Europe is like Disneyland, “growers of memories,” which builds a connection to their wines, particularly the premium wines</p><p>The future of Avignonesi: starting a re-branding exercise, planted a “3rd millennium” vineyard to address viticulture issues with climate change (1st harvest 2027)</p>","author_name":"Robert Vernick, Peter Yeung"}