ITALY / ROUND TABLE: The light stuff

Italy’s wine industry is thriving, driven largely by strong sales of Pinot Grigio. But which direction should the country take next to ensure continued success? A panel convened by Enotria and the drinks business considered the issues. By Ben Grant

The Italian wine trade is in good health. Spurred on by the sensation that is Pinot Grigio, it is recording strong growth and has an incredibly positive perception in the mind of the average consumer. The fragmented nature of the category, however, continues to present a unique challenge. So where next for Italy? In order to assess the current status of the category and consider what future direction will allow it to flourish, the drinks business teamed up with Enotria and convened a panel of on- and off-trade Italian specialists. Fittingly, the round table debate took place at Pizza Express, a prime example of a strong brand that has played a significant role in making Italian food and drink the cuisine of choice in the UK.

Given the enormous recent success of the varietal around the world, it will come as little surprise to hear that the conversation immediately turned to Pinot Grigio. However, does this great performance – and particularly the fact that the grape has now been adopted by so many other wine growing regions – represent a hindrance for Italy?  Whitbread’s Eileen Ginger kicked off the proceeding by saying: “Consumers definitely like Italian wines, but they don’t have a clue about them. Most people don’t actually realise that Pinot Grigio is a varietal, and other than this grape we struggle.” Camilla Bordewich then continued by reporting that Majestic’s Italian offer is split virtually 50/50, with half of all sales being Pinot Grigio.

Italian style
 Enotria’s Alison Levett then continued by highlighting the incredible level of acceptance that Italian wine enjoys. “There’s such a strong association in the consumer’s mind,” she explained. “UK consumers love Italian food, style and culture. There’s no doubt that Pinot Grigio has played a role in getting Italy on the map, but the category has been growing solidly for years – it’s definitely not just a sudden phenomenon.” Supporting her point about the longevity of the trend, consultant Hew Dalrymple then pointed out that the varietal has generated growth of 60%, crucially from a big base.

While rosé may be grabbing the headlines these days, the growth in light, aromatic wines – driven principally by Italy’s most famous grape – has been an even more significant success story. Andrew Shaw of Waitrose explained that “five years ago perhaps Pinot Grigio was seen as being cheap and boring, but now producers are making something quite interesting”. Dalymple then continued by explaining, “Others are moving in on Pinot Grigio, but without a doubt consumers see it as Italian.”

“If I changed all my Italian wines to Pinot Grigio I could undoubtedly sell more,” said Shaw. “But I have a concern about going too far down that route, so you can’t get back. What we need is a broad spectrum of varietals.” Undoubtedly the grape has done wonders for the country, but how can the category capitalise on this success and move forward?  It is, after all, a region riddled with complexity – as Bordewich pointed out, “even within the trade many people struggle to understand the category, so what’s the hope for consumers?” And Levett emphasised, “Research shows that they clearly feel positively about Italy, but they don’t know where to go next.”

Going forward
According to Ginger, the most effective strategy from an on-trade perspective will be to create “wine trails”, giving advice and recommendations to consumers who have been attracted by Pinot Grigio about which direction to explore next. Dalrymple, meanwhile, suggested that the generics are the best route forward, stating that, “Italy can learn from the likes of Blason de Bourgogne.” Shaw agreed, and pointed towards Sicily as an example of a region that’s performing well in terms of “doing the simple things well and increasing consumer perceptions”. All of the panel agreed that Sicily looks set to be an increasingly significant force – as Bordewich said, “Sicily is producing lots of attractive, easy-to-understand whites, that people who enjoy NZ Sauvignon Blanc will really enjoy.” Chianti, on the other hand, has not managed to tap into consumer desire for a consistent, reliable, easily-navigable generic. “The name has a good resonance, but it doesn’t deliver a premium generic product in terms of consistency,” said Dalrymple. Bordewich then commented, “A lot of the old generics are seen as cheap and cheerful. The Soave name has really been damaged; it took a lot of convincing for me to explain to one of my team that an £8 Soave was worth the price.”

The discussion turned to the possibility of a strong and unified generic body, but, as Enotria’s Damian Carrington pointed out, this seems a highly unlikely outcome. “There’s simply not going to be an effective Italian generic body, full stop. Italy is a relatively new country and the people see themselves as coming from their region, not from Italy. They’re not going to work together.” Not only does this impact on the ability to present a unified category marketing message, but as Shaw explained, it also means that suppliers do not share their fruit, so it is very difficult to generate the volumes required for a brand big enough to satisfy supermarket demand.

The next generation
The panel were unanimous in believing that the Italian producers need to be more consumer focused in their outlook. However, anecdotal evidence suggested that instilling this culture will be a big task. “They don’t tend to respond to advice when I meet with producers,” said Bordewich, “for example, they are reluctant to put information on the front label – because they think that’s not the way things are done.” While this culture is deeply ingrained, Carrington gave cause for hope saying, “There’s a generational shift taking place at many wineries. Businesses are being handed down to the next generation who are more internationally savvy. People are more willing to listen than ever before.” This is undoubtedly changing the culture, however, the nature of the industry means it will still take some time to filter through. The fact that many Italian wines are produced with the home market in mind – rather than export – is also a relevant factor.

Italian cusisine is, of course, revered around the world, and the panel next turned their attention to the subject of food and wine pairing. Carrington pointed towards the likes of Pizza Express, Strada and Carluccio’s, emphasising the crucial role that they can play in terms of educating consumers, and helping them to navigate the category. “When they’ve tried a glass in Carluccio’s, hopefully they’ll buy into the varietal when they’re next in the supermarket.” Tellingly, however, Shaw then argued that “as retailers we don’t do the whole food and wine thing well. It works for the foodies, but there’s a danger of excluding everybody else”. A particularly intriguing comment given the high level of food and wine knowledge among Waitrose’s consumer base.

Keep it simple
Pronunciation of confusing indigenous varietal names is another hurdle that stands in the way of the category – prompting Ginger to suggest a simple solution. “If people can’t pronounce the wine they won’t order it, and if my staff can’t pronounce it they won’t recommend it. The more we can do to simplify and educate the better – I’d like to see suppliers putting phonetics onto the bottle.”

There is no doubt that the category needs to face up to some pretty serious challenges in order to fully realise its potential. However, there was an overwhelmingly positive atmosphere pervading the discussion. The quality of wine has improved dramatically in recent years, the growing environment is perfect for producing the kind of light, aromatic wines that look set to dominate sales in the coming years and – best of all – Italy occupies a very special place in the mind of the average consumer. As the panel rounded off the debate and tucked into a selection of Enotria’s wines, there was unanimous agreement that Italy is perfectly positioned for continued growth.

© db July 2007