Regulatory Innovation and Sustainable Growth Strategies in the Wine Industry: The Case of an Italian Sparkling Wine Designation of Origin

In the context of strategies for the promotion of a sustainable wine industry, the utilization of production regulations under the European Geographical Indications system is seldom contemplated. Furthermore, when such texts are considered, the focus is typically on rules for viticulture or winemaking, rather than on articles governing the boundaries of a PDO or PGI. The present study examines the manner in which regulatory innovation, when viewed from a strictly geographical perspective, can promote the sustainable growth of the sparkling wine districts of Franciacorta and Oltrepò Pavese, which are located in the Italian Lombardy region. Through a comparative analysis of Franciacorta and Oltrepò Pavese, we explore how regulatory frameworks, land-use constraints, and production capacities interact to shape environmental, social, and economic sustainability. Franciacorta’s premium positioning and global reputation are constrained by its limited geographic area, making expansion environmentally and socially challenging. In contrast, Oltrepò Pavese has substantial production potential, particularly for Pinot Noir-based classic-method sparkling wines but suffers from a fragmented identity and weak market recognition. Benchmarking the Prosecco PDO evolution, we propose a sustainability-oriented growth model integrating multiple territories under harmonized rules, termed “Grande Franciacorta”. This framework would enable controlled growth, reduce land pressure in high-density areas, enhance regional competitiveness, and support long-term ecological stewardship. This study outlines managerial implications for producers, emphasizing multi-tier product architectures, dynamic capabilities, and coordinated governance mechanisms. Policy recommendations highlight the need for regulatory frameworks that embed sustainability criteria, optimize land use, and consolidate regional reputation to ensure the long-term viability of high-quality sparkling wine production.