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Agribusiness: the healthy supply chain to overcome the dichotomy between local and global

food marketing strategies studied at rome business school

Italian agri-food is a sector that stands out for the quality and excellence of its raw materials: we are the first European country in terms of the number of PDO (Protected Designation of Origin) PGI (Protected Geographical Indication) and TSG (Traditional Specialities Guaranteed) recognitions: 319 products have been identified as of 21 November 2022, according to data published by the Ministry of Agriculture and Food Sovereignty.

The agri-food heritage is one of Italy’s strengths and constitutes an important sector of the economy: it is, in fact, of considerable importance both in terms of turnover and in terms of the number of companies and jobs, and is typically characterised by the predominance, from a numerical point of view, of small and medium-sized enterprises.

Despite their size, Italian companies have been able to meet the challenge of internationalisation and the global market with brilliant results, which reverberate on ‘Made in Italy’ as a whole.

Quality, tradition and safety: three key words that represent the competitive scenario of the food sector. We wanted to discuss this issue with Michele Crippa, gastronome and lecturer of the International Master in Food and Beverage Management at the Rome Business School, who told us:

“When we talk about Italian food, we must, first of all, contextualise the concept of the Bel Paese brand. We are talking about market shares linked to a basket of typical products including, for example, Parmigiano Reggiano, Gorgonzola, Prosciutto di Parma, Extra Virgin Olive Oil, Balsamic Vinegar and among the final products Pesto and Prosecco.

It is also necessary to contextualise the choices of the large countries (United States, Canada, Brazil, China, Japan, Australia, the United Kingdom, Germany and France) that determine the fate of the market. For example, we Italians are among the biggest international players in terms of trade in peeled tomatoes, first and foremost with the Cirio and Mutti companies; the leading pasta producer and exporter with over 50% of the global market share; the leading wine producer in the world and the second largest exporter after France. In short, the ‘Made in Italy’ brand is synonymous with refinement and uniqueness, derived from tradition, experience and the quality of raw materials, linked to the guarantee of a product generated by inimitable environmental and production conditions.”

Media and New Food

The media world has always been interested in food and the number of TV programmes has grown exponentially, giving rise to numerous thematic formats and dramas. In 2019, according to Auditel data, there were 17 million, around 30% of Italians, who watched at least 2 hours of food-themed content every month and more than 70 TV programmes dedicated to food were produced, divided between thematic channels, such as the Gambero Rosso Channel and Food Network, which can be enjoyed live or on demand through platforms such as Sky, Dplay, Netflix, etc.

The media have a real positive influence on healthy food education and awareness. In the last two decades, with the advent of the great monographic television programmes, one of which is Masterchef, a great passion for cooking has been rekindled in domestic hotbeds, especially in the younger generations, who have shown a willingness to embark on a professionalising training path, guaranteed not only by the enogastronomic institutes – the old hotel-management institutes – but also by the higher training schools, the more recent ITS Academy for Made in Italy and a degree in Gastronomic Sciences. Today, even in the food and wine sector, training includes a managerial approach that creates a virtuous circuit for the entire sector.

Moreover, it is good to remember that already in the 1990s at the European level, even before the birth of the Union, the first legislations that would regulate PDO and PGI products were being discussed, and also what the influence of the media would be, because there was a strong desire to start communicating quality food and the importance of food safety. I like to emphasise what I repeat to my students: it is important to talk about good quality products and food and a healthy supply chain. In fact, to really understand the world of food you have to know the raw materials, the production processes, the actors in the sector and the supply chain.”

Italian Sounding

The protection of Italian food and wine products is a topic that has been discussed for several years now in doctrine, jurisprudence and governmental circles.

Protecting the Italian product means protecting it from the phenomenon of counterfeiting, known as Italian Sounding, which was created with the aim of spreading foreign goods on the market, using Italianate names that imitate, even grossly, the quality food product ‘Made in Italy’, compromising its image and taking away its market.

The total annual turnover of food fraud in 2020, as pointed out by Coldiretti President Ettore Prandini, was 24.5 billion euro.  The most imitated Italian products, again according to Coldiretti, are cheeses starting with Parmigiano Reggiano and Grana Padano, which become Brazilian Parmesao and Argentine Reggianito. Also on the shelves are imitations of Provolone, Gorgonzola, Pecorino Romano, Asiago and Fontina. Cold cuts are also counterfeited: from Parma to San Daniele, from Mortadella di Bologna to Salame Cacciatore and especially Extra Virgin Olive Oils. From this point of view, the role of the label, which tells the consumer the characteristics of the product he is dealing with, is particularly important. In this regard, with Law No. 12 of 11 February 2019 on simplifications, the new rules on the obligation to indicate precisely on the label the origin of all food products were approved.

“We are writing a new food safety concept after the Covid-19 pandemic. This is one of the most important aspects of the last few years: we must continue to invest in food safety and health, therefore, ensure healthy food produced in a safe manner.  I would like to remind you that Italy is among the countries in the world with the highest safety standards, where numerous hygiene and health controls are guaranteed primarily by producers and competent authorities. There are of course European Standards and our country has a very careful and preventive approach in their interpretation and formulation.

New Trends

Italian consumers pay particular attention to the shopping trolley. Much of the recent food fashions and trends (veganism, vegetarianism and not least climatarianism and reducetarianism, considered by most as the diets of the future) have as their main focus respect for animals, the environment and sustainability in general. In addition, the covid 19 pandemic and the outbreak of war in Ukraina, events that have led to a socio-economic shift among the population, are also forcing consumers to look at value for money.

“The impact of the war in Ukraina has had a major impact on consumption and what the new market trends may be, and I am not surprised that there is an increasing search for competitive prices. A key point is also accessibility: over the last few years, many producers have been induced to be more connected to new ways of direct delivery, a phenomenon also followed by supermarkets that have developed drive-through programmes with reservations also on Instagram. It is interesting to understand how these particular new dimensions of purchasing, which we previously imagined to be linked only to big cities, have also evolved locally. We no longer speak of ‘Kilometro Zero’ but of ‘Kilometro Buono’, because we must always direct the consumer towards quality products.  We must not forget that we are children and grandchildren of globalisation: when we want to taste new products, let us always make sure that they are good both from the point of view of the production chain and of the ethical aspect and cultural heritage with which they are enriched.”

Storytelling

With the advent of social networks, the Internet Food era began, the narration of food through the powerful tool of storytelling, capable of creating an emotional bond between companies and consumers.

But food storytelling can and must be used for a deeper involvement of consumers, one that is not only linked to the memorability of a meal at a restaurant, the subject of posts and stories on personal social networks, but to increase awareness of the quality of products, their traceability and their production processes.

“We need to convey new values related to food, new content also related to the sustainability of the product from the point of view of production and process. The tool of storytelling then becomes fundamental to satisfy that growing need on the part of consumers who really want to know the provenance of the products they choose. We live in a new dimension, fortunately, of transparency with regard to production, transport, packaging and tracking. These are extra values that consumers demand on a daily basis. Nestlé, for example, has declared that it will abandon plastic for the production of KitKats by 2030 and all packages will be converted to paper with packaging designed to be folded into origami. 100% recyclable and compostable packaging with a functionality aimed at conviviality, at a common moment with family and friends, after almost three years of isolation due to Covid-19. A powerful message that turns 360°: attention to the environment for greater purchasing awareness and a look at sociality.  Then there is the storytelling linked to new technologies, which helps create the customer experience. For example, in Tokyo, a restaurant allows patrons, as soon as they walk through the doors of the restaurant, to enjoy a specially packaged menu, with the correct balance of nutrients and nutritional principles, just by sharing their mobile phone data through blockchain systems. This makes me say that the future is already among us, with vigilance of course as to which personal data to share for security reasons.

New Professional Figures

“Today’s entire challenge is played out in that first dichotomy between global and local, of ‘big’ and ‘small’; hence between skills in a sector such as the agri-food industry, where there is also a need to ‘put your hands on the ground’ or ‘in the dough’ and to be able to speak to farmers as well as to managers of large companies.

The professional figures most in demand are those who are able to look inside the production sphere but who also know how to work in management, communication and marketing. Food and wine is an art, a science and a technique that looks at the world of food in its entirety. The skills that are most in demand are the flexibility to work in different positions, the ability to interface with multiple levels and the willingness to train professionally in order to strengthen the internationalisation process of small (but open to the world) Italian companies.”

MICHELE CRIPPA

Michele Crippa is a lecturer in history and culture of cuisine, gastronomic sciences and food technology, specialising in communication and marketing of the Italian food heritage. He is a technical-economic consultant for the culinary, gastronomy and events industry as Lead Auditor on ISO quality management systems and certified legal officer for food safety control. He trained in Gastronomic Sciences at the University of Pollenzo and then attended the Food Quality Management and Communication course at the University of Pisa. He obtained his master’s degree in Italian Food and Wine at the University of Padua. He has worked as a manager in the hotel and restaurant services sector and collaborated as a lecturer at the most important culinary training centres such as Alma, Gambero Rosso and Scuola Tessieri. He is a director of Gastronomik, an agency specialising in gastronomic networking and consultancy services for the food industry, and founder and sensory trainer of Neurochimica, a medical practice specialising in taste and smell disorders. He gained experience in the television field by collaborating with DRY Media and Endemol Shine Group in the development of the formats “Street Food Battle” and “Masterchef”. To date he is the Didactic Director of the “Food&Wine Management” course at ITS Jobsfactory, Lecturer at the University of Gastronomic Sciences, Rome Business School, Pitzer College Institute and Professor of Food Science and Culture at FACEC Colleges and IKAROS Foundation.