From Italian sounding to 'Made by Italian': the new challenge for Italian companies

Friday 11 October, the CEO of Eccellenze d'Impresa, Luigi Consiglio, intervenes at the Bardolino International Geography Festival

What if «Italian sounding» was an opportunity for Italian companies? It may seem like a provocation, but often we don't look in depth at a real problem for Italian companies, which should be addressed differently than what happens now. Because consuming products that recall Italian culinary art, imagining eating a plate of pasta with a tomato sauce that evokes the Sicilian sun and a fresh basil leaf, perhaps topped with a shower of parmesan, is a dream that many in the world cultivate, but cannot afford. And so these sections of the population with a lower income, who cannot purchase truly "Made in Italy" products, turn to surrogates on the market at decidedly lower prices, imagining they are on a terrace in Positano enjoying one of the most typical Italian products. How can the Italian food industry exploit this desire? Maybe there is a way.Periodically, research is produced on the damage that imitations of Italian products generate to our agri-food industry. The latest in chronological order was presented by The European House Ambrosetti and 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: the impact is estimated at 63 billion euros for 2023, with Lombardy, Veneto and Emilia-Romagna losing around 10 billion each. According to the research, the value of Italian Food & Beverage exports would have more than doubled to 126 billion euros, added to the 62 billion of truly Made in Italy agri-food exports. These analyzes are often followed by calls for greater protection of Italian-produced products, but without going to the bottom of the problem and trying to rationally understand how these phenomena could be countered with market logic, which is much more effective than merely regulatory interventions. We also need clarity on what we want or need to defend: according to The European House, in first place among the most copied products is ragù, which however has French origins. Which Italian identity should we defend, in this case? Would it be like saying that anyone who prepares guacamole in Italy could be accused of "Mexican sounding"? Should we just import guacamole from Mexico? And what about hummus, or kebab? The (very serious) argument of the defense of uniqueness cannot be mixed with bizarre theories such as the defense of pizza or carbonara.On closer inspection, the success of a product abroad is not given by a more or less explicit comparison with Italian manufacturing, but by the quality of the product. I cite the case of the United States, 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 Made in Europe or Made in Italy products. As in the case of Lindt, which was forced to eliminate the wording "produced in Switzerland since 1845" from its brand because the company has a production plant in America or Barilla - also with a production plant in the USA - which as of this year, as a preventive measure, has eliminated the wording "Number 1 in Italy" to avoid possible disputes. Other large Italian manufacturers such as Fratelli Beretta, Citterio or subsidiaries of multinational companies, such as Galbani and Ferrero, do not mention references to Italy on their packaging, because it would be misleading for the American consumer and they would be subject to class action. But these brands are still successful in the USA, because they focus on the quality of their production processes and products and have carved out an important market share for themselves. It is in this field that Italian companies must be ready and invest in their future, because the real issue at stake is the defense of the agricultural and industrial uniqueness of Italians. Our country has ample room for maneuver, even within a global agri-food system which must aim to feed a constantly growing population which will reach 9 billion people in a few years. Italy must assert its unique traits known throughout the world, capable of giving life to unmistakable aromas and flavors that only the climate of our country can transmit to the fruits of the earth. The objective must be the creation of a recognizable brand on foreign markets, focusing on a reputation built over the years, on sales networks and efficient logistics, which can bring Made in Italy products to the world and, above all, to those countries in which increasingly larger segments of the population look at the consumption of quality products as a "status symbol", a way to stand out from the crowd. Among the luxury brands, there is also space for catering, with many Italian products that could reach the tables of young people (the most likely to spend) in Saudi Arabia or other countries that represent the new world economies. The same research by The European House – Ambrosetti reports that in China, Japan and Canada on average 7 out of 10 consumers look for real Italian products without considering aspects related to price. The percentages are also very high in countries such as Germany, Australia, Brazil, but also in France, the USA and the United Kingdom.But exporting the product alone is not enough. Italian companies must also have the courage to take their way of working abroad and create those products that the whole world envies us. A solution that could resolve, at least in part, the problem of the price difference between truly "Made in Italy" products and those that recall them in name and appearance. Let's think about «parmesan». It should be noted that Parmigiano Reggiano, Grana Padano and Pecorino Romano are sold in America (and several other countries) through quotas granted to some importers. In this way it reaches over 16 dollars per pound, even reaching 20 dollars in some periods. It would therefore be appropriate to study American antitrust and understand whether it is possible to intervene along a supply chain that multiplies the profits of some Italian producers in an unjustified way, reducing the saleability of the products and therefore the volumes. Parmesan has totally different costs, from 2 to 4 dollars per pound, with an obvious saving for the low-income population, who dreams of consuming a quality product even though they know that this is not the case. So, why not move the competence and ability of Italians closer to the places of consumption, reducing costs and opening up to new market segments? Some dairy producers from Parma, Mantua or Cremona could decide to go and produce in Wisconsin (where the milk is magnificent) and make a grana matured in the right way to go out on the market with an Italian-made product but which costs around 10 dollars a pound. It is a powerful opportunity for the Italian system to replace «Italian sounding» with «Made by Italian», with the quality and food safety that only Italians have in the world.