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Food exports: also retailers are moving and Coop starts with China

By
fabrizio.gomarasca
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For decades it has been said that Italian retailers should have expanded abroad, but that the companies were not of a sufficient size to take the leap and measure themselves against the big international players. Then they arrived in Italy.

Some have gone, others are medicating their wounds. Others will arrive. Today, however, in 2015, albeit with the difficulty of establishing oneself abroad, with the opportunities of e-commerce and the interest of almost every country in the world for Italian food, things have changed somewhat. This was recently forcefully underlined at Fruit Innovation by the President of ICE, Riccardo Monti: “There is a huge demand from abroad for products of the Italian food industry. Today we are recognised leaders in quality, we must also become so in quantity”.

Maurizio Martina (Ministro delle Politiche Agricole, Alimentari e Forestali con delega ad Expo Milano 2015), Carlo Calenda (Vice Ministro dello Sviluppo Economico) e Riccardo Monti (Presidente dell’ICE – Istituto per il Commercio Estero).

The goal which the Government has given itself is 50 billion in export turnover for 2020, compared to the 33 billion of today. “A goal within reach – said Agriculture Minister Maurizio Martina (on the right) – that can also count on a single agrifood made in Italy logo”, presented at Expo. The single logo is represented by an Italian flag with three waves that recall the concept of growth and development and by the wording The Extraordinary Italian Taste. The plan selects three segments: established, emerging and new markets. And in June the first campaign aimed at the United States and Canada will start with an investment of 30 million euros out of a total of 150 million envisaged overall.

“From today Italian agrifood – explained Minister Maurizio Martina – will be stronger and more recognisable on international markets. We finally have a single logo that will help consumers and operators to immediately identify the promotion of our products. We are starting with Expo Milano 2015 to take advantage of this extraordinary opportunity for visibility and continue with the activities envisaged in our internationalisation plan on strategic markets. Over the next three years we will invest over 70 million euros in promotion, learning to work as a team and not spreading our resources too thinly. With the single logo we intend to work on recognisability, create a leit motiv that links all the promotion activities of the real Italian product on the international stage. Our goal is to support companies that in recent years have fielded their energy, ability to get things done and passion, companies that have enabled Italy to record a growth of 70% in agrifood exports in the last 10 years. We closed 2014 with 34.4 billion euros, in the first quarter of 2015 we are at over 8.7 billion euros and our objective is to reach 36 billion by the end of the year. Also by properly exploiting the Universal Exhibition in Milan we can make it and aim to achieve 50 billion in exports in 2020”.

Also large-scale distribution can play its part. In fact something is moving, precisely in the direction of using the many riches of Italian agrifood to develop business abroad. There have been examples in the past, so much so that Crai is present in Switzerland and Malta with 160 stores. The methods are different, but the two major Italian groups, Conad and Coop, have finally moved.

The Cooperative of retailers landed in China in February with a mixed formula, for the moment envisaging five stores and a network of vending machines with a wide selection of products that can also be purchased via the Internet.

The project of Coop Italia, on the other hand, has just started, with the creation of a specific company – Coop Italian food – to develop contacts with international retailers or distributors of Italian products abroad, to which to propose private label products and those of small suppliers.

The first episode of this new adventure is in China: according to inStoremag information, ItalMenu has been established, a company based in Hong Kong whose business is to import and distribute Coop branded products in the retail and HORECA channels. Three weeks of promotional activities with ICE are planned for June and July in 40 stores of the PARKnSHOP chain, which belongs to the Hutchison Whampoa group.

Tuttofood, a record edition. American consumers crazy for original specialities

By
fabrizio.gomarasca
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There were over 78,000 visitors to the Tuttofood edition which closed today, an increase of 40.8% over the previous year and 78.7% of foreign visitors.

Of significance is the fact that 2,100 selected top international buyers met with 2,838 exhibitors, of which 433 foreign, representing 7,000 brands, 11,790 in pre-scheduled appointments through the online Expo Matching Program calendar. So much so as to bring the new CEO of Fiera Milano, Corrado Peraboni, to say that “Tuttofood is ‘the’ ultimate tool for further internationalisation of Italian agrifood. Thanks to Tuttofood, many small to medium quality businesses had access to markets in which it would be difficult for them to be known in any other way. The goal of 50 billions in exports is increasingly within the reach of the food system and we are doing our part”.

A qualitative survey conducted on the top international buyers during the event revealed that Italian products are in demand worldwide, not only due to the appeal of our food and wine, but also because they have a reputation of being natural, safe and of high quality. Among the emerging markets, India and China are the most sensitive to the value added of all-Italian ingredients, while Middle East consumers especially appreciate the naturalness. Searching out original and little-known specialities, on the other hand, is the fad of Americans and Northern Europeans.

This strong interest in Italian food is confirmed by Kennet Pray, director of Kroger (2619 supermarkets and 786 convenience stores in the United States) for whom American food lovers are strongly attracted by Italian food that is affordable and simple and, especially upscale clientèle, is constantly in search of quality specialities.

 

 

The Italian fruit and vegetable industry is looking to exports, among opportunities and difficulties

By
fabrizio.gomarasca
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Marco Salvi, Presidente Fruitimprese

Italy is a major producer of fruit and vegetables, exporting 3.9 million tonnes (2014, +4.4%) and 4.1 million euros (-1.2%), with a share of 22% of fresh and processed produce, one point more than beverages. But how can exports be increased (also to compensate for the decline in the domestic market of 5.7% over the past 5 years) and which are the countries to be targeted? This was discussed at the seminar “Internationalisation of fruit and vegetable companies: concrete answers to emerging needs” organised by Fruit Innovation, the new fruit and vegetable exhibition which will make its debut at Fiera Milano Rho from 20 to 22 May 2015 with a mission: innovate and internationalise the industry.

Exports vary greatly depending on the product, we are the leader in the export of pears (with 718,000 tonnes, especially to Germany), stable in eating grapes of which half are exported, with the American market and seedless varieties growing, and we are the world’s second largest producer of kiwifruit (after China), 80% of which is exported to 100 countries, while we have decreased in a historical product such as citrus fruits, for which the balance of trade is negative.

The weaknesses of exports were summarised by Marco Salvi, President of Fruitimprese:

Phytosanitary barriers: if there is no bilateral agreement with the country in question, the result of political and diplomatic activity, you cannot export. In Japan, for example, we can only export processed oranges; in China we export 15,000 tonnes of kiwifruit.

The Russian embargo: fruit and vegetables have been hard hit, because it accounted for 39% of European exports, and is the largest importer of pears.

The conflicts in North Africa and the Middle East: that threaten an extremely promising and growing market.

The lack of a policy of commercial expansion involving companies and focussing promotional investments on selected markets.

Higher costs compared to other countries (including Spain, a direct competitor) in terms of labour, energy and transport.

“Companies, politics, universities and research need to form a system. 260 million euros for Made in Italy products have already been allocated by the Ministry of Economic Development (MED), which could allow us to make the quantum leap. We must invest in communication: for Pink Lady apples, for example, we invest 10 million euros a year. We are market leaders in many products, but we must avoid doing as we did for oranges, where we are the tail-end in exports: who would have said so 25 years ago?” warned Marco Salvi, President of Fruitimprese.

Claudio Scalise, Managing Partner of SGMARKETING, on the other hand, identified the opportunities to be seized at this point in time, positive due to the favourable euro/dollar exchange rate, oil prices at all-time lows and the beginning of recovery in consumption. “Among the trends I see are the increasingly blurred distinction between fresh and processed produce (see ready-prepared fresh produce) and exports that think in terms of the supply chain, from manufacturer to distributor to processor”. Another crucial lever is adaptation of the strategy to the different markets which request different things: critical consumption, service and aesthetics for mature markets, so product presentation becomes of crucial importance; quality standards, brand and service for emerging markets, for which imported fruit and vegetables are a status symbol for the middle class; and price for “New Frontier” countries (Africa, India, Turkey, Middle East), where fruit and vegetables are a commodity.

 

Carozzi launches e-commerce of cheese and targets export

By
fabrizio.gomarasca
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Carozzi Formaggi broadens its channels and sales opportunities by launching La Formaggeria, the website dedicated to the purchase of Carozzi cheeses, a tool that is especially targeting the global market.  The company in the province of Lecco, which has large-scale distribution as its main distribution channel (accounting for 40% of sales), is getting into e-commerce with a system structured down to the last detail: from website navigation to the delivery service, from ordering to the possibility of returns – if the product is kept intact.

One of the main features of the service is fast delivery, which is guaranteed within 24 hours throughout the country, with the exception of Lazio (Rieti), Abruzzo (Chieti/L’Aquila), Molise (Isernia), Puglia, Basilicata, Calabria and the Islands, for which it takes 48 hours, while in Europe and the rest of the world, delivery is guaranteed in a few days: an innovative service, never before provided by other cheese manufacturers. To ensure that products are delivered intact and do not lose any of their properties, shipping takes place using resistant, insulated cardboard and expanded polystyrene containers that ensure excellent preservation, also aided by sealed refrigerant bags which maintain the correct temperature inside.

Products combining tradition and innovation

Carozzi Formaggi products are today divided into eight main categories: Taleggio DOP, Quartirolo DOP, Gorgonzola DOP, washed-rind cheeses (characterised by periodic washing of the rind with a saline solution to remove mould and encourage the growth of red bacteria that characterise the colour, enhancing the flavour), natural-rind cheeses, fresh cheeses and, finally, goat’s milk cheeses, cow’s milk yoghurt and, new this year, meeting the latest nutritional and consumer needs: goat’s milk yoghurt. Obtained using Italian goat’s milk, thanks to artisan processing in traditional systems and the addition of fruit, this is a product that can combine the qualities of yoghurt, such as boosting the immune system, enrichment of the intestinal flora and digestibility, with the properties goat’s milk, more tolerable than cow’s milk, rich in calcium, phosphorus and vitamins and, after donkey’s milk, most similar to breast milk.

Carozzi Formaggi has 30 employees and a turnover of almost 13 million euros and produces 2 million kilograms of cheese a year. Exports account for 1.8 million euros, of which 513 thousand euros in the USA and the rest in Europe, but the company is also approaching new markets such as China, Japan and South Africa.

Vinitaly, 90 thousand square metres to promote the export of Italian wine

By
fabrizio.gomarasca
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Work on the internationalisation of wine companies and consolidate the image of Italian wine in the world, which already in the last few years has made a significant leap forward: these are the requirements of this sector that also this year sees in Vinitaly, at Verona Fiere from March 22 to 25 next and now in its 49th edition, the ideal service platform to allow producers and operators to maximise emerging opportunities and create new ones. Perhaps to reach the goal mentioned last year by Prime Minister Matteo Renzi to increase wine exports by 50% by 2020.

Even if 2014 was not an easy year, the feeling of the 30 leading companies surveyed by Vinitaly, which in total account for approx. 2 billion in turnover, is positive: 55% express confidence for 2015, 35% in these first two months have already had positive feedback and 5% expect a very positive year.

International meetings, TTIP and”Italian Wine” courses
“In line with the identity of the B2B fair – explained Giovanni Mantovani, General Manager of Veronafiere – Vinitaly 2015 will be the culmination of an intense incoming activity, which we implemented and developed with the support of MISE, the Italian Trade Agency – ICE and MIPAAF. Joining forces allowed us to engage buyers and delegations of selected operators from all around the world, with an increase in the financial investment of 34% compared to last year”.

In the International Buyers Lounge, B2B meetings will be held between the buyers of visitor delegations and exhibitors. A major conference, requested by protection consortia, wineries and other companies in the industry, will instead examine the issue of TTIP (Transatlantic Trade and Investment Partnership with the US) negotiations. In addition to focuses on Hong Kong, China, USA, Russia, Brazil and Australia.

More than 4,000 exhibitors are expected, occupying an area of over 91,000 square metres, which become 100,000 with Sol&Agrifood and Enolitech, the quality agrifood fair (with the part dedicated extra virgin olive oil implemented in collaboration with Unaprol) and that of technical equipment for the wine and oil supply chain that take place simultaneously.

Among the initiatives of Vinitaly worthy of mention are OperaWine, scheduled for March 21 in collaboration with the leading American magazine “Wine Spectator” and,  from March 16 to 20, again in Verona, the first certification course for Italian wine specialists, an initiative of VIA – Vinitaly International Academy, the Vinitaly International educational project which issues, after a final exam, two levels of certification: Italian Wine Ambassador (IWA) and Italian Wine Expert (IWE). Fifty candidates, representing the top professionals in the industry (managers of some of the major international hotel chains, journalists, Masters of Wine) from China, the United States, Australia, Austria, Brazil, Canada, Korea, France, Germany, Hong Kong, the Netherlands, the United Kingdom, Russia, Singapore and Ukraine. VIA will also organise three Master Classes+ during Vinitaly, not only on Italian wines. In collaboration with Ismea there will also be a conference on craft wines, another great Italian wine heritage.

Expo and beyond, towards the Consolidated Law on wine
At Vinitaly there will also be the official presentation of Vino – A taste of Italy, the wine pavilion in the Italian Pavilion of the Universal Exposition in Milan, implemented by Veronafiere-Vinitaly for the Ministry of Agriculture, the Italian Pavilion and Expo 2015 SpA. “Vinitaly represents all the Italian wine experience worldwide – said the Minister of Agriculture, Maurizio Martina -. Verona will also be the opportunity to take stock of what has been done by the Government in terms of bureaucratic simplification and internationalisation of our companies and to launch the new objectives beyond Expo 2015, including the Consolidated Law on wine, in order to restructure and reorganise the industry”.

Auricchio consolidates its position on the US market with acquisition of The Ambriola Company

By
fabrizio.gomarasca
-

“A strategic decision and an important signal for the entire food industry”. Said Alberto Auricchio, commenting on the acquisition by the global leader in the production of Provolone cheese of the American firm The Ambriola Company, one of the largest importers and distributors of Italian cheeses and Parma ham in United States.

The Ambriola Company, very well known both in retail and in large-scale distribution, has been importing Italian cheeses since 1921 and is the exclusive importer of the Locatelli brand – with Pecorino Romano other sheep’s milk cheeses – the number one brand of Italian cheeses exported to the USA.

The company, which is based in New Jersey, has for over twenty years been importing and distributing Auricchio (Provolone, Parmigiano Reggiano, Grana Padano), Giovanni Colombo (Gorgonzola, Taleggio, Mascarpone), F.lli Pinna (Pecorino Romano) and Luppi (Prosciutto di Parma) branded products. It also imports and distributes under the “Ambriola” brand Pecorino Romano, Parmigiano-Reggiano and Grana Padano. In the last financial year it had a turnover of 52 million dollars, with an increase of 10% over the previous year.

“The American market – added Auricchio – is for us the number one in terms of export share; moreover, more than 50% of the turnover of Ambriola already came from our Auricchio, Locatelli and Giovanni Colombo brands.Also, in the near future, we will be able to expand the range of Italian products to other food sectors”.

In 2014, the Auricchio Group had turnover in excess of 200 million euros, with growth of 2% in Italy and 8% in exports.

Made in Italy food, the king is Parmigiano Reggiano

By
fabrizio.gomarasca
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Parmigiano Reggiano has won the first prize in an ideal “contest among giants”, featuring Made-in-Italy culinary excellences. This is the result of a contest sponsored by the website I Love Italian Food, a non-profit organisation founded in 2013 with the mission of defending and disseminating the culture of quality Italian food among over 700 thousand Italian food enthusiasts worldwide.

The "Magnificent 12" according to the I Love Italian Food ranking
The “Magnificent 12” according to the I Love Italian Food ranking

Asked to choose the icons of Italian cuisine from a list of typical products and recipes of our country, the visitors of the website made their choice. The web-based consultation, held in November, elected Parmigiano Reggiano with 20% of the overall vote. Completing the podium, in order of merit, were pasta and Parma ham. Followed by extra-virgin olive oil and pizza. And there were a few surprises. For example, two symbols of Italianness, such as cappuccino and tomato puree, didn’t even make the top ten.

And the initiative doesn’t stop there: the 12 most voted products and recipes will be included in the project: “2015: a 100% Italian Year”. Bringing the best out of them will be as many maestros of Italian cuisine, including Heinz Beck, Cristina Bowerman, Moreno Cedroni and Antonella Ricci. Each I Love Italian Food chef will be asked to interpret, in the form of a recipe, a symbolic product, giving rise to the visual of a non-profit communications campaign to promote Italian culinary excellences worldwide.

“This contest has shown us which are the true ambassadors of made-in-Italy taste abroad. And also which treasures of our cuisine need to be promoted since they still are struggling to enter the hearts of foreign foodies – said Alessandro Schiatti, founder of I Love Italian Food -. We are convinced that food represents the true oil of Italy, an important driver for our economy. This motivates us every day to disseminate and defend the culture and values of the Italian agrifood system”.

The campaign “2015: a 100% Italian Year” will also accompany the I Love Italian Food project, “100% Italian”, that aims to present to foreigners our products, traditional recipes and companies that today are involved in producing food with a 100% Italian supply chain. The project will be officially launched in January 2015.

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