Italy BUSINESS Flashcards
Briefly outline important trends in Italian wine production since the 1960s
- Improvement in Q
- Increased value of exports
- SST + temp control
- BDX blends in Tuscany
- Emphasis on local grapes recently
- Commercial success of Prosecco
Outline Italy’s system of wine regulation / PDOs including defined terms.
No GI - Vino
PGI - (IGT)
PDO - (DOC)
PDO - (DOCG)
- Stricter controls on yields, wine must pass tasting panel
Defined terms:
- Classico – grapes → historical area
- Superiore – higher min abv
- Riserva – at least 2 years → red, 1 year → white. Some individual DOC/DOCG specify part of it must be in oak.
What is the average vineyard holding in Italy? What is Italy’s largest wine-producing company?
Small <2ha –> growers usually sell to co-ops and merchants
Caviro - giant co-op that operates across several regions
Outline trends in domestic consumption and exports.
Domestic consumption in long-term decline
40% of wine exported
US, Germany then UK
Describe the structure of production in Trentino cf. Alto-Adige
Landholdings - small
Co-ops very important 80%
Cavit
Why do many quality producers use Vigneti delle Dolomiti IGT instead of Trentino DOC?
Very high % of wines use DOC (high yields allowed) so don’t want to be associated with poor quality e.g. Foradori
Under DOC rules, what categories of wine can there be? (3) Alto-Adige
- Bianco - Chardonnay, Pinot Bianco, Pinot Grigio, no single variety >70%
- Single variety, >85%
- Two variety blends with >15% of each
Where is wine sold - Alto-Adige?
75% domestic - 1/2 of that sold within the region via tourism
25% export - Germany and US
Outline reasons behind the increase in exports by value between 2013-18 (3)
ID three threats to continued growth. - Friuli
55% growth in five years
- Strong reputation for quality
- Increased demand for PG and Prosecco
- Better promotion of red varieties esp. Refosco
Threats
- Cheap PG being produced in Italy
- Emerging quality areas like Trentino-AA
- Cheap wine from Eastern Europe
Describe the production structure of Soave
SMALL Vineyard holding
Co-Op → Cantina di Soave - 50%
Which regions have presented challenges to Soave? What has the impact been? How is this being addressed?
Challenge Inexpensive PG from elsewhere in Veneto
Impact Reduced export volumes
Responses
- Pulling up Garganega vines to replace with PG
- Classifying single vineyards following soil, aspect, elevation survey –> 33 single vineyards approved
Why is Amarone made at such a variety of quality levels?
High demand means lots of volume production so Q ranges from good to outstanding
What is the Valpolicella Consorzio?
Industry body representing >80% of producers of DOC(G) wines
Outline production trends in Amarone and Ripasso.
What impact has this had on the production of Valpolicella?
Amarone up 6x since 90s
Ripasso up 4x
Production of Valpolicella down 40% as growers receive better money for dried grapes
What % of Amarone is exported? Where is it sold?
65% export - Germany, US, Switzerland, UK
Describe the production structure in Langhe/Piemonte (4)
- Unusually high % of estate production, often small and family-owned
- Very little consolidation cf. Tuscany
- Possible to make and market own wines due to high price for Nebbiolo
- Some large producers e.g. Fontanafredda
Why has Piemonte been so successful in exporting its wine? (4)
85% of Barolo exported, 75% of Barbaresco
- High-quality production - wines have ageability
- Lack of consolidation means larger number of quality focussed producers
- Sub-zone focus supported by MGA improve prices for best sites - production in investment
- Rising pricing for BDX and Burgundy forcing collectors to look for alternatives
To what extent Tuscan wine vary in terms of price and quality?
Hugely - from inexpensive wines made by co-ops to premium/SP wines
To what extent are exports important for Chianti, CC, Brunello and Montepulciano?
Very important for all four
Exports are 70-80% for all four (by value) - the US, Germany, Canada are all important markets
Most Chianti exports are low value
In general, what is the difference in route to market between inexpensive and mid-super premium Tuscan wines.
Inexpensive via supermarkets and bars
Higher-end via wine shops and restaurants
What unique features of Tuscany are used to promote the region’s wine (4)
Wine history - Chianti
World-class quality - Montalcino, Bolgheri
Tourism and architecture - region-wide
Anteprima annual tasting for journalists/buyers - region-wide
How much of Marche’s wines are sold and consumed within Italy. Which companies have bucked this trend. What are the current challenges to growing the export market for these wines?
2/3 sold by value sold within Italy but private companies and co-ops have had success e.g. Umani Ronchi exports 70% of production incl. super-premium wines e.g. Pelago
Challenges
- Region best known for inexpensive wines –> lots of competition
- Rise of Pinot Grigio in NE of Italy has eaten much of that market
What has happened to the vineyard area in Frascati? Where is most of it sold?
In decline –> inexpensive wines for local market; DOCs like Frascati see 60% of production exportd
How much wine does Abruzzo produce?
Quite a lot - 5th largest producer ahead of Tuscany and Piemonte, mainly via co-ops
Most Abruzzo wine is made by which kind of producer?
What price point is most wine sold for and to what extent are exports important?
75% by co-ops
Most are inexpensive - this good GPR means exports important esp. to northern Europe and North America
Describe the structure of wine production in Campania.
- Large companies play an important role - owning vineyards across multiple DOCs → resources to promote and export wines and varieties from Campania e.g. Feudi di San Gregorio
- Co-ops play sig role in certain proviences e.g. La Guardiense
Where is Aglianico del Vulture sold? How is it being promoted?
- 50/50 export/domestic split
- Generazione Vulture young growers promoting the region
In general, why does quality vary between basic and premium versions of Puglia’s wines? (3)
- DOC/DOCG brings down max y
- Longer maceration as less risk of underripe tannins and more extraction required for style
- Oak ageing often backed by Riserva requirements
What role do co-ops play in Puglia? Which companies have invested in quality production?
Co-ops are very important w/ scale to invest in high-tech winemaking + mkt wines domestically/int’l e.g. Cantina Due Palme
Quality production has come from a mix of local companies and outside producers
What is unusual about the production structure of Sicily’s wine production?
A small number of large businesses control a large chunk of production e.g. Donnafugata
Co-ops also important e.g. Settesoli works with 7% of vineyard area
What is Assovino Sicilia?
A trade group representing 80% of Sicilian wine by value - promotes wine around world including annual tasting of newly released wines
What % of production is under PDO in Sardinia?
To what extent have efforts to improve exports been successful?
2/3 - high as producers forced to move away from bulk production with the removal of EU subsidies
Limited success - exports flat for past decade
