The impact of regional digitalization on financial performance and emerging market trends in the Italian Spirits Industry

Abstract

The spirits market is undergoing significant transformation due to changing consumer preferences, increasing awareness of alcohol consumption, product diversification, and growing competitive pressure. In this context, digitalization represents a strategic lever through which firms can improve market responsiveness, operational efficiency, and consumer engagement. These dynamics are particularly relevant in territorially uneven contexts such as Italy, where regional digital readiness varies substantially. This paper examines the relationship between the level of digitalization in Italian regions, as measured by the regional Digital Economy and Society Index (rDESI), and the financial performance of companies in the spirits sector, represented by the weighted average Digital Return on Assets (dROA). Using a representative sample of firms across Italian regions, the study investigates how digitalization impacts business performance and explores regional disparities in Italy. Additionally, the paper identifies emerging market trends in the spirits industry and links them with the rDESI - dROA analysis, providing insights into how digitalization enables companies to adapt to and capitalize on evolving market dynamics. The results highlight the importance of leveraging digital assets not only to enhance financial outcomes but also to align with consumer preferences and industry innovations. The findings aim to support businesses in developing strategies that bridge regional gaps in digitalization and optimize performance through trend-driven decision-making.