Italian wine exports to Hong Kong rised 29% in 2008

            Export of wine from Italy, a major producer in Europe, fell in

            volume last year under strong competitive pressure with traditional

            European markets taking the biggest hits, the industry body said

            this week.

            Wine export volumes dropped 7 percent to 17.8 million hectoliters in

            2008, but its value edged up 2 percent to 3.6 billion euros ($4.57

            billion), Unione Italiana Vini (UIV) said in a statement.

            "We are closing a difficult year, but our product has managed to

            hold on to the positions gained in the past," UIV Chairman Andrea

            Sartori said in the statement.

            Sartori said growing competition from the United States, Argentina,

            Chile and South Africa hit not only Italian wine makers but their

            French rivals and other European producers.

            "The challenge for this and coming years will be ... to be ever more

            competitive, improving an average quality of our products and

            boosting communication about the value of Italian wine," Sartori

            said.

            Exports to Germany, the biggest consumer of Italian wine in terms of

            volume, dropped 10 percent to 5.6 million hectoliters, while exports

            to France and Austria plunged 27 percent and 26 percent

            respectively, UIV said.

            Sales of Italian wine on the U.S. market, its biggest export

            destination in terms of value and the third-largest in volume, fell

            4 percent to 800 million euros. Sales volumes eased 2 percent, UIV

            said.

            Italian wine reputation in the United States, one of the world's

            biggest wine markets, was hit last year by investigations into

            authenticity of premium red wines made by some producers from

            Montalcino and Montepulciano in Tuscany.

            On the bright side, Italian wine sales to Russia jumped 36 percent

            in volume and 12 percent in value last year, with Russia become the

            12th biggest market for Italian wine.

            Italian wine export to Hong Kong, seen as a gateway to greater

            China, soared 29 percent and sales on the United Arab Emirates

            market saw an explosive 50 percent growth in volume and more than

            doubled in value, UIV said.