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CERTAIN PASTA from ) 731-TA-734-735 ITALY and TURKEY ) (Third Review)

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UNITED STATES INTERNATIONAL TRADE COMMISSION In the Matter of: ) Investigation Nos.: ) 701-TA-365-366 and CERTAIN PASTA FROM ) 731-TA-734-735 ITALY AND TURKEY ) (Third Review) Pages: 1 through 299 Place: Washington, D.C. Date: July 11, 2013 HERITAGE REPORTING CORPORATION Official Reporters 1220 L Street, N.W., Suite 600 Washington, D.C. 20005 (202) 628-4888 [email protected] 1 THE UNITED STATES INTERNATIONAL TRADE COMMISSION In the Matter of: ) Investigation Nos.: ) 701-TA-365-366 and CERTAIN PASTA FROM ) 731-TA-734-735 ITALY AND TURKEY ) (Third Review) Thursday, July 11, 2013 Main Hearing Room U.S. International Trade Commission 500 E Street, S.W. Washington, D.C. The hearing commenced, pursuant to notice, at 9:32 a.m., before the Commissioners of the United States International Trade Commission, the Honorable IRVING A. WILLIAMSON, Chairman, presiding. APPEARANCES: On behalf of the International Trade Commission: Commissioners: IRVING A. WILLIAMSON, CHAIRMAN DANIEL R. PEARSON, COMMISSIONER SHARA L. ARANOFF, COMMISSIONER DEAN A. PINKERT, COMMISSIONER MEREDITH M. BROADBENT, COMMISSIONER Staff: WILLIAM R. BISHOP, SUPERVISORY HEARINGS AND INFORMATION OFFICER SHARON BELLAMY, HEARINGS AND MEETINGS ASSISTANT KEYSHA MARTINEZ, INVESTIGATOR JOHN GIAMALVA, INTERNATIONAL TRADE ANALYST JOHN BENEDETTO, ECONOMIST DAVID BOYLAND, ACCOUNTANT/AUDITOR JOHN HENDERSON, ATTORNEY ELIZABETH HAINES, SUPERVISORY INVESTIGATOR Heritage Reporting Corporation (202) 628-4888 2 APPEARANCES: (Cont'd.) In Support of the Continuation of the Antidumping and Countervailing Duty Orders: On behalf of the Domestic Industry: ROBERT VERMYLEN, Vice President, A. Zerega's Sons, Inc. WALT GEORGE, Consultant, American Italian Pasta Company SCOTT MEKUS, Vice President of Finance, American Italian Pasta Company BRIAN FOX, Vice President of Category Management, American Italian Pasta Company JACK HASPER, Vice President of Sales and Marketing, Dakota Growers Pasta Company SHANE FAUCETT, Senior Vice President of Sales and Customer Development, New World Pasta Company GREGORY S. RICHARDSON, Senior Vice President and Chief Financial Officer, New World Pasta Company NEIL PETRUCELLI, Senior Director of Sales, Eastern U.S., New World Pasta Company JEFF BRYANT, Senior Director Customer Marketing, New World Pasta Company MICHAEL T. KERWIN, Director, Georgetown Economic Services GINA E. BECK, Economist, Georgetown Economic Services PAUL C. ROSENTHAL, Esquire KATHLEEN W. CANNON, Esquire DAVID C. SMITH, Esquire GRACE W. KIM, Esquire Kelley Drye & Warren LLP Washington, D.C. Heritage Reporting Corporation (202) 628-4888 3 APPEARANCES: (Cont'd.) In Opposition to the Continuation of the Antidumping and Countervailing Duty Orders: On behalf of Italian Respondents: RICCARDO FELICETTI, President of Pastificio Felicetti S.r.l., President of AIDEPI Pasta Manufacturers and Vice President of AIDEPI ANTHONY DIPIETRO, Vice President, George DeLallo Co. Inc. ANTONIO SCOCCA, International Sales Manager, Rummo S.p.A. DR. ENRICA MASSARELLI, Administrative Officer, Pastificio Garofalo S.p.A. DUSTIN AGLIETTI, National Accounts Manager, Rema Foods, Inc. MELISSA TENDICK, Marketing Associate Director, Pasta Americas, Barilla America, Inc. RICHARD P. FERRIN, Esquire WILLIAM SILVERMAN, Esquire DOUGLAS J. HEFFNER, Esquire Drinker Biddle & Reath LLP Washington, D.C. On behalf of Turkish Producers and Exporters: ABDÜLKADIR KÜLAHÇ9O–LU, General Manager, Durum Arbella, Turkish Pasta Producers Association MEHMET KARAKUS, General Manager, Selva Gida Sanayii A.Ô., Turkish Pasta Producers Association NIHAT UYSALLI, General Coordinator, Nuh'un Ankara Makarnas9 Sanayi ve Ticaret A.Ô., Turkish Pasta Producers Association BULENT HACIOGLU, Economic Consultant, Trade Resources Company MATTHEW M. NOLAN, Esquire DIANA DIMITRIUC-QUAIA, Esquire Arent Fox LLP Washington, D.C. Heritage Reporting Corporation (202) 628-4888 4 I N D E X PAGE OPENING STATEMENT OF PAUL C. ROSENTHAL, ESQUIRE, 8 KELLEY DRYE & WARREN LLP OPENING STATEMENT OF WILLIAM SILVERMAN, ESQUIRE, 12 DRINKER BIDDLE & REATH LLP TESTIMONY OF PAUL C. ROSENTHAL, ESQUIRE, 16 KELLEY DRYE & WARREN LLP TESTIMONY OF ROBERT VERMYLEN, VICE PRESIDENT, 16 A. ZEREGA'S SONS, INC. TESTIMONY OF JACK HASPER, VICE PRESIDENT OF SALES 22 AND MARKETING, DAKOTA GROWERS PASTA COMPANY TESTIMONY OF SHANE FAUCETT, SENIOR VICE PRESIDENT 28 OF SALES AND CUSTOMER DEVELOPMENT, NEW WORLD PASTA COMPANY TESTIMONY OF WALT GEORGE, CONSULTANT, AMERICAN 33 ITALIAN PASTA COMPANY TESTIMONY OF KATHLEEN W. CANNON, ESQUIRE, 39 KELLEY DRYE & WARREN LLP TESTIMONY OF GREGORY S. RICHARDSON, SENIOR VICE 60 PRESIDENT AND CHIEF FINANCIAL OFFICER, NEW WORLD PASTA COMPANY TESTIMONY OF GINA E. BECK, ECONOMIST, GEORGETOWN 71 ECONOMIC SERVICES TESTIMONY OF RICCARDO FELICETTI, PRESIDENT OF 159 PASTIFICIO FELICETTI S.R.L., PRESIDENT OF AIDEPI PASTA MANUFACTURERS AND VICE PRESIDENT OF AIDEPI TESTIMONY OF DR. ENRICA MASSARELLI, ADMINISTRATIVE 162 OFFICER, PASTIFICIO GAROFALO S.P.A. TESTIMONY OF ANTONIO SCOCCA, INTERNATIONAL SALES 166 MANAGER, RUMMO S.P.A. Heritage Reporting Corporation (202) 628-4888 5 I N D E X PAGE TESTIMONY OF DUSTIN AGLIETTI, NATIONAL ACCOUNTS 173 MANAGER, REMA FOODS, INC. TESTIMONY OF MELISSA TENDICK, MARKETING ASSOCIATE 177 DIRECTOR, PASTA AMERICAS, BARILLA AMERICA, INC. TESTIMONY OF MATTHEW M. NOLAN, ESQUIRE, 189 ARENT FOX LLP CLOSING STATEMENT OF PAUL C. ROSENTHAL, ESQUIRE, 285 KELLEY DRYE & WARREN LLP CLOSING STATEMENT OF WILLIAM SILVERMAN, ESQUIRE, 294 DRINKER BIDDLE & REATH LLP CLOSING STATEMENT OF MATTHEW NOLAN, ESQUIRE, 296 ARENT FOX LLP Heritage Reporting Corporation (202) 628-4888 6 1 P R O C E E D I N G S 2 (9:32 a.m.) 3 CHAIRMAN WILLIAMSON: Good morning. On 4 behalf of the U.S. International Trade Commission I 5 welcome you to this hearing on Investigation Nos. 6 701-TA-365-366 and 731-TA-734-735 (Third Review) 7 involving Certain Pasta From Italy and Turkey. 8 The purpose of these five-year review 9 investigations is to determine whether revocation of 10 the countervailing and antidumping duty orders on 11 certain pasta from Italy and Turkey will be likely to 12 lead to continuation or recurrence of material injury 13 within a reasonable foreseeable time. 14 Schedules setting forth the presentation of 15 this hearing, notices of investigation and transcript 16 order forms are available at the public distribution 17 table. All prepared testimony should be given to the 18 Secretary. Please do not place testimony on the 19 public distribution table. 20 All witnesses must be sworn in by the 21 Secretary before presenting testimony. I understand 22 that parties are aware of the time allocations. Any 23 questions regarding the time allocations should be 24 directed to the Secretary. 25 Speakers are reminded not to refer in their Heritage Reporting Corporation (202) 628-4888 7 1 remarks or answers to questions to business 2 proprietary information. Please speak clearly into 3 the microphone and state your name for the record for 4 the benefit of the court reporter. If you will be 5 submitting documents that contain information you wish 6 classified as business confidential, your requests 7 should comply with Commission Rule 201.6. 8 Before we begin, Commissioner Johanson has 9 asked me to let you know that while he's unable to 10 attend the hearing today, he will have the full 11 transcript of today's proceedings and access to the 12 record and will be reviewing it carefully. And 13 Commissioner Broadbent will be with us shortly. 14 Okay. Mr. Secretary, are there any 15 preliminary matters? 16 MR. BISHOP: Mr. Chairman, I would note that 17 all witnesses for today's hearing have been sworn. 18 (Witnesses sworn.) 19 MR. BISHOP: There are no other preliminary 20 matters. 21 CHAIRMAN WILLIAMSON: Okay. Let's begin. 22 MR. BISHOP: Opening remarks on behalf of 23 those in support of continuation of the orders will be 24 by Paul C. Rosenthal, Kelley Drye & Warren. 25 CHAIRMAN WILLIAMSON: Welcome, Mr. Heritage Reporting Corporation (202) 628-4888 8 1 Rosenthal. You may begin when you're ready. 2 MR. ROSENTHAL: Good morning. Thank you, 3 Mr. Chairman and members of the Commission. I'm Paul 4 Rosenthal of Kelley Drye & Warren representing the 5 domestic pasta industry in this case. 6 The domestic industry will focus its 7 testimony this morning on what has changed and what 8 has not changed, and of course we will focus on where 9 the Commission ought to be focusing, and that is what 10 will happen in the future if the antidumping and 11 countervailing duty orders are revoked. 12 Many of the essential facts that were 13 discussed during the previous review remain the same. 14 One thing that hasn't changed since the last review 15 or since time immemorial is that the recipe for pasta 16 is still semolina and water. I say this seriously to 17 highlight the various claims made by the Respondents 18 that their pasta was so different from U.S. pasta that 19 it did not compete with the U.S. industry. 20 In the original investigation in this 21 product and since, Italian representatives have argued 22 that their product is higher quality than U.S. 23 product. They have claimed variously that because 24 they use different dies, different water or different 25 production techniques that their products didn't Heritage Reporting Corporation (202) 628-4888 9 1 compete with the U.S. product. Or, having failed to 2 differentiate on physical characteristics, that their 3 product still tasted better. 4 The Turkish representatives made the 5 opposite claim. Their semolina and water combination 6 was inferior to the U.S. and Italian pasta and so did 7 not compete with the others. 8 As you know, objective taste comparisons, 9 market studies and other evidence submitted to the 10 Commission in the original investigation and 11 subsequently show that the American products compare 12 well with the Italian and Turkish competitors. That 13 is no surprise because the industries in these three 14 countries use equipment from the same manufacturers, 15 source wheat from the same sources and same areas and 16 use the same production techniques.
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    Fresh Pasta Machinery Process Lines and Technologies FRESH PASTA · 1 Fresh Pasta Processing Equipment A long-time combined experience in pasta Tailor made approach manufacturing allows GEA to be one of the leading Thanks to an integrated and highly specialized suppliers of fresh pasta production equipment, supply chain, joining tech-nology, flexibility and providing machines fresh pasta, frozen food and reliability all under the same name, GEA can give ready meals. Thanks to its team of engineers and its outstanding engineering services, all tailor-made technicians, GEA provides turnkey tailor-made to their clients’ re-quirements. All our technological solutions of complete fresh pasta lines. GEA’s solutions are characterized by extremely creative and machinery cover the entire process: from dough highly personalized projects. Today in fact, in the mixing to sheet preparation. food industry, excellence is not measured only by the product taste, but also and mainly by the company capability in creating innovation and fulfilling their customers’ continuous demand for new, more efficient and more profitable solutions. 2 · FRESH PASTA FRESH PASTA · 3 Fresh Pasta Processing Lines Filled Fresh Pasta Single Sheet Filled Fresh Pasta Double Sheet Gnocchi Tagliatelle and Lasagne Precooked Lasagna e Cannelloni 4 · FRESH PASTA FRESH PASTA · 5 Finished Products Lasagna Single sheet: tortellini,cappelletti, ravioli and special shapes Double Sheet: Squared and Multishape Tagliatelle Gnocchi Short-cut pasta 6 · FRESH PASTA FRESH PASTA · 7 The best technology for your products In GEA we take care of all process phases, aiming at transforming every machinery in an innovative technological solution that guarantees results in terms of quality, energetic impact and production capacity.
  • The Best Comes in Blue

    The Best Comes in Blue

    BARILLA CAMPAIGN THE BEST COMES IN BLUE Claire Casalaspi, Molly Greenwald, Liza McGraw, Anna Petke, and Hannah Plantz SECTION 1: Pre-Campaign Secondary Research Brand Name/Company Name: Barilla Pasta How long has the product existed: Barilla was founded by Pietro Barilla in 1877. It began as a small bakery on a small, vendor road in Par- ma, Italy. Barilla is known to be associated with the Italy’s finest food. Parma is home to the acclaimed Culatello cut of cured ham and Parmigiano cheese, also known as “parmesan” (Buckley, 2019). Where is your product sold (Limited or mass distribution): • Barilla is an international brand with mass distribution (Marketline, 2019). • Largest markets are Italy and the United States (Marketline, 2019). • Barilla began exporting spaghetti and fettuccine to America in 1996 and within three years the brand had overtaken Mueller’s to become the No. 1 pasta seller in America (Orr, 2002). • Barilla was the first pasta-maker to market their products across large retailers and food-service companies across America such as Wal-Mart and Costco (Orr, 2002). What is the cost of your product: • Barilla single 16 oz box: $1.28 (Walmart, 2019). • As I observed in many grocery stores, it depends on the retailer (McGraw, personal observation, 2019). Main competitors and their costs: • Ronzoni • Single 16 oz box: $1.06 (Walmart, 2019). • 9.4% U.S households buy and used this brand as a first choice (Conley, 2013). • They make $126 million in revenue (Buckley, 2019). • Closest competitor (Orr, 2013). • Store brands • Great Value single 16 oz box: $1.00 (Walmart, 2019).
  • Pasta Shape Catalog for Arcobaleno Aex18 Extruder Jemma

    Pasta Shape Catalog for Arcobaleno Aex18 Extruder Jemma

    PASTA SHAPE CATALOG FOR ARCOBALENO AEX18 EXTRUDER JEMMA 160 GREENFIELD ROAD | LANCASTER, PA 17601 ARCOBALENOLLC.COM | 717.394.1402 @ARCOBALENOPASTA EXTRUDED PASTA SHAPES FOR MODELS AEX18 JEMMA new = New Dies = Favorite Dies SPAGHETTI #5 1.1mm #6 1.3mm #7 1.5mm #8 1.7mm SPAGHETTI/ALLA CHITARRA/ #9 1.9mm TONARELLI #23 1.5mm #10 2.1mm #24 2mm #11 2.3mm #26 2.5mm #12 2.5mm #27 3mm TAGLIATELLE #31 2.5mm #32 3.5mm #33 4.5mm #34 6mm FETTUCCINE BIGOLI #35 8mm #13 3mm #14 3.5mm #36 10mm #15 4mm LINGUINE #21 3 x 1.6mm #21A 3.5 x 1.6mm #22 4 x 1.6mm TWO ARCOBALENOLLC.COM | 717.394.1402 EXTRUDED PASTA SHAPES FOR MODELS AEX18 JEMMA MM to INCHES Conversion Chart PAPPARDELLE #37 12mm #38 15mm Dime = Penny = 17mm (11/16”) 19mm (3/4”) #38/02 17 mm new #39 20mm Nickel = Quarter = 21mm (7/8”) 24mm (15/16”) MM Approx. Size in Inches 1mm 1/32” 2mm 1/26” #263 22mm #40 25mm (1 inch) 3mm 3/32” Sagnarelli (with ridges) 4mm 1/8” 5mm 3/6” 6mm slightly less than 1/4” MAFALDE 7mm slightly more than 1/4” 8mm 5/16” 9mm slightly less than 3/8” #51 12 mm new 10mm slightly more than 3/8” 11mm 7/16” 12mm slightly less than 1/2” 13mm slightly more than 1/2” #52 17 mm new 14mm 9/16” 15mm slightly less than 5/8” 16mm 5/8” 17mm slightly less than 11/16” 18mm slightly less than 3/4” new #54 10 mm 19mm slightly more than 3/4” 20mm slightly less than 13/16” 21mm slightly more than 13/16” 22mm slightly less than 7/8” #55 12 mm 23mm slightly more than 7/8” 24mm 15/16” 25mm about 1” 26mm about 1 1/32” #56 16 mm 27mm about 1 1/16” 28mm about 1 1/8” 29mm about 1 5/32” 30mm about 1