Bringing Italy to the World
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COMPANY PROFILE EATALY BRINGING ITALY TO THE WORLD Oscar Farinetti’s Eataly food chain has a turnover of €300m and ambitious plans for further international expansion, but he is also a major player in the Italian wine industry. Michèle Shah reports. 1/15 MEININGER’S WBI 1/15 MEININGER’S ataly is the world’s fastest-growing and New York’s second Eataly, to be opened this most successful international chain of year, will be in the new World Trade Center, Ehigh-end emporia dedicated to Italian food covering 5,000 square metres, with a theme and wine. The driving force behind this epicure- dedicated to world peace. an adventure is Oscar Farinetti and his family. Over the seven years since its launch, the Farinettis opened a total of 30 Eataly busi- Rapid growth nesses worldwide and achieved a 45% growth rate, increasing turnover from €33m in 2007 to Farinetti’s roots lie in the Langhe in Pied- €298m in 2014. mont. His mother was born in Barolo and his Eataly is still a family business with Oscar father, a wartime partisan and pasta maker, had Oscar Farinetti Farinetti very much at the helm, though today his roots in Barbaresco. Farinetti developed an at the age of 60 he is handing the reins to his interest in wine at an early age by working in three sons and dedicating his time to his real the local vineyards during his summer vaca- passion: wine. Apart from Francesco, Nicola, 31, tions. On graduating in economics from the manages the overseas stores, and Andrea, 25, University of Turin, he took responsibility for the youngest, an enology graduate, is responsi- the sales of electrical appliances in Unieuro, the ble for production at Farinetti’s nine wineries. supermarket business his father had launched in Alba in 1967. A controversial choice While building Unieruro into Italy’s biggest seller of domestic appliances, with 105 outlets, Like any empire, Eataly has faced challeng- 3,000 employees and a turnover of €800m ing times. Recently, there was a controversy ($907m), Farinetti maintained his loyalty to Eataly Rome over the selection of the company to create wine. In 1989 he bought an estate called Can- two pavilions covering 4,000m2 and hosting tine del Castello di Santa Vittoria in Roero not 20 restaurants at Expo 2015 in Milan. The of- far from Barolo, the first of the collection of nine ficial explanation was that no other company wine businesses the Farinetti family and its had the same level of expertise and experi- Eataly business have now assembled. ence, but the lack of a tender process led to In 2003, Oscar Farinetti decided to sell his questions being asked by politicians, as well shares in Unieuro, and four years later, inspired as by Piero Sassone President of the Italian by his friend Carlo Petrini, a fellow Piedmon- Culinary Institute for Foreigners (ICIF). It has tese and one of the founding members of Slow been suggested that some of the attacks were Food, he decided to create a food ‘wonderland’ political in their nature and Farinetti has cer- or ‘happening’; an “explosion of Italy’s biodiver- tainly been controversial for his public sup- sity”. Open to all, like a high street food market, Eataly Chicago port of Italian premier Matteo Renzi. Accord- it would not only sell genuine, artisanal food ing to Angelo Gaja, his “outspoken” manner on products, but also include places where people don’t know the difference between the grains talk shows where he flamboyantly expresses could enjoy a meal of fish, cheese, vegetables or we produce in Italy nor the fact that we produce his belief that Italy’s financial woes could be meat. The philosophy of Eataly, as the venture more than 200 varieties of apples.” To address solved by doubling its tourism and agriculture was called, would be to “cook what we sell and this situation, Eataly organises interactive cook- sectors is almost bound to be divisive. sell what we cook”. ing classes for school children. A firm fan of Farinetti’s business, Gaja says Education is another of Eataly’s imperatives. Each Eataly is situated in what Oscar Farinetti “I admire his vision and courage, [he is] a true “Each product carries a story and a tradition. We calls ‘meaningful’ spaces and buildings such leader with determination and ability to risk, want the consumer to be aware of what he eats,” as the late 18th-century building in Turin that but also to analyse before acting. In business explains Francesco Farinetti, Oscar’s eldest son once housed Punt e Mes vermouth, the former he is tireless and convincing, a much sought who is responsible for managing and develop- Ambasciatori cinema in Bologna, and the de- after business associate, but one who has his ing the company in Italy. “Many consumers commissioned Ostiense air terminal in Rome. own ideas and steers the ship by his own rules. 40 COMPANY PROFILE EATALY “Oscar,” Gaja continues, “is a wonderful brings together a range of different forms of promoter, he knows how to create ‘expectation’ hospitality, ranging from bed & breakfasts to so that everyone visiting Eataly feels they are restaurants, congress centres and spas. at the centre of a show, yet at the same time With an annual turnover of nearly €57m, Eataly has great educational value and has the wine business exports to 80 countries, done a lot to assist Italian artisan products of- with the majority going to the US, Canada, 1/15 MEININGER’S WBI 1/15 MEININGER’S fering a proper growth of this industry.” Sweden, Norway, and Denmark, Japan and Exploiting a sophisticated franchising South Korea. Domestic sales, including distri- model, Eataly has set itself an ambitious bution through Eataly’s shops and restaurants programme for 2015 and 2016, including are also “very significant”, Bruno explains. In creating the highest restaurant in Europe, Eataly New York fact the wines are sold in all of Eataly’s over- at 3,400m on Mont Blanc, and an 80,000 m2 seas operations, apart from Dubai. “Our win- park in Bologna named ‘Eataly World’. The eries are not the only ones that supply wines franchise will expand in Italy in Forlì, Mode- to Eataly. We have an internal team trained na, Expo 2015 Milan, Trieste and Verona, and in wine merchandising that is responsible for overseas in São Paulo, Munich, Seoul, New the showcasing of the wines, the promotions, York, Los Angeles, Dubai, Moscow, London in-house tastings and the training of the ser- and Paris. Another area of expansion under vice and sales division.” consideration is the launch of an online fresh While each of the estates has its own story produce operation. The financial aim for 2015 to tell, the jewel in the crown is inevitably is to increase turnover by 50%. Fontanafredda. As Bruno explains: “For Os- According to Francesco Farinetti, Eataly’s car it was impossible not to buy it when the biggest headache is to gauge as precisely as Eataly Bari, Italy opportunity arose in 2008. The reason is possible the fine line between quantity and ‘historical’, because it belonged to the Italian quality – an issue that becomes more evident “We want our wineries to express the unique royal family – to King Emmanuel II of House with growth and expansion – while upholding character and passion of those who founded of Savoy, the first ruler of a united Italy.” the company’s aim to offer its shoppers the them, together with those who manage them Bruno continues that it was Emmanuel who best of Italy’s biodiversity. Both selling and today - and course to express the terroir and decided to convert Fontanafredda from a hunt- cooking food and using it for educational pur- appellation in which they are situated.” ing lodge into the largest contiguous estate in poses helps to reduce wastage, but in 2015, Apart from their collective ownership – Barolo, an area well known for its fragmented Eataly is aiming to bring the figure to zero by by Eataly or the Farinetti family – all of the plots and production. “Fontanafredda is an recycling and composting all of the company’s estates share the fact that they are members exception: it was too beautiful, too big, too garbage. of the ‘Vino Libero’ association created by historic to let it slip out of [Oscar’s] hands.” Farinetti to cover organically grown wines Farinetti’s readiness to include outsiders Italian wine with SO2 levels that are at least 40% below in his Vino Libero association is mirrored in the legal limit. As the association’s literature the book he published in 2013 called Storie di Wine has always been at the centre of Os- says, “The agriculture of Vino Libero breaks Coraggio (Stories of Courage) that describes car Farinetti’s life, and now he has decided to down the divisions between different culti- a dozen Italian winemakers such as Gaja, dedicate more time to globally promoting the vation methods and offers a new one, which Antinori, Incisa della Rocchetta, Lungarotti, international potential of Italian wine. After better meets the needs of producers and Allegrini, Planeta and Gravner. As the owner his 1989 acquisition of Castello di Santa Vitto- consumers”. The association currently has 13 of iconic wineries such as Fontanafredda and ria, which now produces 100,000 bottles, Fari- members, four of whom are independent of Borgogno, Farinetti has earned the right to netti bought the 500,000-bottle Monte Rossa the Farinetti family and Eataly. stand alongside these heroes. winery in Lombardy, the 200,000-bottle Le Farinetti’s passion for culinary education His recipe for success starts with making Vigne di Zamò in Friuli, and the 180,000-bot- extends to wine classes that are held within a profound analysis of the project.