Italy was the 2nd largest wine producer after France last year, producing 42.7 million hectoliters in 2011. This year however, production is taking a hit because of heat and drought. The Instituto di Servizi Per il Mercato Agricolo e Alimentara (ISMEA) predicts production in Veneto, Italy’s biggest wine producing region to fall 12% to 7.67 million hectoliters and production in Emilia Romagna to drop 9.8% to 5.82 million hectoliters.