The Branding of Trentino of Branding the

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The Branding of Trentino of Branding the REGIONAL ANALYSIS TRENTINO THE BRANDING OF TRENTINO 5/11 MEININGER’S WBI Cooperatives have always loomed large in the viticultural landscape of Trentino, providing economic stability to farmers. But now, finds Michèle Shah, Trentino is having to reinvent itself, and it’s the independent wineries that are leading the way. taly’s northeastern region of Trentino, smaller producers in Trentino, while uphold- ity by creating a commission that oversees wedged between Alto Adige and Friuli ing the tradition of cooperative farming, still issues of pricing which prohibits the coopera- I Venezia Giulia, is currently in the proc- an important economic resource within the tives from pricing other producers out of the ess of reviewing its viticultural sector by im- territory. Cavit currently represents 4,500 market.” plementing a series of new strategies with winegrowers and associate members working Endrici would like to implement a number the aim of creating a clearer ‘branding’. for 11 affiliated cooperatives, which together of changes, from a greater focus on Trentino’s This means a shake-up of the cooperative form the source of Cavit’s 6m bottle produc- corporate identity – or ‘Brand Trentino – as structure on which the region was founded. tion from 5,700ha of vineyards, equal to 65% of well as a clearer distinction between indus- To put the region’s current issues into Trentino’s total wine production. trial and premium production. He says there perspective, it’s important to understand Over the past 50 years, Trentino’s coopera- should be more interaction with the press, Trentino’s past as a fragmented farming tive ‘cult’ has enabled production to diversify greater marketing support for smaller winer- culture which, over the last century, gave within the sector. Though cooperatives like ies and more focus on exports by participating rise to one of the most evolved and struc- Cavit and Mezzacorona focus mainly on in- in international wine fairs and in approaching tured cooperative systems not only in Italy, dustrial production, they also produce a range emerging markets for Trentino wines, such as but worldwide. Cooperative farming in Tren- of premium quality labels distributed in Italy Asia and Eastern Europe, while reinforcing tino, as far back as the Hapsburg Empire, has and exported world-wide. There are also co- their relationship with the Scandinavia mar- played a fundamental role in all agricultural operatives, such as La Vis, which farms some kets and central European markets. sectors, including apple and dairy farming. of the region’s top vineyards, which are more Many would agree that, over the past 40 It’s the very economic stability provided by the focused on developing Trentino’s viticultural years, Trentino’s viticultural sector has been cooperatives that has allowed farmers to identity by producing wines from its indig- guilty of sitting back on its haunches, thanks break out of the cooperative structure and enous varieties. to the public funding that’s been ploughed establish their own wineries – but it’s also “Cooperative farming has been essential into its regional and provincial coffers. these wineries that will play an important to Trentino’s farming economy and sustain- “Our association of small private winer- role in Trentino’s future. ability,” explains Fausto Peratoner, CEO of La ies ‘vignaioli’ were clearly at a disadvantage Vis. “Today, while there is not such a preva- some 25 years ago,” explains Endrici. “While Fragmentation lent farming community as there was in the the large cooperatives were receiving up to Competition in the wine industry is rife. In 1960s, the structure allowed owners of small 40% of funding for development and research Trentino, the situation is exacerbated by ex- parcels of vineyard to continue to farm their projects, as well as partial fiscal exemption, treme fragmentation: the majority of farmers grapes, while at the same time pursuing other private estates were, if lucky, given a 10% (48%) own a mere 0.5ha of vineyard, with only work opportunities.” contribution to cover investment in setting up 0.8% of farmers owning more than 10ha. For Paolo Endrici agrees. The president of the their own estates.” He adds that the distribu- this reason, most wine in Trentino was sold Aziende Vitivinicole del Trentino (Trentino’s tion of funding now appears more balanced, as locally in bulk, up until the 1950s. association of estate producers) and owner the public sector no longer gives major contri- Cavit, Trentino’s giant cooperative, was of the Endrizzi estate, one of Trentino’s most butions solely to the larger players. one of the first to be established, in 1950. By prominent historic medium-sized estates, he Other signs of change and a growing dyna- 1965 Trentino had established 14 coopera- says the benefits of cooperatives should not mism are becoming apparent. In 2010, Tren- tives producing 90% of the region’s wine. In be denied. “Cooperation has been very posi- tino’s urgent need to restructure resulted in a that respect, things have not changed signifi- tive and has done a great deal to develop the special committee headed by a commissioner, cantly. Today there are three main cooperative region; however, over the years things change Marco Zanoni, secretary to Trentino’s Cham- players: Cavit, with 11 affiliated cooperatives and we now need to meet the requirements ber of Commerce. The committee includes under their holding; Mezzacorona, with one of the smaller producers by assisting them to members of the region’s trade sector, as well affiliated cooperative; and La Vis, affiliated grow and develop according to the needs of as a number of external consultants. The aim with the Cembra cooperative. Together they the global market.” He says that there is too is put Trentino’s wine production back on its produce 85% of the region’s wine production. much fragmentation in pricing between the feet and create more equality throughout the These larger cooperatives have, over the cooperative and private sector, from high to sector, plus create more opportunities for both past years, been accused of overshadowing low pricing. “There needs to be more unanim- large and small wineries and, above all, to 24 TRENTINO VALDOBBIADENE DOCG PROSECCO SUPERIORE “ Cooperative farming has been essential to Trentino’s’ farming economy and sustainability. The structure allowed owners of small FAMILY parcels of vineyard to continue to farm their grapes, while at the MOTIVES same time pursuing other work opportunities.” Signs of faces and of hills. The dream of a man, the determination of Fausto Peratoner, CEO, La Vis. women. The story of a family which has every assist in restructuring the administration of motive for feeling proud of their role in the some of the key cooperatives whose balance guarantee of this wine. sheets are in deficit. The most seriously hit by the recent eco- nomic crisis, and by ‘over-optimistic’ invest- ments, has been La Vis, one of the region’s most quality-orientated cooperatives. La Vis’s investments include the acquisition of a number of wineries, such as the Cembra coop- erative, Casa Girelli, Maso Franch and most re- cently the Tuscan estate Villa Caffaggio. The GOLD MEDAL special commission headed by Zanoni has set Vinitaly 2010 up a new management under the direction of Valdobbiadene DOCG its present CEO Fausto Peratoner, and the re- Prosecco Superiore structuring may also involve the sale of some Spumante Dry “Maior” 2009 of La Vis’s holding assets – its wine estates. “The situation is very complex,” admits We will attend VINEXPO Peratoner. “It is not merely a matter of a in Bordeaux: PAD. 2 STAND LM15 hypothetical mismanagement of funds. Three years ago we hit an unforeseeable economic world crisis and certain investments that were planned and implemented created a deficit, because the market and sales plummeted.” The special committee declares it has al- ready identified a number of key issues that it will address which will affect the entire sector. www.bortolomiol.com REGIONAL ANALYSIS TRENTINO These include some major moves such as ‘re- area, a valley bordered by the river Adige, and Delle Venezie that sell and export in volume leasing’ or even possibly selling five or six of characterized by an alpine climate, is home to at lower prices. Cavit’s affiliated cooperatives which are better a range of white varieties, in particular Müller Trentodoc placed in quality production. This would mean Thurgau and Traminer and the red variety 5/11 MEININGER’S WBI they could branch off on their own. The aim Schiava. Trentodoc, formally established as a DOC would be to lower ‘industrial’ production, while Trentino is very important for the produc- in 1993, can be traced back historically some increasing premium production, which has a tion of quality Chardonnay, which totals 25% 110 years to the production of Giulio Ferrari’s clearer regional identity. Awareness that Tren- of Italy’s production. The two key producers of sparkling wine. Trentodoc is by most local tino needs to be more visible in the interna- Chardonnay are Ferrari, followed closely by La authorities considered Trentino’s flagship of tional arena involves strategies such as market Vis. In 2010, Trentino’s production of Char- quality production, totaling some 8.5m bot- research and increased exports, both essential donnay equals 3000ha of vineyard, of which tles spread over 70 labels and 34 producers. to the development of the region. In addition 800ha are dedicated entirely to the production Ferrari, with a turnover of €56.5m and an 8% the committee would like to see both sectors of Trentodoc, the sparkling wine designation. increase on 2009 production, is by far the of production, from small to large producers, “Trentino has potential in quality production largest and most historic producer of Trento- involved in determining the region’s future.
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