Brunello, Banfi and Us Dollars

At the beginning of the Seventies the small Tuscan village of Montalcino, near Siena, was considered a depressed area. Today, more than thirty years later, Brunello di Montalcino Docg and Rosso di Montalcino Doc sell respectively about 6,3 and 4,7 million bottles per year, and this small village is known worldwide. It is estimated that three fifths of Brunello di Montalcino are exported, and that 25% of the production goes to the United States, followed by Germany (10%). One of the chief character of this "revolution" is without doubt Ezio Rivella, to whom the New York family Mariani conferred the mandate to create the Castello Banfi winery. This adventure is now told in a book written by Ezio Rivella himself, titled "Brunello, Montalcino and I: the Prince of wine's true story", that is going to published in the Usa. Before giving birth to Castello Banfi, the two brothes John and Harry Mariani were the importers of Cantine Riunite Lambrusco wine in the Usa, while Ezio Rivella was working as technical and commercial Director for a wine coop, and had founded an engineering and consulting wine company. Since 1977 Rivella began to buy, piece by piece, a series of contiguous farms near Montalcino, and six years later he reached almost 3.000 hectares' land, with the medioeval Poggio alle Mura castle in the middle. With the financial aid of John and Harry Mariani, Ezio Rivella built a technologically advanced cellar, able to vinify at least 100.000 quintals of grapes per year. His plan to build from scratch the largest winery in Montalcino, and one of the most important in Italy, provoked a local rejection similar to that caused by the arrival of Mondavi in the south of France, but Rivella at the end won the battle.

Yes: Castello Banfi has recently added small amounts of international grapes (Merlot) to its Brunello di Montalcino wine (100% Sangiovese), as Antinori, Frescobaldi, Argiano and others have done. But that's only one chapter of a long history, that started with Ferruccio Biondi Santi in 1888. A more recent protagonist of this saga is the Italo/American family Mariani, that with Ezio Rivella founded Castello Banfi at the end of the Seventies. The first move was a big mistake: Banfi, in fact, focused its attention on Moscadello frizzante, a sweet slightly fizzy white wine, and wanted to sell it in the Usa to reply to the success of the Lambrusco. Banfi even asked the other growers, during an open city board meeting, to replace their Sangiovese in favor of the Moscadello, promising to buy the grapes from them. At the end Banfi eradicated the Moscadello and planted Sangiovese. Every successful winery hides at least one mistake behind it...

Marsala struggling to rejuvenate

Marsala Doc is trying to relaunch its image, and to attract new consumers. This Sicilian fortified wine's appellation, in fact, has always been dominated by large commercial houses, and in the past its average quality decreased to a very low level. Today things are changing, thanks to a better integration between viticulture and production, a more diversified offer, and a succesful product innovation. To help wineries going ahead in this direction the Consorzio Vino Marsala Doc has ordered a market research to Astra, that was aimed at deepening the relationship between the Italians and this fortified wine, whose production in 2007 was 70.000 hectolitres, with a turnover of 16,5 million euros. According to the Astra market research, 77% of the 22 million Italian wine consumers knows the Sicilian Doc, but only 42% can identify the different typologies (Fine, Superiore, Superiore Riserva, Vergine, Secco, Semisecco, Dolce,...). The Marsala wine consumer is most often male, aged between 45 and 54, and is a frequent Internet user. About half of the consumers choose to drink Marsala more or less once a month, while the other half is divided between those who consume it several times a month and those who taste it only once a year. About 66% of the respondents thinks that the Marsala price is fair, while another 10% believes it is too low (!). Another research, conducted by the University of Palermo, and edited by Prof. Sebastiano Torcivia, discovered that are 110 Marsala Doc labels on the market, and that 73% of the total volume bottled is distributed by supermarkets, 18% by hotels and restaurants, and 9% by direct sales. About 31% of the total production is exported, and the main foreign markets are the Usa, Uk, Germany, Switzerland, Canada and Japan.

We can learn some interesting lessons from the Marsala history. The first one is that leaving an appellation only in the hands of large commercial houses can be very risky, because competition tends to focus on price only. The second one is that an appellation should have no more than 2/3 typologies, otherwise confusion is inevitable.

One glass before boarding

The Frescobaldi wine group has recently opened its third "flagship" wine bar in Leonardo da Vinci Fiumicino airport, Rome. The first one was inaugurated in 1999 inside the departure area of terminal A (national flights), followed by onother one in terminal C (extra Shengen flights). The new wine bar, named “Dei Frescobaldi retail & restaurant”, is located in terminal B, where flights leave for European contries. It's an open space where travellers can eat fresh raw fish dishes, in addition to classic cold dishes and salads, accompanied by a large range of by-the-glass Frescobaldi wines. The new venue is situated in the middle of a shopping area, and it's surrounded by Gucci, Dolce&Gabbana and Ferrari stores. In 2002 Frescobaldi opened a restaurant and wine bar also in the historical centre of Florence, behind Piazza Signoria.

Air strikes, low cost/no frills airlines, exhausting security controls... Travelling by plane is getting difficult, and a good glass of wine can help. The interesting point is that wineries are starting to follow their consumers, experimenting new selling concepts, instead of simply waiting for them.

Antinory going to unveil new winery

Antinori group, the major Italian wine family company (138,2 mio euros 2007 turnover), is going to unveil in a couple of years a new winery with a total surface of 37.000 square meters (23.000 indoor). It has been designed by Marco Casamonti (Studio Archea), and is going to host the new company headquarters, that after decades move from the old Palazzo Antinori, located in the centre of Florence. The new architectural complex is in Bargino, in the countryside surrounding Florence, and has been specifically built not only as a winery, but also as a tourist destination. There will be a museum showing how wine is produced and stored, an olive oil crusher, a bakery, a barrels production plant, a Tuscan food shop, and a restaurant. The idea is to give life to a contemporary Tuscan farmhouse, that "has taken the form of a volume built completely underground, conceiling all the elements that are usually part of urban constructions, and attempting to achieve a difficult but necessary reconcilement between natural and artificial. The result is a new earth surface covered by vineyards, marked by two horizontal cuts that, following the curves of the hilly land, rise to allow light to enter, and to offer a view of the surrounding scenery".

New wineries are often built with the purpouse of becoming "tourist destinations". This trend was born in the New world about 50 years ago (remember Mondavi?), and has now been completely assimilated by the Old world, including Italy. But something is still changing. The destination, in fact, is no more the winery itself, with its original architecture style, but the building set in a unique landscape. Modern wineries like the Antinori one, in other words, try to emphasize the natural aspects of winemaking, and focus their attention to viticulture more than they did in the past.

Caprai launches 2.0 wine community website

Arnaldo Caprai winery, acknowledged leader in the production of Sagrantino di Montefalco Docg, has always had a particularly open approach to new communication strategies, such as Internet. The wine producer is the first in Italy to have launched a "web 2.0 wine community" www.capraiduepuntozero.it, where subscribers can access and/or share multimedia contents like pictures and clips. "In Capraiduepuntozero - says Marco Caprai - it is possible to look at videos, photos and reports made during the events that we regularly organize worldwide during the year, and to interact with them". In the past Arnaldo Caprai used Internet also to establish a wine club (www.amicidelsagrantino.it/) and to offer a special wine sold exclusively on http://www.nerooutsider.it/.

In the Italian wine industry Web 2.0 is just taking its first steps. A few company blogs have appeared, and many of them have rapidly disappeared: probably the best one that you can look at is Poggio Argentiera's, a winery situated in Tuscany's Maremma, near the town of Grosseto. Caprai winery is trying to do something more, and use Web 2.0 not only to share information, but also to enhance creativity and collaboration among (young) users.

Italian wineries and climate change

The Italian wine industry, as many others, is significantly characterized by exposure to climate risks, and on this subject the Bocconi School of Management is going to organize a specific conference, that will be held in Milano on May 29th. Nowadays there are generally two types of contracts available to the wine industry: one insures a specific vineyard, the second insures the winery's production, and both show a substantial inadequacy in covering the climate risk. The Bocconi School of Management suggests to implement the use of weather derivatives (WD), that are contracts negotiated within the financial markets, aimed to transfer a climatic risk that has a recurrence character. The WD are based on climate measurements (not on estimated economic damage), and the Bocconi study suggests that the inefficiencies and limitations normally accorded to insurance contracts could be overcome and resolved through the use of these financial instruments. To download the entire study (written in Italian) click here.

The major Italian business and management Universities are showing an increasing interest towards the wine sector. Wine production, in fact, is a very specific activity, and accordingly deserves very specific solutions. The future research fields are innumerable: risk management, but also new financing solutions, alternative to the listing.

Italian architecture + wine and food. In Tokyo

The communication strategy of the Italian winery Bava (Asti province - Piemonte) is known to be very creative: for example they are on YouTube at http://it.youtube.com/TheFunManager. On Thursday, May 29th, Roberto Bava, owner of the winery, is going to present the first event "Architects in kitchen" at the Tokyo Armani Ginza Tower. Each event of the festival, dedicated to the Italian wine and food promotion, will bring togheter one great architect and one famous chef. The first ones will be the Japanese architect Kengo Kuma and the well known Italian chef Henry Derflingher, who will cook dishes accompanied by Bava wines. "The greatest chefs and architects have in common the hard effort in making unique their work. We have accordingly decided - has explained Roberto Bava - to call two great artists to work side by side, not only to create 'unique works', but also to show that .. the shape can change the taste". The event will take place in the new Armani Restaurant, designed by the Italian architect Massimiliano Fuksass.

Edward De Bono "lateral thinking" could be very usefull to organize new and original projects to promote our wines abroad. The "Architects in the kitchen" event testifies the creativity of many Italian producers, that understand the importance of linking wine with other aspects of everyday life, like food and architecture, but also music, sport, books, ... Internet can teach a lot at this regard.

Wine and food leads "Made in Italy" abroad

A recent research made by "Osservatorio giornalistico internazionale Nathan il Saggio", a company member of the Klaus Davi & Co group, has found that wine and food is the most representative economic sector of the "Made in Italy" abroad. The research has monitored around 49.800 articles about Italy published by major international newspapers, and has selected more than 5.000 of them. The data were presented on May 26th in Milan, to celebrate the 20th anniversary of Ornellaia, the Italian wine more often cited by the international press. Fashion (3.344 articles) remains the preferred subject by foreign journalists, followed by cars (490 articles) and by wine and food (463 articles). The fourth place is occupied by Italian companies (356 articles), and the fifth by art and design (356 articles). The Italian objects preferred by the foreign press are perfumes (18%), cellphones (15%), wine (15%), bikes and motorbikes (14%), glasses (10%), travel (9%), sportswear (8%), underwear and swimming costumes (4%), bed and mattresses (2%). The articles that praise Italy the most come especially from America, Russia and the Middle East.

(translated and adapted from http://www.agi.it/food/notizie/200805151336-eco-rt11089-art.html)

Fashion, cars and wine are the three subjects most frequentely associated to the "Made in Italy" image by the International press. But the three of them are well known worldwide expecially for their high price range, and their "icon" status. Think about Armani, Ferrari and Ornellaia... We are lucky for having these brands, but we unfortunately lack everyday brands with a high perceived value (for example H&M in the fashion sector, or Yellow Tail in the wine market). Do you agree with me?

Consumer marketing? A gold dust

A research conducted by the annual publication Enotria, edited by Unione Italiana Vini, revealed that the Italian wineries invest in communication about 5,8% of their total turnover, with a maximum of 10% and a minimum of 1,5%. Press advertising represents on average 14,4% of the wine producers' promotional budget, attending at trade fairs 13,4%, public relations activities 12,2%, events organisation 15,0%, point of sales' promotions 12,6%, and packaging and naming research 8%. "The Italian wine world, with very few exceptions - commented Andrea Sartori, President of the Unione Italiana Vini - cannot communicate directly with the consumers. It's an element of weakness that we can not overcome, because the wineries average-size is small, and producers cannot afford big budgets".

"In the Italian wine industry there are no brands, but only names. (...) Each wine has an history to tell, and every brand must help consumers to discover it. Till now, unfortunately, in Italy we have only heard a very confused stammering", has recently told the famous sociologist Gianpaolo Fabris. The problem is not the lack of money, consequently, but the presence of a very fragmentated market, and the chronic difficulty for Italian wineries in joining shared promotional activities.

Something's changing in Giv?

Gruppo Italiano Vini (Giv) members' assembly has approved the 2007 balance sheet, with a 294,8 million euros consolidated turnover. The 11,4 % increase is mainly dued to the recent deal made with the Bolla winery, and to the increased sales of the two main foreign subsidiaries: Frederick Wildman & Sons in New York, and Carniato Europe Group in Paris. The net result for 2007, after taxes, amounted to 2,7 million euros, almost unchanged from the previous year. The assembly then elected the 15 new Board members. Vanis Bruni, who is the current President of Consorzio Interprovinciale Vini di Modena, was appointed new Chairman of the Giv. Corrado Casoli, President of Cantine Riunite (Reggio Emilia), was confirmed vice President. Emilio Pedron retains the Giv CEO office with the same tasks and responsibilities, while Rolando Chiossi leaves the presidency after more than two decades.

We could write a fiction book about the Gruppo Italiano Vini's history. Giv has in fact suceeded in becoming a quality leader in the Italian wine industry, combining the assets of both small and large estates, and a great part of the merit must be ascribed to its CEO Emilio Pedron. Giv was born as a very particular wine group, owned by 7 big cooperatives, and now rumors are saying that something is changing. Cantine Riunite and Consorzio Interprovinciale Vini di Modena (Civ & Civ), in fact, could soon merge, and become the only two Giv owners. In a small wine world like the Italian one this operation will not pass unobsverved. We shall see...

Gallo leader in Italian wines' exports to Usa

The first Italian wines' exporter to the Usa is very likely to be E. & J. Gallo. The industrial-strength California-based mega-corporation sells four Italian wine brands in Usa. The first one is Ecco domani, that according to Impact Databank has sold 16,8 million bottles in 2006: it was launched in 1996 with a Pinot Grigio varietal, and today covers a range of five varietals. It has become the leading premium Italian wine brand in the United States. The second is Bella Sera, a mass-market wine brand that has gained considerable popularity in the restaurant and supermarket niches, and that according to Impact Databank has sold 26,4 million bottles in 2006. Ecco Domani is produced and bottled by the Mezzacorona winery (Trento), while Bella Sera is produced and bottled by Schenk Spa, the Italian branch of the homonymous Swiss group. The third one is Da Vinci, produced in Italy by Cantine Leonardo da Vinci, a 200-vineyard Tuscan grower cooperative and winery, that according to Impact Databank has sold 2,4 million bottles in 2006. There is also a fourth brand, called Maso Canali.

Congratulations to Gallo... These four brands are probably better tuned to the American wine consumers' needs than ours. Do you agree with me? Ecco Domani Pinot Grigio, for example, is cleverly positioned against the fashion and style of contemporary life. It is sponsor of the Fashion Week in New York City, and supports the careers of emerging fashion designers. I do not know any big Italian winery that has tried to take advantage of the synergies between fashion, design and wine on the international scene. Gallo did it.

Eco friendly wines from Settesoli

On May 30th the Sicilian winery Settesoli is going to inaugurate a very large photovoltaic installation, built in cooperation with Enel group, that will be able to produce 370.000 Kwh per year. It's the largest photovoltaic plant till now built by an Italian winery, and represents a further confirmation of the growing attention given by wine producers on environmental issues. The photovoltaic installation will avoid the emission of 200 tonnes of CO2 per year, and will permit 80 Toe fossil fuels savings per year. The 1.500 panels occupy an area of approximately 5.000 square meters, and have been installed on the roofs of production buildings: therefore they are almost completely invisible, and have a very low environmental impact.

Wineries have to increase their wines' value, and environmental issues can help. Without forgetting that a photovoltaic istallation like the Settesoli's one permits very interesting energy savings. A last consideration, very important for me: try to forget the stereotypes, because Sicily really deserves it.

Lambrusco's revolution?

Alicia Lini is featured in this month's issue of Men's Vogue. In the June/July edition of the men's style magazine, noted author and wine enthusiast Lawrence Osborne profiles the Lini company and in particular Alicia - the international face of Lini and its fourth-generation Lambrusco producer. He describes fondly a dinner held in Lini's honor at the New York restaurant Centovini back in March, and "praises Alicia's movie star appeal, indeed likening the young producer to Sophia Loren". Osborne also assesses the success of Lini's Lambruscos and their vital role in resurrecting a somewhat "socially tarnished variety, helping erase memories of the "ghastly party plonk" consumed by millions of Americans in the late-1970s". For Lini, the negative label was hard to shake off. "It's taken ten years for people to realize we didn't make that awful stuff," she says. Now Osborne feels the transition is finally complete. "In the past couple of years, [Lambrusco's] image has undergone a surprising revolution," he notes. "The sugary spritzer of our summery youth has become a dry, elegant dinner wine of our middle age."

(adapted from http://vinonyc.wordpress.com/2008/05/19/alicia-lini-in-mens-vogue/)

Producers can become excellent testimonials for their wines. Especially if they look like Mrs Lini, and they appear in Men's Vogue... In the afterwar period Italian wine was promoted by serious winemakers with glasses in their hands, while now it's time to let young people talk directly to new consumers (newbies), without intimidating them. At this proposal you can also look at the "Primo amore" brand's advertising, where Francesco Zonin, vice president of the Italian wine company, acts again as a testimonial.

Bubbles all year long

About 75% of Italian sparkling wines' consumption are still concentrated in December, but things are slowly changing. In January and February 2007, for example, the neck labels applications to the Franciacorta consortium were 100% higher than in the same period during the previous year. The neck labels are given to the wineries, and are required for the wine release to the market. In 2007 the total production of Franciacorta, a wine country located in the heart of Lombardy, amounted to 8.367.061 bottles, with an increase of 24% over 2006. Last year seven new bottlers and 19 new growers joined the Docg consortium, while the surface area increased by almost 200 hectares, in comparison with the 1.908 hectares and the 343 wineries (growers or bottlers) of 2006.

(source: Franciacorta Docg consortium)

Product innovation is one of the most important keys that can be used to extend the sparkling wines seasonal consumption pattern. The Franciacorta Saten, for example, is a particular sparkling wine type born in 1995, obtained mainly from Chardonnay grapes, with bottle pressure of less than four and a half atmospheres, and sugar content of less than 15 grams/litre. This Brut may also be vintaged, and is ideal to drink through the meal. Rose sparkling wine may also help to modify consumption patterns. But habits are hard to change...

Italian wine brands missing

The Power 100 2008 is the third of Intangible Business’ annual reports into the most powerful spirits and wine brands in the world. Wine has been performing well across the board over the past year, but Italian wine brands are still missing in the top 100. Martini aperitif brand (Bacardi Martini group) has had a good year with its total score up 8% and its number 4 position maintained. Its brand equity too, has performed well with the panel of experts deeming it 6% more valuable than the previous year with a particular increase in its market scope, market share and relevancy. Number 39 is Fernet Branca (bitters, spirit aperitifs), while Cinzano is ranked 65th, Illva Saronno (liqueurs) 87th and Amaro Ramazzotti (Pernod Ricard) 89th. At the end of the 100 most powerful spirits & wine brands 2008 we find Martini Sparkling wine. Italy, like France, is missing out on valuable opportunities by failing to tap into a segment of the market that the new world wines have excelled in. The Australian Hardys, for example, provides a good standard of wine at reasonable price: now looks poised to become the most powerful wine brand in 2009. Workings have been deliberately left unlocked to allow for an open discussion of the brand rankings, and the full report can be downloaded here.

In the next years in Italy we are probably going to see a growing consolidation between coop and medium sized wineries. But this process will help building stronger brands? In Italy, in fact, brands run the risk to continue to be focused mainly on one appellation/varietal. Santa Margherita, for example, revolutionized the American market with Pinot Grigio more than a quarter century ago, and today has become almost a synonymous of that varietal. The same happened with Riunite Lambrusco. How do you consider these brands? Leave your opinions, if you like...

Doc in box... at last!

Green light to the use of bag-in-box for Italian Doc wines. The decision, that has been taken by the Ministry of Agriculture after a very long debate, permits the use of bag-in-box with nominal capacity equal to or exceeding 2 litres. Doc wines with the mentions "vigna", "riserva" and "superiore" cannot benefit from this opportunity.

(translated and adapted from http://www.focuswine.it/portal/intxt.asp?idtext=4377&at=105109846V114628270A22925654084306&uid=REGGI565)

In Italy every controlled appellation wine has its own regulation, called "disciplinare", approved by the Parliament. Disciplinari are often criticized becouse they tend to be too rigid, leaving not enough opportunities to producers to compete in the global market. But something seems to be changing, probably in the right direction. This new law will help Italian wineries exporting their Doc wines in markets like Sweden, where bag in box has more than 50% of the market share.

Sensorial communication for Chianti Classico

Chianti Classico returns to the USA with "The Tuscan Nose", the event organized by the Chianti Classico Wine Consortium, introducing the most recent Gallo Nero vintages to the American market. More than 100 Chianti Classico labels from 41 wineries were on display in Manhattan 583 Park Avenue, New York. The Chianti Classico area covers 7,100 hectars of Tuscany, stretching from Florence to Siena, and houses brands like Badia a Coltibuono, Banfi, Barone Ricasoli, Castello di Ama, Cecchi, Dievole, Felsina, Fontodi, Isole e Olena, Rocca delle Macie, Ruffino, San Felice and Vignamaggio. The journalist David Lynch addressed the American public a seminar on “Chianti Classico Terroir: A Taste Map”, while Marco Pallanti, President of the Consortium, took the opportunity to present “Essences of Chianti Classico according to Villoresi”, a new, unreleased perfumes' range created by the famous Florentine house Lorenzo Villoresi. All proceeds from entrance ticket sales were given to support the activities pursued by Terra Madre/Slow Food project.

(adapted from http://www.chianticlassico.com/english/index.asp)

Sight, smell and taste are the three elements commonly used to determine the quality of a wine, but each one of them can also be separated from the others, and become a useful tool to promote the uniqueness of a brand or an appellation. In an old Rotari metodo classico advertising, for example, the sparkling wine bottle was transformed in a flower pot. With the "Tuscan nose" event the Chianti Classico consortium has gone in a similar direction, trying to describe its appellation in an original way, where the smell becomes synonimous of aristocracy and subtlety.

One bottle = one glass

Quanto Basta is a new Italian range of 20cl and 25cl wines that has just been launched in the Uk by Crush Wines Ltd. It is produced by Coltiva, an Italian wine coop representing 7.550 vintners, 10.000 hectares of vineyards, and selling more than 500 products in various formats in 40 countries around the world. Quanto Basta offers a range of quality sparkling and still wines coming from Italian regions like Veneto and Romagna, including some interesting labels such as Verdicchio and Montepulciano d'Abruzzo. Quanto Basta, that literally translated means 'just enough', comes with an easy to use screw-cap closure which is practical and avoids the oxidation effects. Capitalising on current growth areas such as sparkling, as well focusing on the role of social responsibility, the range includes a Prosecco Veneto, and a Vino Bianco Frizzante. Four of the wines in the range are low in alcohol.

(adapted from http://www.talkingretail.com/products/8950/Crush-Wines-launches-Quanto-Ba.ehtml)

Packaging innovation is becoming more and more a must for wineries willing to launch new Italian wine brands abroad. A unique bottle shape and label, with or without an alternative closure, is in fact capable to immediately differentiate the content. Nowadays packaging is also capable to satisfy eco-friendly/healthy living/handiness consumer needs. A question for everybody: a packaging can be copied more easily than a wine? Or not?

Territorial marketing for Piemonte at Liwf

Piemonte, North-Western Italian region, is attending for the first time the London International Wine & Spirits Fair with 20 wine producers and consortia. At the Italian Pavillion (stand U50), Piemonte will be displaying its best oenological production, inviting all visitors to taste wine and spirits paired with food specialties. In addition Piemonte will also organise conferences and tasting sessions at the Italian Wine Seminar Area. With 44 different Doc (registered designation of origin) and 13 Docg (registered and guaranteed designation of origin) wines, covering 80% of the total production, Piemonte produce wines such as Barolo and Barbaresco. A snapshot of the wine industry shows 53.000 hectares of land under vines, with an average annual production of 450.000 tons of grapes, mainly from autochthonous vines, processed into around 3 million hectolitres of wine. Piedmontese wine and spirits sector also confirms its international vocation: 60% of the production is in fact destined to foreign Countries, headed by the United States and Germany. In 2006 the regional export reached around 1 billion euro, representing 20% of the national total, which is expected to grow in 2007 for a supposed 12%. Uk is the first destination for the Piedmontese beverage sector - wine, alcohol and spirits, mineral water and soft drinks - representing 20% of the Piedmontese exports, so as nearly 225 million Euros, and a third of the regional total to the European Union.

(adapted from http://www.centroestero.org/EN/Page/t02/view_html?idp=303)

The Italian wine industry is moving its first steps towards territorial marketing. In this view a region/appellation should be managed as a brand, with a unitarian image and a coherent price positioning. A brand that covers not only wine, but also food, tourism and handicraft. Probably one of the Italian regions that are more ahead in territorial marketing is Alto Adige. Piemonte has a much more pronounced diversity, but it's worth while to have a try.

From the screen to the shelf: a new wine brand is born

For the first time a wine has born in a television fiction called "I Cesaroni", broadcasted by Canale 5 (Mediaset group). In the seventh episode of the fiction the two Cesaroni brothers decide to buy the vineyards that their father had sold before dying. Then they start producing a wine called "Senz'amarezza", that "never leaves a bitter taste in the mouth". A few months after the Cantina Cerquetta, located near Rome, has acquired the licensing rights and has started to sell a similar wine in the "real" market. The wine of the Tv fiction has been launched to the public in two versions: a white "Frascati Superiore Senz'amarezza Doc", and a red "Red Lazio IGT Senz'amarezza" (a blend of Merlot and Sangiovese).

(translated and adapted from http://www.teatronaturale.it/articolo/4620.html)

To comunicate a wine you need a story, and if you lack it you can invent it. This promotional initiative has helped launching a wine that, probably, will be forgotten in one/two years. But it helps us to understand that wine communication has to focus not only on the production, but also on the consumption. In the "I Cesaroni" fiction wine is drunk in a family atmosphere, as most Italians do at home every day.

Yellow future for Italian wines?

In 2007 Italian wine exports grew by 7.8% after a 6.5% increase in 2006. The increase in demand was particularly strong in emerging markets: +55% for a value of 15 million euros in China and +35.5% for a value of 6.6 million euros in Hong Kong. Therefore the presence of Italian wines at the next edition of the Vinexpo-Asia fair, that will take place in Hong Kong from the 27th to the 29th May has a particularly high strategic value. Ice (the Italian Trade Commission) has organised an official delegation to Vinexpo-Asia with the aim of developing and consolidating trade links with the Asian regions, where demand grew sharply in recent years. In February 2008 Hong Kong has announced a reduction on wine import duties, with the intention of transforming the former British colony into a mature market, a world class wine centre on par with London and New York. The 72 million dollars reduction in tax revenues should boost the local market by 500 million dollars. One must look into the future to understand the prospect for Italian wines in Asia and in the Far East in particular. According to a recent study carried out in Hong Kong, wine imports will increase on average between 10% to 20% in the next five years, peaking to 100% in some regions. The main areas for growth should be China, Hong Kong, Taiwan, South Korea and Singapore. Excluding Japan, the turnover for the wine sector in these countries should reach 130 billion Hong Kong dollars in 2012. The real boom is expected to happen in the following five years: by 2017 the market should reach the level of 210 billion Hong Kong dollars. There is another reason why China represents a sensational opportunity for Italy: pro capita consumption of wine is still low. Currently there are just over 10 million regular drinkers but the estimated potential is huge: 5% to 10% of the population, i.e. over 100 million consumers under the best scenario ready to drink 750 million bottles in 2009, which should become over 1 billion by 2011.

(from http://www.italtrade.com/countries/americas/usa/business/index2.htm)

Today I cannot write anything else but offer to Chinese people all my heart-felt condolences upon the quake that has toppled buildings and schools in central China, killing more than 12,000 in Sichuan province alone. Thousands more people are still trapped in mounds of concrete, steel and earth in the worst quake in three decades.

January exports: 2008 starts well

After a flat month in December, exports of Italian wine had a good month in January. It must be said that this is a very light month, also because it comes after the peak of the last quarter of the year. We exported 1.3m/hl, about flat compared to last January, for a value of EUR238m, an increase of 14% compared to January 2007. The average export price of EUR1.83 shows an increase of 16% over January 2007. Moving to annual figures (February 2007-January 2008), Italian exports are still growing by about 9%, broken down as +1.5% from volumes (18.8m/hl) and a +7.5% from the price-mix . If there is a negative impact from the bad advertising recently offered (for free) by the Italian press to the sector of Italian wine, we will see it only in a few months, when we will comment exports in May-June. In this context of growth, the lion share continues to be taken by sparkling wines, which grew in January by 67%. The annual growth stands at 30%, or EUR400m. To push exports of sparkling wine are the usual countries: England (third market, +111% in a year, EUR60m), Spain (EUR35m, +150%) and Russia (+66% to EUR24m). US shows a constant deceleration at +7% per annum (vs. the +15% of just 3 months ago). Germany continues to do well, with an annual growth rate that remains at around 10% per annum. Japan and the Netherlands are clearly down.The export of bottled wines also had a good month: the annual growth remains at around 6%, which is equally divided between higher volumes and better prices. United States and Germany are now stable (and this is not bad for the United States, considering the negative impact of the exchange). The growth markets are still UK (+9%), Canada (+7%) and Switzerland (+11%). After the sparkling wines, bulk wines are those growing more, with an annual growth of +15%, driven mainly by the price-mix. Volumes are decreasing, we are at 6.4m/hl year, now far from peak touched of 7.1m/hl in June 2007. Where is this bulk wine going? EUR256m of EUR458m of the total go to Germany (stable compared to a year ago), EUR45m in France (-25%), EUR20m in Switzerland (-20%), EUR47m Czech Republic (+37%) and EUR18m in Hungary (-35%). Finally, a few words on imports in January which were stable at EUR20m, with a total for the year of EUR345m (17%). Splitting this value by type, the bulk wines were up 16% to EUR86m, bottled wines were up 9% to EUR54m and sparkling wines (Champagne and a bit of Cava) reached EUR205m, +20% vs. January 2007.

(from http://inumeridelvino.it/2008/05/esportazioni-di-vino-italiano-aggiornamento-gennaio-2008.html)

It's always astonishing to discover how much Italian bulk wine is still exported in the world! Could be interesting to know how it is sold in Germany, in France or in Switzerland, once it is bottled. A positive signal is that in 2007/2006 Italian bulk wines' exports have increased by 15% in value.

Italians and wine: conservatives and unpredictables

The Italian wine group Santa Margherita has published an in-depth research on consumption patterns of wine, and on the criteria of choice and purchase, made in collaboration with the market research company Swg Tomorrow. The study reveils that 75,7% of Italians consume wine, and that about 50% of the interviewed drink it almost every day, mainly at home (58,7%). The purchase decisions are firstly motivated by color (58,8%), while for 27,1% the choice is split between still and sparkling wines. Brand and varieties are considered only by 22% of the consumers: only 50% of respondents are able to spontaneously mention a brand of wine. About 50% of the interviewed choose their wine in a well specific price range: 40,2% prefer inexpensive wines (less than 3 euros), 30,9% want to spend no more than 5 euros, and the remaining usually buy premium wines. More than 76% of the interviewed buy premium wines when bottles are going to be used as gifts. About 60% like to experiment new labels and denominations, suggested by friends and relatives other than by advertising campaigns on television, radio and print, while the remaining 40% use to buy always the same kind of wine. "The research - commented Lorenzo Biscontin, marketing director of Santa Margherita group - shows that the Italian wine market is more and more segmentated, and that buying decisions are no more determined by socio-demographic profiles only, but also by consumption occasions".

Wine marketing is not an easy job at all. In Italy, in fact, 40% of the consumers continue to buy the labels they have always bought, and the remaining 60% go looking for new wines driven more by the "word of mouth" than by the traditional brand advertising. The solution? Try to set up a wide "umbrella brand" under wich consumers can find many different wines, coming from different regions... And why not start using wineries' blogs to increment "word of mouth"?

Vinitaly, to Russia with wine

Exponential growth for wine and agro-food products from Italy to Russia. From June 9th to 11th the New Manege Exhibition Centre in Moscow will host the 5th edition of Vinitaly Russia, organised in partnership with Cibus and Ice. On June 11th there will also be a workshop and some tastings in St. Petersburg, at the Perinnye Ryady Business Centre. Last year Vinitaly Russia gathered more than 100 Italian producers, and attracted more than 2.000 trade operators, including importers, distributors, retailers, caterers, journalists and opinion leaders. In 2007, wine exports were more than 57.5 million euro, up by 43% over 2006, for a total of 237.000 hectolitres (compared to 96.000 hectolitres in 2005), with an increase of 18.8%. Particular success has been achieved by sparkling wines, that posted a total of 23.6 million euros (+69%), with 70.000 hectolitres (+76%). Italian sparkling wine by now covers one-third of the Russian market, well ahead of France, and the early months of 2008 are confirming this positive trend. Italian wine and food products still focus on luxury consumption, and Italy consequentely ranks only fifth for wine imports, with a market share of 6%, and fifteenth for agro-foods, with 2%. After Russia, the World Tour organised by Vinitaly will resume in Chicago, New York and Washington from October 27th-30th. The 2008 Vinitaly international calendar will end in November in Japan (Tokyo) and China (Peking, Shanghai and Macao).

(adapted from http://www.vinitaly.it/comunicati_en.asp?area=news&id=3028)

In one of the most fragmented markets in the world, the biggest wine fairs are becoming global brands. Vinitaly is no exception: born as the first national wine fair in Italy, now it has become a promotional chanel in many countries of the world. The need of networking and aggregation is very much perceived by Italian wine producers, but are fairs really usefull to explain/comunicate the distinctiveness of each region and appellation?

Wineries and social responsability

The Sicilian winery Planeta has launched an interesting "social responsability" campaign in cooperation with Comunità di Sant'Egidio. On May 22th, between 6.30 and 8.30 pm, Planeta wines will be served in 13 bars and restaurants located in 10 Italian cities: Rome, Florence, Bologna, Turin, Venice, Milan, Palermo, Catania, Naples and Bari. Every glass of Pl