Literally—Cutting Back on Wine in Italy

This year, wine output growth in Italy, a major producer, will slow down after farmers dug up vines because of incentives under the European Union wine sector reform.

The EU reform offers money to less competitive winemakers to dig up vines. The cash premium is the highest in the first year.

Italian growers' increasing efforts to prune grapes to improve quality also reins in quantity. Still, Italy's wine output is expected to rise 5 percent from 4.6 billion liters produced in 2008, when it jumped 8 percent.

So—don’t worry. Wine still flows in Italy.