Italy BUSINESS Flashcards

1
Q

Briefly outline important trends in Italian wine production since the 1960s

A
    • Improvement in Q
    • Increased value of exports
    • SST + temp control
    • BDX blends in Tuscany
    • Emphasis on local grapes recently
    • Commercial success of Prosecco
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2
Q

Outline Italy’s system of wine regulation / PDOs including defined terms.

A

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.
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3
Q

What is the average vineyard holding in Italy? What is Italy’s largest wine-producing company?

A

Small <2ha –> growers usually sell to co-ops and merchants

Caviro - giant co-op that operates across several regions

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4
Q

Outline trends in domestic consumption and exports.

A

Domestic consumption in long-term decline

40% of wine exported

US, Germany then UK

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5
Q

Describe the structure of production in Trentino cf. Alto-Adige

A

Landholdings - small

Co-ops very important 80%

Cavit

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6
Q

Why do many quality producers use Vigneti delle Dolomiti IGT instead of Trentino DOC?

A

Very high % of wines use DOC (high yields allowed) so don’t want to be associated with poor quality e.g. Foradori

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7
Q

Under DOC rules, what categories of wine can there be? (3) Alto-Adige

A
  • Bianco - Chardonnay, Pinot Bianco, Pinot Grigio, no single variety >70%
  • Single variety, >85%
  • Two variety blends with >15% of each
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8
Q

Where is wine sold - Alto-Adige?

A

75% domestic - 1/2 of that sold within the region via tourism

25% export - Germany and US

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9
Q

Outline reasons behind the increase in exports by value between 2013-18 (3)

ID three threats to continued growth. - Friuli

A

55% growth in five years

  1. Strong reputation for quality
  2. Increased demand for PG and Prosecco
  3. Better promotion of red varieties esp. Refosco

Threats

  1. Cheap PG being produced in Italy
  2. Emerging quality areas like Trentino-AA
  3. Cheap wine from Eastern Europe
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10
Q

Describe the production structure of Soave

A

SMALL Vineyard holding

Co-Op → Cantina di Soave - 50%

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11
Q

Which regions have presented challenges to Soave? What has the impact been? How is this being addressed?

A

Challenge Inexpensive PG from elsewhere in Veneto

Impact Reduced export volumes

Responses

  1. Pulling up Garganega vines to replace with PG
  2. Classifying single vineyards following soil, aspect, elevation survey –> 33 single vineyards approved
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12
Q

Why is Amarone made at such a variety of quality levels?

A

High demand means lots of volume production so Q ranges from good to outstanding

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13
Q

What is the Valpolicella Consorzio?

A

Industry body representing >80% of producers of DOC(G) wines

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14
Q

Outline production trends in Amarone and Ripasso.

What impact has this had on the production of Valpolicella?

A

Amarone up 6x since 90s

Ripasso up 4x

Production of Valpolicella down 40% as growers receive better money for dried grapes

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15
Q

What % of Amarone is exported? Where is it sold?

A

65% export - Germany, US, Switzerland, UK

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16
Q

Describe the production structure in Langhe/Piemonte (4)

A
  • 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
17
Q

Why has Piemonte been so successful in exporting its wine? (4)

A

85% of Barolo exported, 75% of Barbaresco

  1. High-quality production - wines have ageability
  2. Lack of consolidation means larger number of quality focussed producers
  3. Sub-zone focus supported by MGA improve prices for best sites - production in investment
  4. Rising pricing for BDX and Burgundy forcing collectors to look for alternatives
18
Q

To what extent Tuscan wine vary in terms of price and quality?

A

Hugely - from inexpensive wines made by co-ops to premium/SP wines

19
Q

To what extent are exports important for Chianti, CC, Brunello and Montepulciano?

A

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

20
Q

In general, what is the difference in route to market between inexpensive and mid-super premium Tuscan wines.

A

Inexpensive via supermarkets and bars

Higher-end via wine shops and restaurants

21
Q

What unique features of Tuscany are used to promote the region’s wine (4)

A

Wine history - Chianti

World-class quality - Montalcino, Bolgheri

Tourism and architecture - region-wide

Anteprima annual tasting for journalists/buyers - region-wide

22
Q

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?

A

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

  1. Region best known for inexpensive wines –> lots of competition
  2. Rise of Pinot Grigio in NE of Italy has eaten much of that market
23
Q

What has happened to the vineyard area in Frascati? Where is most of it sold?

A

In decline –> inexpensive wines for local market; DOCs like Frascati see 60% of production exportd

24
Q

How much wine does Abruzzo produce?

A

Quite a lot - 5th largest producer ahead of Tuscany and Piemonte, mainly via co-ops

25
Q

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?

A

75% by co-ops

Most are inexpensive - this good GPR means exports important esp. to northern Europe and North America

26
Q

Describe the structure of wine production in Campania.

A
  1. 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
  2. Co-ops play sig role in certain proviences e.g. La Guardiense
27
Q

Where is Aglianico del Vulture sold? How is it being promoted?

A
  • 50/50 export/domestic split
  • Generazione Vulture young growers promoting the region
28
Q

In general, why does quality vary between basic and premium versions of Puglia’s wines? (3)

A
  1. DOC/DOCG brings down max y
  2. Longer maceration as less risk of underripe tannins and more extraction required for style
  3. Oak ageing often backed by Riserva requirements
29
Q

What role do co-ops play in Puglia? Which companies have invested in quality production?

A

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

30
Q

What is unusual about the production structure of Sicily’s wine production?

A

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

31
Q

What is Assovino Sicilia?

A

A trade group representing 80% of Sicilian wine by value - promotes wine around world including annual tasting of newly released wines

32
Q

What % of production is under PDO in Sardinia?

To what extent have efforts to improve exports been successful?

A

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