Agroindustry, because fake Made in Italy is an opportunity*

Luigi Consiglio (CEO Eccellenze d'Impresa): it is necessary to act strategically on the market, focusing on product quality and internationalization plans

By Luigi Consiglio – CEO of Eccellenze d'Impresa*Comment published on the Il Sole 24 Ore website on 25 June 2024

Periodically, research is produced on the damage that imitations of Italian products generate to our agri-food industry. The latest, in chronological order, is a research presented by The European House Ambrosetti which describes the losses suffered by our companies from the sale of foreign products that recall an Italian origin in the name, or in the communication of the brand. These are regularly followed by debates on the reasons for these "attacks" on Made in Italy and consequent calls for greater protection of Italian-produced products.

All this without however going to the bottom of the problem and therefore trying to rationally understand how these phenomena could be countered with market logic, which by their nature is much more effective than merely regulatory interventions.I would like to make the Italian agro-industrial world reflect on how this topic - if not correctly addressed - can slip into useless readings to generate true value for agriculture and our food industry.

More quality and internationalization plans, less regulatory interventions

In fact, I believe that Italian companies - rather than aiming to obtain advantages from regulatory interventions - must act strategically on the market, focusing on product quality and effective internationalization plans.I start from a first consideration: on closer inspection, the success of a product abroad is not given by a more or less explicit comparison with Italian manufacturing, but is given by the quality of the product. I cite the case of the United States, by far the market where Italian exports have the highest added value: many Italian companies already produce on American soil. This means that American law no longer allows companies to talk about products Made in Europe/Italy. As in the case of Lindt, which was forced to eliminate the words "produced in Switzerland since 1845" from its brand because the company has a production plant in America. Or Barilla - which also has a production plant in the USA - which as of this year, as a precaution, has eliminated the wording "Number 1 in Italy" to avoid incurring possible disputes.

The risks of class actions in the United States

American courts prohibit, in fact, any reference to origins that are not consistent with the real place of production. And the fear of possible class actions requires serious companies not to confuse American consumers. Other large Italian manufacturers such as Fratelli Beretta, Citterio USA, or subsidiaries of multinationals such as Galbani and Ferrero, do not mention references to Italy anywhere in their packaging. Because it would be misleading to the American consumer and because they would be subject to class actions. But the success of these brands in the USA demonstrates that the important point is to offer American consumers quality due to production processes, manufacturing techniques and unique raw materials. Which to be recognized and appreciated does not need to pretend to be made in Italy.

CREDITS: italianfood.net

The debate on Made in Italy to be defended

There is then the need to clarify which Italian products are to be defended, so as not to generate unnecessary confusion and divert attention from the real issue at stake which is the defense of the agricultural and industrial uniqueness of Italians.The list of "copied" products, described for example in the last research cited, sees ragù in first place, a cuisine preparation of French origin, followed by pesto which is a recipe sauce based on basil. Both fresh and with a few days of useful life before expiry. In these cases it is even difficult to understand what the defense of Italianness means. It would be like saying that anyone in Italy who prepares guacamole could be accused ofmexican sounding? Should we just import guacamole from Mexico? And the hummus? And the kebab? The serious argument of the defense of uniqueness cannot be mixed with bizarre theories such as the defense of pizza or carbonara.

What happens along the distribution chain

Where the topic becomes more ambiguous is on denominations such asparmesan. Here it should be noted that Parmigiano Reggiano, as well as Grana Padano and Pecorino Romano, is sold in America, and in several other countries, through quotas granted to some importers. In this way it reaches over 16 dollars per pound and even reaches 20 dollars at some times. It would therefore be appropriate to study American antitrust and understand whether it is not possible to intervene on those actors who along the distribution chain multiply their earnings with worthless position rents, reducing the saleability of the products and therefore the volumes.

Italian sounding goodbye, welcome made by Italian

It could also happen that some dairy producer from Parma, Mantua or Cremona decides to go and install a production in Wisconsin, where the milk is magnificent, and produce a grana matured in the right way to go on the market with an Italian-made product but which costs around 10 dollars per pound. Move thecompetence and the ability to act like Italianscloser to the places of consumption is a powerful opportunity that only the Italian system has. The strategic objective would be to replace theItalian soundingwith amade by Italian, with the quality and food safety that only Italians have in the world.