Made in Italy food excellence: export data and new dangers for its protection

Christmas Holidays have just finished and so we can analyse data about Italian products purchasing during last days of 2014. In effect, statistics point out that exportation for Made in Italy traditional Christmas deliciousness increased if compared with the same period of 2013. So which are the “best sellers”? You will discover it reading the first part of this article. Afterwards, we are going to put our attention to a related argument: new EU rules for food labels and risks for Made in Italy.

Part one

PANETTONE OR PANDORO: WHICH IS YOUR FAVOURITE ITALIAN CHRISTMAS CAKE TO PAIR WITH SPUMANTE?

In Italy, Panettone and Pandoro are symbols of traditional Christmas cakes. People main amusement is choosing between Milan and Verona, respectively the two cities where Panettone and Pandoro were born, and this is real challenge. Abroad, it is not the same: people love Made in Italy cakes without no competition.

The famous Italian traditional Christmas cakes: Pandoro and Panettone

The famous Italian traditional Christmas cakes: Pandoro and Panettone

Confartigianato, the Italian craftsmen and SMEs Association, claims that cakes exportation reached 280 millions of euros during 2014. In addition, research points out that the most “gourmand” countries are:

  • France → export value €77,1 millions (with a growing purcentage of 10,8%)
  • Germany → export value €40,7 millions
  • United Kingdom → export value €31,4 millions

Quality and tradition, together with artisan skills, make food the Italian export excellence. Thanks to 90.980 artisan businesses, Italy has 261 food products with protected designation of origin (DOP, IGP, STG) and so “she” is the EU leader. As we can see, the other EU countries are left behind:

  • France: 208 products
  • Spain: 173 products
  • Portugal: 123 products

In addition, exportations positive trend help artisan businesses growth: production workers reached 158.368 units in 2014 and this means 5,4% more than 2013. Confartigianato reveals that Italian areas with the higher number of craftsmen are:

  • Lombardy (11.209 enterprises)
  • Sicily (10.127 enterprises)
  • Emilia Romagna (8.166 enterprises)

These features confirm that Made in Italy is a cultural inheritance to protect.

Spumante is another product which has a worldwide diffusion.

Famous Italian wine: Spumante

Famous Italian wine: Spumante

The famous bottle of wine is tipically uncorked during December 31st night in order to drink to the new year and so it’s connected to parties and other happy moments.

According to Coldiretti, the Agricultural Association, Italian spumante successfully won the market challenge with 170 millions of bottles consumed abroad, even 24% more than in Italy! We can easily affirm that Made in Italy is really appreciate and export is an engine for economic growth.

 

Part two

NEW EU RULES: HOW ARE THEY GOING TO CHANGE INFORMATION FOR FOOD? 

New EU regulation for food labels

New EU regulation for food labels

EU introduced new regulation 1169/2011 concering food labels, which entered into force on December 13th 2014. The original intention is making information easier to read for customers, especially for allergic ones.

In particular, the main points to take into consideration are the following:

  • better legibility for labels using a stardard minimum size of text
  • allergens must be highlighted with different fonts, style or background colours. This rule is valid for non pre-packed food too, such as food sold in restaurants
  • indication of vegetable origin of refined oil or fats is obligatory
  • mandatory date of freezing or first freezing and indication of defrosted sold products
  • mandatory country of origin for meat (beef, pig, sheep, goat and poultry), fish, fruit and vegetables, honey, extra virgin olive oil
  • name of business operator is obligatory
  • place of provenance of food is optional except for products already listed

IS REAL MADE IN ITALY IN DANGER?

Italian Government believes that last point of this rule is absolutely negative for both food export and customers. Italian companies are going to keep manufacturing plants information because Made in Italy sounding is a precious value. They are convinced that the more label is clear the more clients trust in their brands chosing their products. It’s a matter of reliability and honesty. In this way, they obtain sales increasing and they are able to establish long-term relationships with customers.

On the other hand, foreign enterprises may avoid to indicate their places of provenance and this means less control, less quality and less clearness. In effect, many international corporation outsource their production and so it is not easy to understand where food  really comes from. As a consequence, Italy wants EU to revise its decision. As Coldiretti points out, new labels rules are not the proper solution to save Made in Italy from frauds and forgeries, for which customers are often not informed. On the contrary, labels are anonymous for a large part of everyday products, such as milk or ham.

In addition, another danger is about to arrive: USA and China are discussing about a commercial treaty which allows American enterprises to export Italian and European counterfeit cheese into Chinese market. If this treaty was realized, protected designation of origin products would lose market shares and credibility. This would be a damage both for export and for Made in Italy brand image.

Conclusion? EU has to raise the voice up against every attempt to attack quality, authenticity and health protecting products which are typical of its history and culture.

Made in Italy: a valuable brand to protect

Market research confirms that “Made in Italy” is the third brand in the world for international customers’ appreciation and awareness. This means that Italy has to introduce rules and strategies in order to protect its advantage. Italian Chamber of Deputies made one step closer to this purpose by approving EU law concerning extra virgin olive oil, which is one of the most famous symbols both for Made in Italy and for Mediterranean diet.

WHY DID EU INTRODUCE THIS LAW AND WHICH IS THE MAIN CHANGE?

We know that it’s quite difficult to distinguish Italian extra virgin olive oil from products coming from other countries without using a specific denomination about origin and composition on the packaging. As a consequence, many oil bottles used in public places, such as restaurants, have an Italian label but they really contain a mixture of oils. This happens because once the original product is finished or it is about to finish, the bottle is filled up with different oils which have nothing to do with Made in Italy. The same situation is diffused all along EU countries and so something had to be done in order both to inform customers and to protect brand from frauds.

Italian extra virgin olive oil

Which is the solution? Replacing traditional glass jugs with pre-sealed, non-refillable bottles that can’t be recycled when empty: this is the idea. A label indicating information about origin is also required: it has a different colour if the product is not Made in Italy and if it is a blend of oils coming from foreign countries.

It’s clear that this law is not only changing the way to serve olive oil but it’s a protection for Made in Italy import/export products: Italian clients are sure about what they are eating and international buyers know what they are importing.

Olive oil coming from other countries has not the same quality and security standards than Italian one and so a system which allows Made in Italy extra virgin olive oil traceability was required.

WHAT IS ITALY DOING FOR ITS BRAND PROTECTION?

Because of difficult economic situation, some Italian companies lost faith in political and financial system and so they used outsourcing strategies for their production. Now, they are coming back to Italy: they are aware that quality is tied up to their land and their roots. Being Italian, believing in Italy and being a part of this great country: these are the values which are encouraging pride in entrepreneurs.

After all, successful key factors for companies are:

  • having a strong and recognizable brand on both local and international markets
  • using brand to improve competitiveness and growth
Eu rules, Eu parliament, Eu commission

EU and Italy: together for “Made in Italy” brand protection

As previously told, Made in Italy is a brand to protect because it is a guarantee of quality, innovation, professionalism, reliability, attention to detail and durability. For this reason, Italian institutions launched a plan of action, which is about to be presented at EU Commission by EU Parliament member Mrs Simona Bonafé.

At present, there are two guide lines concerning the brand:

  1. custom rules approved by EU, which allow Made in Italy origin even if a product is only partially realized in Italy
  2. Italian decree 135/2009, art. 16, which introduces 100% Made in Italy concept

The plan of action aims to develop the second point as the main purpose is to certify the whole Italian production chain.

PLAN OF ACTION: WHICH ARE THE KEY POINTS?

This proposal wants to modify EU rules in order to avoid frauds, “Made in Italy” products imitation and deceptions for customers. Mrs Simona Bonafé hopes that Brussels is approving the following points before the six months of EU Italian premiership ends:

  • “Made in Italy” brand is only for products completely realized in Italy
  • Introduction of a national identification trademark
  • Companies can use this trademark only if their whole production chain is in Italy
  • A public institution is in charge of certifying and controlling companies
  • Certification has to be renewed once a year and it has a cost based on sales volume percentage
  • Proceeds have to be used to promote “Made in Italy” brand on markets
  • Introduction of tax benefits for companies which are using trademark
  • No benefits for companies which are choosing outsourcing strategies

Supporting companies, in particular small-medium ones, is essential to gain the challenge of export and to launch more and more real Italian products on foreign markets.

Sourcing Italy: this is the key for internationalization.

 

 

 

 

 

 

 

WHAT IS TRAFFIC LIGHT LABELLING AND HOW THIS SYSTEM DAMAGED EXPORT FOR “MADE IN ITALY” FOOD PRODUCTS

traffic light labelling system, made in Italy, food, import to Italy

Traffic light labelling system’s classification for food

Great Britain is the fourth international market for Italian food companies which sell their products abroad. This means business and export opportunities for € 2.500.000.000, as Italy’s food and drink industry body Federalimentare points out. As we can easily understand, Italian farmers were very disappointed when Great Britain Department of Health annonced a new project: using traffic light labelling for food products.

HOW DOES THIS SYSTEM WORK?         

Helping customers to distinguish bad food from healthy food and fighting fatness problems: these are the main purposes declared by English Minister Mrs Anna Soubry one year ago. Each food item is labelled red, yellow or green depending on its fats, salt and sugar contents for a 100 grammes quantity.

WHAT DOES IT MEAN FOR “MADE IN ITALY” FOOD?

Italian exportation for food were damaged by this decision because traffic light labelling system is too summary. It doesn’t take into consideration neither quantities that are consumed nor other nutritional components. In a very simple way, labels communicate that an item is not absolutely healthy and this is wrong. The right information is that the item marked “red” must be consumed with moderation.

Traditional Italian products for which “Made in Italy” is a worldwide brand, such as olive oil and Parmesan cheese, were classified as “bad food” while cola is marked “green” and we know it is not healthier than cheese.Market research points out that 67% of English customers don’t buy a product labelled “red” because this colour means “warning, danger” and so both import and export to Italy for food products are decreasing. In addition, Great Britain is not a Country renowned for light food or balanced diet and so if English Minister Mrs Anna Soubry thinks a label may solve fatness problems she is off the truck.

Parmesan cheese, import to Italy, sourcing Italy, Italian food, Made in Italy

A traditional “Made in Italy” food: Parmesan cheese

These are the reason why Italy decided to present this problem to EU Commission.
In particular, Italian EU Parliament members point out that labels are misleading and they don’t really help customers choosing healthy food as Great Britain claimed. On the contrary, customers are not responsible for their choices, they only look at the colour without analyzing the other components. It’s an easy and fast system but it is not realistic: if items marked as “red” were harmul for public health they would have been removed from both Great Britain and all international markets. As declaired by Paolo De Castro, Head of the European parliament’s agriculture committee, this system risks to damage quality products such as Italian ones.

WHICH IS EU COMMISSION’S DECISION ABOUT THIS SYSTEM?

Few days ago, Italy received an important confirmation: EU Commission decided to send a “letter of formal notice” to Great Britain, which has 2 months to answer. In case of no solution or no answer, Italian “dossier” will be submitted to EU Court. EU Commission confirms customers need information when choosing products but this is not the right method.

This success for Italy is justified by:

  • combined actions coming from all Italian EU Parliament and Commission members during this months
  • combined actions coming from Italian farmers, Federalimentari and other Italian Organizations
  • Italian Prime Minister Mr Matteo Renzi’s commitment to solve this situation
  • EU treaties’ rules

Concerning the last point, EU treaties allows free exchanges between European Union Countries. Each item which is produced and selled by an EU Country following its rules and its standard, legal and traditional procedures can be commercialized in other EU Countries. As a consequence, all EU members have to accept distribution and commercialization for EU products into their markets. Thanks to these rules, the whole Europe is a market without customs or restrictions. On account of this, traffic light labelling system is a clear discrimination against some products and this is not allowed.

Import to Italy, export companies and “Made in Italy” won this battle and this is a great success for the whole sector.