Canada: Love and Monopoly, Part 2

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continued from the previous article:
"Canada: Love and Monopoly – 1/2"

Popularity of Italian Wine: The Key Factors.

"The popularity of Italian wines has grown significantly over the last 5-8 years – says Gurvinder – Amarone, Barolo, Brunello, SuperTuscan and Chianti have been known for years but in the last five years interest has matured and diversified, moving towards the rarest and native varieties.. The growth of the “Italian wine” category has been much more intense than that of other” reveals the expert.

There are several factors that influence this growing popularity.
The first in chronological order were immigration and catering which here as in the US or Germany gave a strong boost to the consumption of Italian wines.
"Besides immigration, the other important factor is the price” explains Wilton.
"Canada has a significant immigrant presence (especially from the South), which helps to push sales of lesser-known wines while competitive pricing at the bottom of the scale and growing consideration for the pinnacle of quality offerings support the largest share of sales and volumes.".
Which is allowing the ITAL-CAL duo (Italy and US, specifically California) to be strengthened to the detriment of France.

Another factor that has an impact, as Wilton points out, is the great variety of grapes that Italy has:
"As consumers seek to delve deeper into the world of wine, they are moving beyond French internationals". Obviously a distinction must be made between professionals and the common consumer: just think that "here in Canada most people learned about Chianti in the film "The Silence of the Lambs" Wilton says.

But there are also more recent factors, such as wine tourism which, in addition to having an immediate beneficial effect on the destination with consumption on site, also has a delayed one, whereby, once they return home, tourists look for what pleasantly impressed them during the trip.
The data on wine tourism are impressive: research by the World Food Travel Association shows that in 2016, 93% of travellers could be considered food travellers, that is, tourists who in the last 12 months participated in food and wine tasting events other than meals”.
The trend of wine tourism is also growing in Italy, which however remains far from an organic program like the one set up in France (read our previous posts:
wine-tourism e wine tourism).

"In Canada, culinary tourism is on the rise. Italy is seen as a cultural and culinary destination and as a result, people are more attracted to things Italian, including wine.” testifies Gurvinder Bhatia. “Moreover, today more and more people want to understand where the food they eat comes from and this also concerns the wine they drink – the sense of belonging is important as is having a genuine story, which allows the consumer to feel connected to the producer” explains Bhatia.

Growth prospects
According to Wilton, the greatest growth opportunities for Italian wine in Canada involve expanding the number of available producers within provincial monopolies where the regions are already well represented and then, secondarily, strengthening indigenous varieties from those and other regions.

"For example, there are a few companies that dominate Veneto wine in Ontario. – exemplifies Wilton – so expanding the supply of producers from that region would mean increasing knowledge and increasing sales. Provincial monopolies are the biggest obstacle but companies can expand their presence in the market by working directly with importers, as many are already doing".
While it is true that regional monopolies such as LCBO will always be the biggest obstacle, Italy is not standing by and watching: “Piero Titone of the ICE Trade Commission is one of the most active ambassadors in Ontario and is doing a superb job” Wilton testifies. “However, annual fairs tend to be too big and I find that the presentations of the various regional consortia are ultimately more effective as they are more focused.". "The best strategy for Italian wines in my opinion – continues Wilton – It is twofold: on the one hand, working with monopolies as much as possible, on the other, working around them, working directly with consumers, with the help of Canadian professionals, and region by region with consortia."

As regards the strengthening of native varieties,
Wilton exemplifies with Sicily: “Wines from Sicily are a growing category but dominated by Nero d'Avola. Focusing on Grillo, Nerello Mascalese and other native varieties would help further strengthen sales in the region".

Among the regions that are growing, in addition to Sicily, there are Marche, Emilia Romagna (driven by Lambrusco), Campania, Puglia and, in general, the regions that the consumer has visited during his travels.
However, the growth of the Italian presence requires adequate communication.

Communication strategies
For Bhatia, it is absolutely essential that Italian producers learn to share their stories, that they are proud of their identity – and here the words of Jancis Robinson at Wine to Wine 2016 come to mind – and highlight the factors that make their wines unique.
To underline the need to know how to tell your story is also Arlene Oliveros, among the women of reference for wine communication in Canada, who underlines the crucial nature of the culinary vehicle.

The importance of communicative usability also concerns the websites, which must be available in the English version, captivating and effective with relevant information on the producer, the varieties, the technical sheets and useful advice for the visitor; “all things that help demystify wine, making it accessible” Bhatia emphasizes.

"It is also necessary for producers to ensure that their importers know their reality well and that they themselves dedicate time to being present on site promoting tourism to Italy. The aim is for the consumer to come to ask for a certain wine and at that point the monopoly is forced to give in.” Bhatia emphasizes.

Knowledge of the variety must also be improved, Michael Godel emphasizes: “it is essential that the consumer has an idea of ​​what variety he is drinking; or, in the case of regions such as Chianti Classico or Aglianico del Vulture, it is necessary that that territory be distinguished by its quality compared to other regions that produce wine from the same variety. The consumer must be educated to the fact that Chianti Classico equals Sangiovese equals quality".

There are already numerous strategies that Italian wineries are using in the Canadian market: training professionals who will then disseminate what they have learned, visits to producers during fairs, dinners with agents and communicators.
But something else can still be done: “An interesting strategy I've seen has had great success – suggests Wilton – is the partnership with Canadian professionals to directly educate restaurant staff. The CIVB is doing this right now with Michael Godel".
An additional opportunity that could help Italy to enter in an increasingly incisive manner into a market of crucial importance in the near future.

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