Italy On-Trade – Twin Peaks

Gastropub-friendly Prosecco and Pinot Grigio have led a strong Italian performance in the on-trade, despite Italy’s standing having been seriously undermined by the insatiable thirst for the New World, says Ben McFarland

During my university days, my history lecturer once discreetly told me that a reliable strategy to gain a few extra marks in an exam was to describe Italy as a nation in “a state of flux.” A sweeping statement, maybe, but one that has served slapdash, ill-informed students extremely well. For, regardless of century and the European political climate, Italy was almost always in the throes of controversy, conflict or confusion and fleeting mention of such turmoil was a guaranteed tick gainer.

A similar tactic can be employed when summarising the state of Italian wine in the enigmatic world of the UK on-trade. In fact, “a state of flux” is a rather apt descriptor for the Italian wine industry’s current relationship with British bars and pubs.

Like its old world companions, Italy’s standing in the on-trade has been seriously undermined by the seemingly insatiable thirst for the New World. But compared to the off-trade where Italy has slumped to fourth place behind California, France
and Australia – and with South Africa breathing down its neck – Italy is still on the on-trade podium.  

According to figures compiled by ACNielsen, Italy has just about held its position as the third largest country in the on-trade following France and Australia and just ahead of South Africa.  

“Italian wine accounts for a 16% share of the on-trade market and growth is positive but relatively modest,” said Stewart Blunt of ACNielsen. “One can only surmise that Pinot Grigio is driving this expansion. Obviously Pinot Grigio is pinching share from German wines which continue to lose position in the market. Pinot Grigio is filling the gap as a trendy alternative to the weakening Liebfraumilch and Hock.”

According to data compiled by Wine Intelligence, as part of its bi-monthly appraisal of national drinking trends, there’s little sign of Pinot Grigio’s star fading. “The traditional Pinot Grigio is challenging Sauvignon Blanc as the UK consumer’s number two white varietal,” says Brian Howard, director of business development at Wine Intelligence. “We’ve watched Pinot Grigio charging up the charts,” he adds. “It’s clearly not as popular among the adventurous connoisseurs but there aren’t many of them.”

Pinot Grigio is currently blazing quite a trail in the pub trade, fuelled by the support of a number of major multiple operators, but how has it gained such a strong following among the casual drinking masses? “They know it’s safe, they know the cost, they know what it’s going to taste like and they know it’s socially acceptable,” says Howard.

Exactly how much Pinot Grigio is flying off the back bar of pubs and bars is difficult to estimate. The on-trade is an elusive animal as far as cast-iron facts and figures
are concerned. Without bar codes, comprehensive EPOS data and suchlike, tracking trends and sales of particular grape varieties is rendered a rather murkier business than it is when scrutinising the off-trade. Suffice to say, however, there’s more than anecdotal evidence to prove that Pinot Grigio is leading the charge as far as Italian wine is concerned. Laurel Pub Company, a major player in the pub arena with more than 400 managed outlets and brands including Yates’s, Santa Fe and Ha! Ha! Bar & Canteen, is a case in point. According to Jason Danciger, Laurel’s director for marketing and catering, Pinot Grigio accounts for more than 50% of Italian wine sales across the estate.

“People within the pub world want wines full of character but drinkable and not too over-powering and Pinot Grigio fulfils this extremely well,” he says. “Pink Pinot Grigio also worked extremely well for us during the summer.”

Take Pinot Grigio out of the equation, though, and what has Italy got to offer restaurant and bar owners? Mark Soudah, director of sales at Enotria Winecellars, which has furnished the on-trade with a dazzling array of exclusive Italian wines for the last 33 years, cites diversity and no small amount of innovation.

Enotria, which has exclusive links with wineries in each of the country’s 48 regions, is sole supplier to a number of Italian restaurant chains such as Strada and Carluccio’s as well as Geronimo Inns, an upmarket pub group with venues throughout West London.

“People’s repertoire of Italian wine is slowly expanding and Italy, as a wine-producing nation, is really opening its mind too,” he says. “Italy is no longer about straight Soave, Pinot Grigio and Frascati. It has changed enormously in the last 10 years and there are tiny wineries producing some really fantastic wines.”

Soudah points to producers in the south of Italy as a case in point. “There’s a real resurgence in the south where producers are not shackled by the DOC restrictions. Puglia and Sicily, (which produces more wine than the whole of Australia), are offering traditional grape varieties in a modern format with modern packaging.”

Enotria has recently expanded its portfolio of southern Italian wines with the addition of Feudi di San Gregorio, one of Italy’s most dynamic wineries. With vineyards in Campania, Basilicata and Puglia, Feudi offers a range based entirely on indigenous southern Italian grape varieties. “These are wines with a real point of difference,” says Soudah. “Feudi and Planeta from Sicily are the kind of wines with which venues can transform perceptions of Italian wine.”

Innovation is by no means exclusive to the south, however, with Italy’s upper reaches offering equally exciting wines. “The classic wineries are bringing out Super Tuscan wines, almost Bordeaux in style, such as Barone Ricasoli from Brolio.”

David Gleave, managing director of Liberty Wines, a principal purveyor of Italian wines to the on-trade, agrees that traditional producers are no longer dragging their feet. “We’re seeing the return of classics like Valpolicella and Chianti and we’re also seeing the lesser-known wines from the northeast and indigenous varieties gaining momentum,” he says. “I’m particularly optimistic as Italian wines have had a very strong year in the on-trade. We’ve seen growth of over 20% and that’s across different levels ranging from the Gordon Ramsay establishments down to the pub chains.

“If you went into a pub 15 years ago the Italian wine would have been a two-litre screwcap bottle, but today you go into a pub and you’re likely to be offered a range of wines from across Italy,” continues Gleave. “There are a lot of traditional producers doing a great job and many that have managed to step outside the DOC and make interesting wines.”

He adds that Italian wine was particularly well-placed to tap into the growth and expansion of food-led pubs. The last couple of years have seen Liberty Wines carve a lucrative Italian niche among gastro-style pubs. “Stylistically, it fits very well as the consumer wants wine that’s both complex and accessible,” says Gleave. “Italy is very good at making drinkable, slightly dry and racy neutral whites that are great with food.”

Jason Danciger agrees that one of Italian wine’s greatest on-trade strengths lies in its kinship with grub. “Italian wines stand up remarkably well to food and they have a higher consumer confidence ratio than France. Italian wines represent a much simpler proposition for the average drinker. I’d say that Italian wines are in a healthy state really,” he adds. “Italy has a relatively positive following and there are a lot of wines that are well-known among drinkers.”

Brian Howard of Wine Intelligence is quick to sound a word of warning, however. “There should be concern about the health of Italian wines across the consumer spectrum as neither the traditional lower end nor the top end, home to Tuscan wines, are really growing.”

He believes that the success of Pinot Grigio is papering over some significant cracks. “They need to broaden their act beyond Pinot Grigio as everyone from the New World to eastern Europe is jumping on the bandwagon and the Italian stranglehold is loosening. Italy needs a stronger, more accessible brand in the red category than it has at the moment. Chianti simply hasn’t stepped up with the same gusto that Rioja has.”

Climbing without a ladder
Much ink has been spilled about Italy’s wealth of wine and its stunning diversity but arguably more, in recent times, has been written about the Italians’ fragmented focus and their haphazard efforts to promote a coherent message over here. “In the on-trade, other countries have provided the consumer with a clear ladder to climb up in terms of price and style,” argues Howard. “But when it comes to Italian wine there’s nowhere for drinkers to go and they need to be given guidance. It’s a long-term issue that needs addressing. There’s a big lack of a brand and a lack of a generic campaign. It just hasn’t happened for Italy and this means every little producer has to work a little harder to gain a footing.”

Nick Bielack of Bibendum echoes these sentiments: “Until there’s money and a generic campaign for Italian wine there are never going to be any changes in the perception of Italian wine. It’s just too complicated for drinkers to get their heads round. People are very willing to try Italian wine, but above the £20 level the risk at the moment is simply too great.”  db February 2006

TRULLI UNIQUE
One of the biggest Italian brands in the pub trade is Trulli, a range of soft and fruity wines from Waverley TBS, launched in 1995 and including a Chardonnay, Primitivo and a Pinot Grigio among others. Volume has doubled in the last year thanks to the Pinot Grigio craze and listings with a handful of major multiple operators. “The trade had been calling out for a recognisable and reliable Italian brand for a long time,” says Jeremy Dunn, Waverley TBS brand manager. “The wines are very well positioned, have great fruit structure and are quintessentially Italian yet without the Old World baggage.”

Italian attempts to mirror the deeply coloured, soft-textured and fruit-filled flavours of the New World have so far been confined to a handful of innovative players in the south. “There’s been much trade talk of these wines,” says Dunn, “but it’s more exciting to concentrate on the Italian generics. Compared to other Old World countries, Italy hasn’t been through the rough time that, say, France has, and Soave, Chianti and Valpolicella are innovating, pushing forward and are well positioned to expand. Italy doesn’t have any competition when it comes to its distinctive style of wine and it’s in these areas where they could really prosper.”

LOYAL LISTINGS
“The Italian restaurant trade continues to support the Italian wine industry,” says Ian Smith, commercial director for on-trade wholesaler Matthew Clark, “not only by featuring well known favourites (such as Barolo, Soave, Valpolicella, Frascati, Chianti, etc) but also by introducing many of the new wave Italian wines. 

“Even large groups such as Pizza Express, Zizzi and Ask are keeping their wine lists interesting, offering unusual and innovative wines. There is no doubt that this does generate consumer interest although there is little sign of the major off-trade retailers/grocers supporting this with shelf space.

“Italy is getting recognition for its range of styles, high quality and great value. Indeed, the old favourites are all making a comeback in the on-trade,” he adds. “Drinkers are recognising the what a favourable comparison there is in terms of quality and value against many New World alternatives.

“At the lower price points, Italy is able to provide wines at a quality and a price that the New World can’t match. There also is some evidence that the lighter and lower alcohol styles of Chardonnay and Pinot Grigio are finding favour, particularly as house wines, against their New World counterparts.”

IMPROVING PROSECCO
Prosecco, produced in the Veneto region, has widely been hailed as the fast-rising bubble in the extremely effervescent sparkling wine sector. While sales of all sparkling wines remain dwarfed by Champagne, the surge of the New World has broadened wine drinking horizons and heralded a new consumer approach to Prosecco and other sparkling wines.

Nick Bielack, Italian wine specialist at Bibendum, describes the growth of Prosecco in the on-trade as “exponential”. Bibendum introduced Bisol two years ago and within six months it had been thrust onto its list of top 100 selling wines. “It’s been incredible,” says Bielack. “It has always been popular among Italian restaurants but now it’s spreading out right across the board to other venues. We’ve seen a lot of growth at gastropub level where Prosecco is seen as an accessible and competitively priced sparkling wine that matches well with food. There’s nothing better than a glass of Prosecco and a little prosciutto!”

Bielack attributes the change in Prosecco perceptions to an improvement in quality, spearheaded by a handful of top-end brands. Leading the charge of the light Italian brigade is Bisol followed by Nino Franco and Adami.

“People are surprised when they taste quality Prosecco,” he says. “It’s less acidic than Champagne, more fruity and doesn’t rush to your head with the same venom. It’s a very addictive drink.”    Light, versatile and less expensive than Champagne, Prosecco is also gaining a strong foothold in the upper echelons of the UK bar scene with bartenders showing increasing faith in the Italians as a legitimate alternative to French bubbly.

In the all-important quest for authenticity, many mixologists reach for Prosecco when making the classic Bellini cocktail, and, according to Simon “Ginge” Warmeford, head bartender at the Blanch House in Brighton, “It’s gone beyond just being seen as a mixer in a cocktail, with many bars selling top-end labels by the glass as stand-alone fizz.”

db February 2006