ENPARD SOUTH

GEOGRAPHICAL INDICATIONS INSTRUMENT FOR RURAL DEVELOPMENT

BALSAMIC VINEGAR OF MODENA CASE HISTORY ACETO BALSAMICO DI MODENA PGI

OUR HISTORY

The practice of cooking the must of grapes can be traced back to the ancient Romans: the so-called sapum was used both as a medicinal product and in the kitchen as a sweetener and condiment.

100 BC – AD 400

While travelling through the territory of the Po Plain, Henry III, Emperor of the Holy Roman Empire, asks for and is given a “very perfect vinegar” by Bonifacio, Marquis of Tuscany and father of the famous noble lady Matilde of Canossa

1046

1747

The word “balsamico” makes its first appearance in the registers of the cellars of the Dukes of Este

1933

The Italian Ministry acknowledges with an official act, the “age-long and characteristic industry of the Balsamic Vinegar in the Modena area”.

1965

The specifications of production are published in the Italian Gazzetta Ufficiale (Official Gazette).

Finally the European Commission adds Aceto Balsamico di Modena to the register of PGI (Protected Geographical Indication) productions.

2009

A simple product?

A kind of vinegar?

A generic dressing?

What do you think?

BALSAMIC VINEGAR OF MODENA: WHAT IS IT?

What do we have more?

AN IDENTITY

BALSAMIC VINEGAR OF MODENA: WHAT IS IT? (2)

GENERIC PRODUCTS

or

PRODUCTS WITH AN IDENTITY

WHICH DO YOU PREFER?

What does IDENTITY mean?

What does IDENTITY talk about?

BALSAMIC VINEGAR OF MODENA: WHAT IS IT? (3)

THESE PRODUCTS HAVE STRONG IDENTITIES: WHAT DO THEY TALK ABOUT?

PRIVATE BRANDS

•They tell the story of a single company

•They guarantee quality

•They ask the consumer to trust them

PRIVATE BRANDS (2)

• Individual and private approach

•Quality and innovation of products

•Huge economic capability to communicate

•Worldwide competition

• International protection

What we created through GI is another kind of IDENTITY link to cultural roots

GEOGRAPHICAL INDICATION

A CULTURAL IDENTITY

• Common land and terroire

• Common history

• Common traditions and culture

• Shared know how and savoire faire

• Link with the stories of families and companies

THE MARKET

The consumers FEEL the richness of meaning of GI identity because:

•We need to eat and to find meaning

•We need sustainable stories

•We need shared social value

The market of Balsamic Vinegar of Modena PGI

THE VALUE OF THESE «INTANGIBLES»

TOTAL PRODUCTION OF CERTIFIED ACETO BALSAMICO DI MODENA IGP

year litres var. 2013 86.701.448 \ 2014 97.536.596 11,11% 2015 93.268.441 -4,58% 2016 95.147.171 1,97% 2017 97.539.101 2,45%

* These values account for both the production of Balsamic Vinegar of Modena PGI sold “as is”, and the portion destined to compound products (dressings, creams, condiments ...)

€ 1 billion SALES TURNOVER

€ 400 million PRODUCTION TURNOVER

2017 TURNOVER OF ACETO BALSAMICO DI MODENA IGP

•Vinegar houses 84

•Bottlers 179

•Vineyard owners 4211

•Wineries 114

•Must producers 69

THE PRODUCTION CHAIN

THE ABM SCALE

• From local business to global one

• The production of Balsamic Vinegar of Modena is restricted to the sole Modena area

• 92% of product exported outside Italy

• 50% of product exported outside Europe

• ABM producers as interesting business for foreign investors

THROUGH GI SYSTEM

• We built a sector and not only a few companies’ system

• We created a rural and a commercial community

• We linked the business to a rural area

• We created a sustainable tool at social, economic and enviromental level

THROUGH GI SYSTEM (2)

• We created a collective IPR

• We saved and protected collective interest

• We promoted the awarness of history, tradition and culture of a region

• We created business possibilities

• We increased the value of raw materials and final products

THROUGH GI SYSTEM (3)

•We helped the regional rural development

•We increased the value of the agricultural sector

•We changed the public behavior of consumers

•We provided guarantees for consumers

•We gained their trust and engagement

WHY DID WE CHOOSE GI?

We believe that:

•Business should start to see itself differently

•Going from individual vision to community vision

• In order to be able to create a SHARED SOCIAL VALUE

SHARED SOCIAL VALUE

SOCIAL VALUE

+

ECONOMIC VALUE

SHARED SOCIAL VALUE (2)

A kind of business capable to solve, rather than create, social

problems

GI CREATES SHARED SOCIAL VALUE

Because GI is a shared system managed by rural community, institutional community,

business community together

A SHARED SYSTEM WHERE:

• IPR are shared

• Rules are shared

• The name and logo are shared

• The communication and enforcement are shared

• The cost and the value are shared

• The decisions are shared

A SHARED SYSTEM WHERE: (2)

The business of each single company remains PRIVATE and

INDIPENDENT

GI CREATES SHARED SOCIAL VALUE (1)

Because GI is a social system: his main goal is to protect and to increase the value of all public tools and collective interests

linked with the geographical area

GI CREATES SHARED SOCIAL VALUE (2)

• Strenghtens farmers’ work and agricoltural activities

• Increases the value of raw materials and agricoltural products

• Promotes more balanced B2B relationship between farmers and distribution chains

• Stimulates the consumer request for quality (non generic) products

• Promotes turism opportunities

GI CREATES SHARED SOCIAL VALUE (3)

• Increases the the Region’s economical potentialities

• Promotes more agricolture than industries

• Provides opportunity to work in their own land and Region

• Preserves the landscape

• Promotes ethic competition

• Provides business for individual and family companies

THE MAIN STAKEHOLDERS

•Producers and farmers’ organizations

•Interprofessional councils

•Public authorities (Government)

PUBLIC AND PRIVATE TOGETHER

• To manage and to protect public tools, interests and rights

• To promote common rules and procedures

• To create skills and competences

• To guarantee controls and certification system

• To gain international protection

BEHIND THESE LOGOS, CONSUMERS RECOGNIZE THE INTANGIBLES

AND THEY ARE READY TO PAY A PRICE FOR THEM

HOW WE DID IT

THE PROCESS TO REACH THIS GOAL FOLLOWED BY OUR

CONSORTIUM

THE PROCESS

•The product

•Geographical area

•History and tradition

•Group of producers/Consortium

THE PROCESS (2)

•Product specification

•Designation/name of the product

•Government/public authorities

•National law and procedures

THE PROCESS (3)

•Registration and protection

• IPR

•EU registration

• International protection

THE FUNDAMENTAL ROLE OF

THE CONSORTIUM

THE CONSORTIUM

CONSORZIO TUTELA ACETO BALSAMICO DI MODENA

BRIEF HISTORY

The first Consortium of producers associated with Balsamic Vinegar of Modena was founded in 1993, by just ten producers.

Its goal was that of being granted recognition to the product as Protected Geographical Indication - PGI: the registration application was submitted the following year.

«SELF CONTROL»

In 1998, the Consortium issued its first internal regulations.

In order to protect the denomination and the consumers, and to ensure better quality of the product, partners had to comply with specific procedures and production methods.

After years of unremitting efforts by the Consortium, in close collaboration with MIPAAF (Ministry of Agricultural, Food and Forestry Policies), the PGI certification for Aceto Balsamico di Modena was granted by the European authorities in July 2009.

PGI STATUS

STRONGER TOGETHER

The Consorzio Tutela Aceto Balsamico di Modena (Consortium for protection of Balsamic Vinegar of Modena) was reborn in its current form in December 2013, bringing together 50 Companies, so that their activities of protection and promotion of the product could have greater impact, both in Italy and abroad.

In 2014 the current Consortium was formally recognized by MIPAAF (Ministry of Agricultural, Food and Forestry Policies) as the only Consortium for protection of Balsamic Vinegar of Modena. Now the task of the agency is to carry out public functions of promotion, defense and protection of the product.

RECOGNITION

ACETO BALSAMICO DI MODENA PGI

BALSAMIC VINEGAR OF MODENA

ACETO BALSAMICO DI MODENA PGI INVECCHIATO

BALSAMIC VINEGAR OF MODENA AGED

Only the producers associated with the Consortium are allowed to display the Consortium logo on the label.

THE CONSORTIUM SEAL

NOW 1/2

The Consortium is the keeper of the product specifications and a key discussion partner in all questions concerning the product.

It is also its “voice”: it promotes knowledge about Balsamic Vinegar of Modena and enhances its culture.

Today the Consortium brings together 50 companies and represents 98% of the annual certified production of Aceto Balsamico di Modena PGI.

The Consortium operates on three distinct levels:

• it monitors the markets and defends Balsamic Vinegar of Modena against imitations;

• working alongside the Ministry, it studies and implements the regulation of all aspects of production and of quality controls;

• it promotes the product and its characteristics, taking part in trade fairs and events and communicating with the media.

NOW 2/2

MONITORING

Business monitoring, involving mainly correct labelling and presentation of the product, is carried out by the Consortium itself, by supervisors qualified as public security agents.

The relevant public security bodies collaborate with the Consortium: ICQRF – Institute of Quality Control and Fraud Repression, NAC – Carabinieri Anti-fraud Units, NAF – Agri-food and Forestry Unit.

inspections at large retail chains, grocery stores, exhibitions and producers – joint interventions with and reports to

ICQRF (Italian Ministry) – checks on the production of compound products with BVM – amendments to marketing messages at point of sale – amendments to web sites – approved labels for compound products with BVM

MONITORING 2016 – BY THE CONSORTIUM

audits – sampling of product ready to be certified as Balsamic Vinegar of Modena – sampling of cooked and/or concentrated grape must – non-compliances occurred during documental and on field audit, of which severe non-compliances – approved labels for Balsamic Vinegar of Modena

MONITORING 2016 – BY CSQA CERTIFICAZIONI

points of sale visited – survey – samples collected – Countries

involved: Austria, Belgium, France, Germany, Holland, Luxembourg, Spain, Switzerland, United Kingdom.

MONITORING 2016 – BY OTHER PARTNERS

The task of the Consortium is also to promote knowledge of Balsamic Vinegar of Modena and spread its culture. To this end, and in order to protect the product, the Consortium is part of national and international organizations such as AICIG – Italian Association of Geographical Indication and oriGIn – Organization for a International Geographical Indications Network.

PROMOTION

CERTIFICATION

For the verification of compliance with product specifications, the Consortium collaborates with an independent authorized control body.

The current body, commissioned directly by the Italian Ministry, is CSQA Certificazioni.

KEY FACTORS FOR SUCCESS OF GI SYSTEM

The geographical ORIGIN as a sign of a renewed

concept of «Quality»

• Link ORIGIN with quality made by natural and human factors

• Link origin with regional culture, history and traditions

• Link origin with the land’s beauty, hospitality and tourism

• Link origin with sustainability

EXTERNAL KEY FACTORS FOR SUCCESS OF GI SYSTEM

EXTERNAL KEY FACTORS FOR SUCCESS OF GI SYSTEM (2)

• Link origin with ethic and shared values

• Link origin with transparency (rules, methods, ingredients)

• Link origin with public guarantees

• Link origin with a safety system

• Link origin with public actors: associations and Government

EXTERNAL KEY FACTORS FOR SUCCESS OF GI SYSTEM (3)

Link origin with the idea of AUTHENTICITY

THE ROOT OF AUTHENTICITY

INTERNAL KEY FACTORS FOR SUCCESS OF GI SYSTEM

•Quality control and certification

•Common production rules

•Enforcement and protection

•Communication

NEW CONDITIONS OF SUCCESS

Connect the producer’s needs

and the consumer’s wishes

NEW CONDITIONS OF SUCCESS (2)

Producers:

to protect their activities and rights, to increase the value of raw materials and

final product

NEW CONDITIONS OF SUCCESS (3)

Consumers:

A new kind of quality made by tangible and intangible values - organoleptic,

ethical and social

NEW CONDITIONS OF SUCCESS (4)

The GI system and logo and the idea of authenticity is the way to connect the producer’s and consumer’s request

Thank you