PL Magazine November 2022

HAI MAI VIAGGIATO CON IL PALATO?

Con Piaceri Italiani puoi farlo ogni giorno, senza muoverti da tavola.

Una grande selezione. Una grande attenzione ad ogni passaggio della filiera. Un grande rispetto delle tradizioni culinarie più autentiche. Un grande impegno per offrirti sempre il meglio. Dalla pasta alla mozzarella di bufala DOP, dalla marmellata al caffè, dalla salsa di pomodoro ai biscotti fatti come una volta, oggi puoi ritrovare il piacere di scoprire tutte le prelibatezze del Bel Paese stando seduto a tavola.

LA TRADIZIONE HA SEMPRE RAGIONE.

Phone 02/20480344

office: commerciale@edizionidm.it Tel: 02/20480344 There is no guarantee that we will publish the original versions or any part of submissions (texts, articles, news, images, data, charts, research, etc.) sent by authors outside the Editorial Board. Submissions may, however, be published in a revised form for editorial reasons. It should also be noted that sending a submission constitutes an automatic authorisation by Edizioni DM Srl to publish it free of charge in all its publications.

Contributing Authors Federica Bartoli, Stefania Colasuono, Maria Teresa Giannini, Fabio Massi, Fabrizio Pavone, Luca Salomone

Learning and confrontation: know how to promote and share

It is not easy to change habits and lifestyle. It is important to share experiences and value the attachment of the territory. This can become a limit of the global vision in store.

The national and international outline sug gests that customers are increasingly chasing quality on both products and customer service. They are looking for competences, knowledge, and empathy

Finally, it is important to offer a wide range of products. There are new “consumer commu nities” like vegans or vegetarians that might require a variety of choices. This is in order to satisfy every dietary requirement

Coralis’ answer is a wider training and busi ness development plan for all its associates and partners. Where everyone will actively participate under the leadership and guid ance of Giorgio Di Tullio.

Thanks to the first “Trasforma” series of meet ings, we can now count on professionals known as “Product Scouts”. They have deep knowledge in their territory of the local, high-quality producers that stand out for their sustainability.

The companies that have been proposed at the end of the meetings are very differ ent from each other but with common heart: territoriality, transparency of the production chain, and they don’t need the pricing logic.

The idea of “product scouting” it’s born at the end of several meetings with Professor Giorgio di Tullio with the associated as absolute stars of the meetings. Each of them has created an ideal amount of product related to the eno-gastronomic culture of their territory to keep in their stores. A heritage to share that will offer a strong identity to the Coralis’ store.

www.consorziocoralis.it

Local cuisines: a growing opportunity for PLs

Maria Teresa Manuelli Editorial director

According to Innova Market Insights, globally, almost half of consumers have affirmed to in creasingly look for food specialties of other countries, with the Mediterranean and the Asian cuisines are at the top of the list of their favorites. One out of 5 consumers has stated to be “very interested” in South-American tastes and 1 out of 10 has declared the same for African tastes. How can we interpret these trends? Going beyond the limits of national borders, Italian local flavors and traditional recipes have great potential. In fact, it is nice to see that within the great segmentation of Mediterranean tastes, the most globally appreciated taste is the ‘Italian’ one, while the more generic ‘Mediterranean’ is in the top-three, followed by the ‘Spanish’ and the ‘Greek’ flavor. Proof of this success is that some US chains have just added to their sausages supplies the ‘Italian’ option. And, according to the survey, the simple ‘Italian’ or ‘Mediterranean’ indication on the packaging is enough to add value to the product. Other cuisines were also able to cross their national borders and are rapidly spreading, such as the Asian, Middle-East and African cuisines, even though penetration varies from country to country. For example, Waitrose, the British grocery chain, launched the food line, ‘The Levantine Table’ in 2021, in spired by the Levant Region of Middle-East, which includes Israeli, Jordanian, Libanese, Pales tinian, Syrian, Turkish and Cypriot cuisines. With more than 100 references, this is an important supply that shows the distributor’s great trust in the potential of these international foods. Obvi ously, there are many factors involved in generating demand for global flavors: travels - tourism and migration - but also media coverage (social media included) and catering trends. In par ticular, the growth of street foods in some parts of the world is widening consumers’ horizons and creating trends that are replicated at home - and brought on the shelves of distribution even before. On the other hand, some international preferences are growing based on healthy beliefs, i.e. fermented foods - kombucha, kimchi, miso etc. So, numerous factors boost, and will continue to boost the constant demand for international ‘concepts’ in the future. However, when it comes to tastes, it seems that the world has become a smaller and smaller place and at the same time a great opportunity for Italian companies and supply chains, as we learnt in the cover story of this number.

PLM honors the innovation and sustainability of PLs

The twelfth edition of the EDM Awards was held on Friday November 18th at Deloitte Italia's Green House in Milan. These are accolades that the publishing house Edizioni DM grants each year, through its publications, to retail stores and brand in dustries. The awards associated with our magazine were given for innovation in private label products (product, packaging, process). Presenting the awards were edito rial director Maria Teresa Manuelli and Antonella Maiet ta, exhibition manager of Marca.

DRIED FOOD CATEGORY

✪ Winner: Aldi

✪ Product: African Cashew – salted roasted cashews

✪ Area of innovation: product and process

✪ Description: BIO and FAIRTRADE-certified African cashew nuts grown and processed directly in Benin, Africa, with the country of production itself adding value to the product

✪ Rationale: largely sustainable (organically and socially, for production and processing at the source), original and attractive packaging

FRESH FOOD CATEGORY

✪

Winner: Iper La grande i

✪ Product: Mare Vivo fresh frozen fish

✪ Area of innovation: packaging

✪ Description: packaging can be disposed of with paper. A groundbreaking innovation for the sector that reinforces the brand's focus on the consumer. The new sustainable packaging features the "smaltibile nella carta” (can be disposed of with paper) sticker

✪ Rationale: substantial innovation. Developing the use paper for the packaging of frozen food even with private label products

DRINKS CATEGORY

✪

Winner: DM Drogerie Markt

✪ Product: concentrated oat drink

✪ Area of innovation: packaging, product, and process ✪ Description: with only 500 ml of the concentrated oat drink, it is possible to obtain 1.5L of oat drink. The concen trated packaging allows for cuts in transportation costs. The product is part of DM’s Pro Climate line; items with zero environmental impact (compensation for: CO2 emissions, eutrophication, acidification, photochemical smog, ozone loss) ✪ Rationale: an organic product with a simple and effective idea not only for climate impact in general, but it is also light er and takes up less space

COSMETICS CATEGORY

✪

Winner: Lidl ✪ Product: Love Your Planet sun care line ✪ Area of innovation: packaging and product ✪ Description: plant-based and free of any chemicals harmful to biodiversity and coral reefs, this range of sun screens is designed to protect both the skin and the sea ✪ Rationale: ocean impact, formula, packaging material and outstanding communication

HOUSEHOLD

CLEANING CATEGORY

Winner: Crai ✪ Product: Spray for fragile surfaces ✪ Area of innovation: product and packaging ✪ Description: product specifically manufactured for modern induction hobs in a packaging consisting of 100% recycled plastic ✪ Rationale: valued for its support of environmental sustainability for its use of recycled plastic

✪

NON-FOOD CATEGORY

✪

Winner: C3 ✪ Product: Eco Line single-use products ✪ Area of Innovation: product and packaging ✪ Description: 13 biodegradable and compostable products, a new Eco Noi&Voi line of cellulose pulp, Mater-Bi and PLA and Paper ✪ Rationale: product and packaging sustainability. A line of disposable products that are 100% biodegrada ble and compostable, with high environmental care

Private label: local is cool (and also strategic)

In Italy, more than half of the people prefer local products (55%). This is what emerges from multiple indicators of the NielsenIQ re port published in September 2022. According to this report, 46% of consumers claim they would buy such products even though they are not always easy to find on the shelves and are on average more expensive. According to Osservatorio Immagino, local products, and in particular traditional regional products, are more and more sought after (+3.2% in 2020), compared to the demand for ‘100% Ital ian’ products, which is instead substantially stable. After all, 11% of references show their specific production area on the label. Speaking of absolute numbers, in Italy, products with a controlled, protected designation of origin or geographical indication generate 16.6 billion euros in value (out of a European total of 74.7 billion).

The "hows" and "whys" of brands that enhance local producers

u There’s a law, but…

After more than two and a half years of hesitation for only 14 articles, in late March Law 30/2022 on the "en hancement of small local producers," proposed by Senator Gianpaolo Val lardi (League), passed. However, it’s just a new description to be placed on packs, and not a real driving force: it merely defines small local produc ers in terms of geographical distribu tion and not in terms of volume and value of production, it doesn’t define any strategic guidelines that public and private bodies should follow to support small local producers, and it establishes derisory penalties in case of misappropriation of the small local producers logo.

WHAT THE DATA SHOW

Given the circumstances, you would expect small-scale producers and their own ex traordinary variety of local products to benefit. Instead, in 2021, the total income from farming in Italy has decreased by 12.9% compared to the last 2 years, while the Euro pean average was largely stable. Yet, by looking at the graph that the European Com mission published based on Eurostat surveys, this sector in Italy has experienced many more peaks and troughs than the rest of the EU, whose trend has been rather constant. The peaks of late 2007, late 2013, and late 2019 were followed by a decline in 2010, 2016, and 2021-22. Even the concept of ‘small local productions’ until recently was vague in Italy, so much so that it was only in March 2022, with late discussions, that the Parlia ment passed a Law defining them. Farmers, breeders and fishermen, are indeed ‘indus trious members’, but are also often low-paid. This is when the need for brands to show consumers the quality and commitment behind their PLs may be turned into strategies to enhance the work of local producers.

55% of Italians prefer local products; 46% are ready to buy local products despite their availability and price

NOVA COOP: BRINGING OUT TASTE AND ‘LOCAL’

The third edition of Prodotti di Piemonte. Il buono del nostro territorio (Piedmont products. The good part of our area) took place from October 6 to 26. Nova Coop's project aims to support local food chains, which showcases, discounted by 20 per cent, about a thousand references of ex cellence from the Piedmontese companies with which it collaborates every day. Origi nally conceived as a special initiative in the year of the pandemic, Prodotti in Piemon te was also well-received by consumers in the following edition, resulting in about 3.3 million euros from 116 tons of products. In the Region of Piedmont there are over 320 suppliers who provide Coop supermarkets in the Northwest District with an assort ment whose value equals 60 million eu ros. There, they make up for a large part of some sections, such as that of wine, where as many as five Piedmont wines are in the top ten best-selling in volume: Barbera, Nebbiolo, Dolcetto, Cortese and Bonar da. Nova Coop's project involved 92 small and medium-sized producers, as well as a few big brands who are widely represent ed in other parts of Italy and around the world: think of Fiorentini, Inalpi, Valgrana, or Sant'Anna, Lauretana, and Valmora wa ters, the now iconic Molecola soft drink, Giovanni Bosca wines from the Langhe, and Menabrea and Baladin beers.

THE COOP REPORT

In August 2022 the Coop research office worked in collaboration with Nomisma on What's Next?, a report that addresses a large number of issues that directly or indirectly influence Italian consumer behavior (such as that of energy and of geopolitical ten sions). Showing a snapshot that goes even beyond the present, the document reveals that within the next 6-12 months 33% of consumers plan to increase their consumption of local products and 23% that of typical regional products (including those with geographical indications).

WATCH AND SEE! THE ‘TALKING’ RECEIPT OF CONAD NORD OVEST

Since October 1, 2022, Conad Nord Ovest has invited customers to come to their stores - except for the ones in the Province of Mantuaand see how their purchasing choices contribute to supporting local production. In the stores of Spazio Conad, Conad Superstore, Conad, Conad City, and Sapori&Dintorni, with the new ‘talking receipt’, locally produced items can be identified, either as single items thanks to the hash mark (#) or in total highlighted at the bottom of the shopping list. "It's important to make our customers understand that their daily gro cery shopping can contribute to the growth of their local area," affirms the company. Last year alone, Conad Nord Ovest recorded 581 million euro sales thanks to the partnerships with its 1,800 local suppliers. Since 2010, with Consorzi Ori Locali and its member companies (151 as of May 2022), the company has focused on regional production, which gave life to the umbrella brand I Nostri Ori in 2021.

A STORY OF ITALIANNESS: CRAI’S CONSTANT DEDICATION

"Local products are the milestone of our supply and in recent years they have become increas ingly important, even more so by the pandemic. Proximity is the ultimate expression of the local product and the relationship with the small local producer.”says Pietro Poltronieri, PL Director of Crai Secom, a group of over 200 suppliers of PL products. "In the last few months," Poltronieri explains, "we have worked on in creasing both the supply and the awareness of the Piaceri brand, by describing Italianness, typical local products and telling the sto ries of artisan producers who have been handing down recipes and culinary secrets from generation to generation."

FROM WORDS TO FACTS: THE ‘ENHANCEMENT’ ACTIONS OF SELEX GROUP

According to its latest Sustainability Re port, 94% of Selex Group’s suppliers for its PL products are from Italy and 192 of its references are Doc, Dop and Docg certified. The brands of the Group have launched a number of initiatives: to men tion a few, the Alì brand has designed in-store ad-hoc fittings for local product enhancement; Dimar, in 2021, developed the ‘Da noi a noi’ (from Us to Us) project, where the story of biodiversity of regional and local products was told by those who cultivated or use them for their recipes. The most far-reaching projects, however, are those of Megamark Group and its Foundation. For example, the distribution of ‘free-from illegal recruitment’ products from the Iamme range is still in progress: after the line of red products (tomato source, peeled tomatoes and other sauces), it is now the turn of the produce. In 2021, an increasingly number of suppliers was involved in the project of the Italian national association ‘No Cap’, and more and more workers joined this ethical supply chain, wrested from slave labor conditions. Compared to the first year, volumes have experienced a +35%. Also at Megamark, thanks to the ‘Senza Sbarre’ project, 10 young inmates and former inmates from a number of Italian prisons were able to learn the art of artisanal taralli preparation with the valuable collaboration of the Tesori d'Apulia taralli factory in Trani, Apulia. The ‘aMano libera’ (freehand) taralli in the flavors of Nero di Troia wine, sun-dried tomato and fennel seeds were baked at the fortified Masseria in Contrada San Vittore and currently sold by the brand’s stores. Located near Andria (Apulia), the fortified Masseria in Contrada San Vittore was in fact turned into an artisanal cooking workshop for the occasion.

WHEN THEY SAY "IT'S A LONG HISTORY": CARREFOUR

ITALIA AND LOCAL PRODUCERS

That of Carrefour Italia with several suppliers of the Filiera Qualità, Bio and Terre d'Italia lines is 20-30 year-long relationship. The one with Terre d’Italia, for example, is strengthening, es pecially for some sections, such as that of fruit and vegetables, bread substitutes, and cold cuts. This is due to the close collaboration with Fdai (Signed by Italian farmers, en.) for bre saola and sliced prosciutto in pouches, chees es, and the launch of Gioia del Colle Pod moz zarella cheese, and wines, in particular for the sales of Prosecco Valdobbiadene Docg and Asolo Docg. "We work with different Italian re gions to promote their traditional products in our stores, as we did, for example, through a partnership with Regione Lombardia and Fili era Agricola Italiana," says the company. As for Filiera Qualità, on the other hand, which has recently turned 20, 85% of its assortment is made by national suppliers, 10,000 by breed ers and growers and from Salone Carrefour, which took place in September 2022, also by two newcomers. "After nearly three years of covid-19 pandemic and 8 months of Rus sian-Ukrainian war, consumers have a lower purchasing power, and on the other suppliers upstream in the supply chain are incurring unprecedented increases in the cost of raw materials and risk inadequate compensation for their work. By promoting the excellence of made in Italy, therefore, we can play an impor tant role."

ICE AGENCY SAYS:

Established in December 2011, Ice is the government agency for the promotion of Italian com panies abroad and their internationalization. Rebuilt under this legal body on the ashes of Istituto per il Commercio Estero del ‘45 (which took over the fascist Ine), today the agency is chaired by Carlo Ferro, who has affirmed "In today's complex scenario, the ability to network is fundamental for our business es. At Ice we are investing a lot in e-commerce and have led over 7,000 SMEs to sell on the web. The results are clear if we consider that the share of on line exports on the total has increased from 6 to 9% in 3 years."

THE STONE GUESTS: THE REGIONS

According to the Immagino 2022 Observatory, in the ranking of regions whose foods are most in demand, Trentino-Alto Adige stands out, driven by high-value products such as speck and sparkling wine. Silver podium for Sicily thanks to Doc and Docg wines, ready-made sauces, oranges and beers, together with its typical baked products. In 3rd place is Piedmont, especially thanks to Doc and Docg reds, beef and cheeses such as crescenza and robiola. Leap up for Puglia, which, while ranking 9th overall, is in 3rd place among the best performing regions in 2021 with +8.3% over 2020, given mainly by red wines, taralli, mozzarella, burrata and chickpeas.

...AND IF LARGE-SCALE DISTRIBUTION IS NOT INVOLVED....

In some cases, it’s big Internet players, such as Amazon, that are interested in the potential of local producers, and not brands. In fact, in 2015, Amazon launched Made in Italy, a showcase of products from Italian SMEs and artisans. Thanks to this in itiative, the products on the platform are not only available to users connected from Italy, but also to the French, German, Spanish, English, American, Arab and Japanese domains. Until last month, the showcase included more than 4,500 artisans and SMEs and 1 million products, and from October 17, 2022, 2,000 additional references from the Region of Umbria - the 15th region to be included in the Made in Italy - have been added. The role of Agenzia Ice in mediating between Regione Umbria and Amazon for an agreement aimed at supporting the digitization and internationalization of small and medium-sized businesses in the area, was crucial. The agreement between Amazon and Regione Umbria also includes free online training opportunities: a webinar dedicat ed for local businesses to learn about the Made in Italy showcase and an intensive course (called "bootcamp"), open to 100 SMEs and startups, designed by MIP Politecnico University of Milan and held by Amazon itself.

CONCLUSION

There was a time, 2600 years ago, when the Roman consul Me nenius Agrippa compared the importance of the People's work for the State to that of limbs for the body, supported and nour ished by them. Even today, despite millennia of evolution and change (first and foremost the automation of work processes) farmers, ranchers, fishermen, expect to be valued as they are backbone of the Italian primary sector: a "backbone" composed of many small "vertebrae," they may differ for political reasons, but connected to each other by the economic effects and the need to stand together. l

Maria Teresa Giannini, Professional Journalist specialized in Large-scale Distribution.

THERE'S ROBERTO COMOLLI, CEO AT CUORE DELL’ISOLA , TO TALK WITH PL MAGAZINE.

The exclusive excellencies of Abbi Group

Although linked to two entities, the company, directed by Giangiacomo Ibba, preserves its independence both in its formats and in its own brands.

“Today, dressing up your products is no longer enough, you have to know how to design them. I believe there’s still room for discoveries and that lots of industrial brands can be replaced.”

Abbi group now has 320 points of sale and six brands, including wholesalers and local stores, for a total of over 150,000 square meters of commercial area and 1,200 workers, operating in Sardinia, Lazio and Abruzzo. From the financial point of view, to mention only a few figures, the 2021 balance sheet outlined an incre dible growth - a net income of up to 511.9 million euros , compared to the 382 million euros of the previous year. In addition, Abbi, historically partnering with Consorzio Crai and, since the 2021 spring, also with Despar Italia, develops its own formats like the new Tuttigiorni, and exclusive PLs. There’s Roberto Comolli, CEO at Cuore dell’isola to talk about it with us.

What are the Abbi Group lines today?

There are two lines: ‘Cuore dell’Isola’ and ‘La rosa dei gusti’. The first one is an ethical brand with Sardinian ingredients, when available, but it’s not limited only to typical, or regional sup plies. In fact, it includes, to name a few, pasta orecchiette and trofie, and of course we also

have the original orecchiette from Oristano. In other words, we want to value our Island, but also our consumers, by looking for the right balance that is always difficult to achieve, given how rich our Italian food is.

What about the story of the two brands?

‘Cuore’ was founded 5-6 years ago and it has been managed by our offices in Milan for almost one year and a half now. I’d like to add that, by the end of the year, we’ll complete an interesting rebranding project. ‘La rosa dei gusti’ is more recent, since it started in 2020 and so it’s not even two years old. It is a true brand, with a designing process that took its inspiration from the fashion world, where stylists invent and create and third parties pro duce, trying to find the best value for money.

Any fun facts?

Within its supply, ‘La rosa dei gusti’ offers, on special occasions, haute-cuisine recipes that are not always affordable, such as Kobe ravioli, or grab and fresh caviar, as well as desserts for holiday seasons, such as panettone, made with our new exclusive recipe, or some prod ucts of our own making - i.e. mayonnaise made with olive oil with no additives, fresh pesto sauce with Vessalico (Imperia) garlic, with no preservatives or other substances and, thus, 100% natural. And I could go on with the list, but, actually, I prefer to say that dressing up your products is no longer enough, today products must be designed.

What are the current figures of the two brands?

It’s about 170 ‘Cuore dell’Isola’ references, with a 70% growth rate. ‘La rosa dei gusti’ boasts, instead, 300 references, with a 150% growth rate.

Product innovation: what’s cooking?

Actually, rather than cooking, we should say baking. In other words, ‘Cuore’ doesn’t have a dessert segment yet, because in Sardinia, we don’t cultivate soft wheat, but rather buy it. However, now, together with Coldiretti, we found an area for this crop. So, next year, we’ll have desserts too. And if we talk about best sellers, our flagships are Guttiau bread, wines, and fresh bread.

Are you planning to export ‘Cuore dell’Isola’ also to the rest of the Crai world?

Well, ‘Cuore’ is first of all an ethical brand and, for this reason, it favors local production, but with no long distance transport involved which would be inconsistent with our sustainability approach.

What is the role of the new ‘Tuttigiorni’ format in the development of ‘Cuore dell’Isola’ line? ‘Tuttigiorni’, launched last spring and now present in Cagliari and Sassari, in Sardinia, with great development plans, is a Edlp format, whose strategy is based on our brand and which will therefore boost our supply for sure. In other words, I believe in two things, both fully con firmed: distribution can work well, very well, with no ‘by that date’ flyers and industrial brands - ‘Tuttigiorni’ proves it. The two shops of Cagliari and Sassari performed better than the rest of the group and, despite the small numbers of PLs available, we recorded 32% of volume share in Cagliari and 40% in Sassari.

Don’t you think the top-range PL segment, in particular in food specialties, is becoming too crowded?

I don’t think so. Every distributor has its own role and positioning on the market, and so there are several differences, also linked to the area they operate in. Furthermore, industrial products are still a lot and there’s room for PLs of every range, from first-price to premium segments. For this reason, our 41 suppliers of ‘Cuore dell’Isola’ are likely to increase.

Talking of Abbi Group, how much do the Crai brand or brands count?

They are important and will continue to be, because the objective is to invest in PLs. And this is true also for Despar brands, since Abbi, after the acquisition of 16 Gieffe points of sale (in March 2021) has become also Despar Sardegna, then converting 33 pos from Simply to Despar. l

Luca Salomone

Professional Journalist specialized in Consumer Goods, Distribution, Shopping Centres and Finance.

The new architecture of the product offer generated by emerging consumption and the role of Retailer Brand products opens new models of collaboration between Brand Manufacturers and Retailers. On the one hand, the Category, field for syner gistic marketing actions, on the other, the production of MDD products by the Brand Manufacturers, with the sharing of product innovation over time.

How is the role of Retailer Brands, Industrial Brands and SMEs evolving in FMCG supply chains and in retailer chain offer?

Retailer Brands are growing globally and in European countries beyond any ex pectation, with market shares exceeding 50% in several countries. The success of Retailer Brands with different positioning and the growth of discounters, with Retailer Brand sales of 60% - 90% in the channel, is a quantitative measure of a phenomenon that is destined to endure. The qualitative measure, on the other hand, is the establishment of buyers' and consumers' perceptions of Retailer Brands’s reliability, credibility, sustainability and innovative attitude, which live up to, or actually overcome, National Brands.

On the other hand, faced with the obvious, sometimes explicit, the strategy of retailer chain focusing on the intense and rapid development of Retailer Brand and the growth of discounters (today accounting for a share of 21.7% according to Nielsen and, in a couple of years equal to a share of 24%, according to the forecasts of IPLC Italy) the strategy of National Brands and/or SME production companies appears sometimes unclear and inconsistent.

National brand companies are more extended and varied than companies in retailer chains, but it seems hardly possible to imagine that they are not strengthening or designing strategies for dealing with the phenomena. This is certainly an interesting matter to all FMCG enterprises.

NATIONAL BRAND COMPANIES, SMES AND THE DEVELOPMENT OF RETAILER BRAND PRODUCTS

As for retailer brands, several ‘native’ brand enterprises have established with major retailers , among others, the production of retailer brands products. In several cases, the ground for collaboration is the category, the most important strategic business unit in the organizational models of retailer chains, along with channels and points of sale, to generate the expected commercial and managerial performance. Thanks to the Category, advantages sinergy can be identified, through data

Fonte: NielsenIQ RMS MAT Q2 2022

sharing and retail-mix choices, in order to plan positive actions and outcomes for the benefit of National Brands and retailers. That of retailer brand production by branded companies is a dying taboo: fewer and fewer National Brand companies feel the need to use different owned or controlled factories to disguise their involvement in production.

In these days, a branded company has just started production on behalf of a discount chain, using its brand name on the backpack of the discounter chain's retailer brand products. For SMEs, on the other hand, the dilemma is how to produce retailer brands and, at the same time, retain the retailer, so as not to be replaced by a competitor and not to jeopardize their margins. Several SMEs, however, without a partnership with large retailers through retailer brand production, would have never reached the same distribution value and volume they have achieved. For example, for hundreds of SMEs, which developed Regional, PDO, PGI, PL lines, often exported, retailer brands have been an extraordinary, if not unique, opportunity.

THE DISCOUNTERS: A STRATEGIC CHANNEL

The current growth rates of discounters, a channel present in Italy for several decades now, are ac celerating and, according to Nielsen, are currently similar in percentage, to those of the e-commerce channel.

If the discounters, several years ago, were a taboo for National Brand companies, today wellknown of them are on the rise, coupled with targeted in-store communication and discount fly ers. For National Brands it’s hardly imaginable that consumers have no access to the National Brand products in almost ¼ of the retailer chain market. On the other hand, some discounters have decided to include branded products to make their stores look more attractive, improve their reputation, reward their customers, and make them perceive the great value for money of Retailer Brands over the National Brand product, by comparing them in the same store.

Including National Brand products on the flyer leads to a larger number of visitors in stores, category rotations, and promotes retailer brands. In fact, retailer chains aim to assess sales and margins of stores, departments, categories and their products, including retailer brands. A flash-survey aimed at professionals in FMCG has been reported below. Consisting of one ques tion with 4 different closed-ended responses and only one option allowed (the one considered most likely by the respondent), the survey gives an interesting insight into the current moment. See the questions below and, if you want, try to provide your answer as you read the questions, then compare it with the results below.

In light of the extraordinary growth of discounters in Italy, what will the National Brand do?

❶ It will gain a stronger shelf presence in discounts.

 It will establish all-round collaborations with non-discount brands, up to the production of retailer brands, making sure they keep their National Brands sales shares under these retailers.

 It will heavily invest in R&D, new products, and communication, (re)winning over consumers.

 It will compensate for the sales decline in the Italian market with more profitable posi tionings abroad, with larger, more reliable, and less expensive retailers to manage

This promotional campaign by Lidl compares the basket price of its Retailer Brand products with the price of other branded products in the pos

The results were as follows:

50%

of respondents chose the second answer, valuing the possibility of a more intense and privileged partnership between ‘Brand manufac turers and Brand retailers.’

18%

chose answer three: the domestic market is increasingly mature and competitive, and oppor tunities abroad offer less costly sales growth and greater product profitability.

21%

chose the first answer: discount retailers are becoming such an important channel that National Brands can no longer ignore them.

Finally, 11% of the respondents chose the third answer, probably confident in the Na tional Brands’ ability to maintain their leading role in product innovation and attraction over retailer brand products.

Obviously, we’re still in the game and the future may hold new challenges. To conclude, some highlights on the current scenario as a further:

➜ National Brand products are gaining an ever-stronger shelf and flyer presence in some discounters, improving the attractiveness and reputation of the discounter to its shoppers and consumers.

➜ SME products (featured in assortments, including exclusively or as Retailer Brands) are a means to show support to the local area and communities, especially by non-Italian retailers.

➜ Two major retailers in Italy have announced Retailer Brand sales share targets to be around 40% and 50% in the medium term.

➜ Affordability for consumers is increasingly being communicated in terms of smart spending, value for money, etc., as much for premium and gourmet products as for basic, essential, fixed-price products.

➜ Discounters offer value-added and affordable brands and products for health, sustain able, for your daily wellbeing, with organic, PDO, PGI certifications or approved by authoritative bodies or associations, as in the case of several Retailer Brand in retail.

➜ Some retailers who innovate the omnichannel digitally, with different loyalty programs, for customized communications, with promotions and exclusive initiatives targeted at individual cus tomers, enriching their supply with catering proposals, services and value-added products ...

➜ ... some others chase discounters risking, with no ‘upstream conditions’ in their supply chains and consistent positioning, not being competitive and credible.

➜ Some national brands launch marketplaces by developing direct-to-consumer (D2C) rela tionship models that reduce the intermediation of distribution and retail and ...

➜ ... some retailers develop specialized marketplaces aimed at specific con sumer and retailer targets and needs, introducing themselves as ‘category killers’ and challenging the marketplaces of large generalist online retailers.

Paolo Palomba

managing partner Expertise on Field/partner IPLC Italy

Marca by BolognaFiere:

more than 900 exhibitors, 22 retailers in modern distribution and 6 pavilions

Over 900 exhibitors have confirmed their pres ence at the nineteenth edition of Marca by Bo lognaFiere scheduled on 18 and 19 January 2023. To complete the parterre of the only Italian fair dedicated to the private label, 22 of the most important retailers of Modern Distribution gath ered in the Scientific Technical Committee: Ard Discount, Brico Io, Bricofer, C3, Carrefour, Con ad, Coop, Coralis, Cortilia, Crai, Decò, Despar, D.it-Distribuzione Italiana, Italy Discount, Lekker land, Marr, Risparmio Casa, S&C, Selex, Unes, VéGé and, last recent entry, MD.

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The business community of the sector will have the opportunity to visit the six pavilions involved by Mar ca by BolognaFiere for the approximately 23,000 square meters of net exhibition area, confirming the growth that the private label is recording in Italy as in Europe.

The two thematic salons Marca Fresh and Marca Tech are confirmed. The first one, which will occupy an even larger area this year (850 square meters), is the successful format reserved for fresh and very fresh fruit and vegetables. Marca Fresh, which is reg istering a positive response among operators, will be an experiential container for all players in the supply chain, a place to share content, experiences, enhance best practices and new market trends. Technological acceleration and innovation in the area of sustainabil ity are needed now more than ever. With this in mind, Marca by BolognaFiere will host the ninth edition of Marca Tech dedicated to intermediate goods for the MDD supply chain. Marca Tech will offer the business community the latest trends to innovate and operate sustainably and effectively

At Marca by BolognaFiere, the outcome of the Inter national selection of novelty products organized in collaboration with IPLC-The Retailer Brand Specialists will be presented; it is aimed at finding the best products in the main categories of FMCG, ready to break through to international markets. Also on dis play at Marca by BolognaFiere are the brands’ novel ty products, those released on the market in 2022 or being launched in 2023.

To stay up-to-date on the contents of the event: marca.bolognafiere.it Linkedin Twitter YouTube

ESSELUNGA announces its first brand specialties pos

On october 26, the temporary store ‘Le eccellenze di Esselunga’ (Excellencies of Esselunga) opened to the public in the most famous street of Milan for tasty food.

Less than a year after the launch of its experimental temporary store entirely dedicated to its pastry brand, Elisenda, Esselunga opened its first pos on October 26. Here, Esselunga has focused on its ‘Cucina Esselunga’ food line supply and assortment’. Located in via Spadari 4, in Milan, this pop up store offers a product line that is the fruit of a 30-year long tradition and includes, among others, consumers’ top choices.

In fact, the supply embraces the traditional dishes of the Italian tradition, together with the main in ternational recipes, not to mention an assortment of references that reflect the need for balanced, yet tasty meals. Finally, the hot rotisserie, serving 200 dishes in total, designed and prepared by Esselunga.

The intimate atmosphere of the delicatessen, which welcomes customers at the main en trance, is followed by the area of Elisenda spe cialties, the pastry brand born in collaboration with the michelin-star restaurant ‘Da Vittorio,’ with the Cerea brothers. Here, you can buy cakes and pas tries of the Italian tradition, such as panettone and veneziana, expressly packaged. To top it all off, a café and a small outdoor area where customers can en joy the specialties they bought.

Federica Bartoli Journalist specialized in Large-scale Distribution

Icam, the ever-evolving chocolate with international vocation

With its chocolate, it supplies 60% of the international market, while the production for the distribution brands accounts for 40% of the turnover.

By Maria Teresa Giannini

An iconic Italian chocolate company based in Lecco, with 26 thousand tons of cocoa beans bought in 2021 (+4% compared to 2020) and 400 employees, Icam has shown a downward trend for several years now. It started from a 135 million turnover in 2015, and, six years later, closed its 2021 turnover at 189 mil lion euros (+40% since then), with a 12 million increase recorded only in the last year. Actually, since its foundation in 1946, in Morbegno, the world of chocolate processing and market has changed a lot, not to mention the way of being on the market, says Giovanni Agostoni, Global Sales & Marketing Director at Icam.

How has the chocolate market been over the last few years?

Chocolate has experienced an internal diversification: greater varieties; then, a grow ing preference for cocoa rich in solids, seeking ever new and appetizing combina tions of different tastes, up to the ‘free-from’ segment, which is continuously growing as it meets specific food needs. Today, Icam is a world leader for its high-quality products and organic references.

How do you divide your sales between Italian and foreign markets?

With our chocolate we supply 60% of the foreign market, which is particularly into the organic and fair-trade cocoa, and 40% of the domestic market. Sales can be attributed to three main business areas, with our company brands and their 42% share standing out (i.e. Vanini, Agostoni and Icam Professional), followed by private labels - predomi nant in the Italian and international large scale distribution - with 40% and, finally, the semi-finished products for the confectionary industry (18%).

Chocolate is king in pastry-making , but, in a difficult period like the one we’re living in, many Italians and Europeans could do without it. What consequences would such a change in consumer habits have?

This scenario, confirmed in these last weeks, has deeply changed since the first months of the year, when we recorded an increase in high quality and organic product con sumption. However, there is considerable uncertainty over crucial issues such as the war in Ukraine and international resolutions on the energy price cap. Plus, the inflation level is likely to remain high and continue to affect the shopping basket.

The question of energy and that of the procurement of materials for packaging is affecting prices, especially in energy-intensive companies. To which extent does it impact you?

Because of the scarcity of raw materials and the rising costs of energy, we, as many other companies, had to apply some price increases. We did it only after doing our best to keep them as low as possible. For example, we negotiated with the paper mills that supply us with the packaging materials, with the aim of minimizing the impact on production. As far as energy is concerned, due to our trigeneration unit we can produce a relevant amount of the energy supply we need. However, the overall increase in energy costs is a huge problem that cannot be born in the middle-long term.

How much and how do you invest in sustainability (environmentally and socially)?

Sustainability has always been a key factor for our company, which is also reflected in our motto ‘Chocolate By Nature’. Our new corporate identity is based on four pillars: supply chain, environment, people and innovation. Take Uganda Bio bars, for example, they’re entirely made of cocoa produced in Uganda. Thanks to our collaboration with local farmers, in fact, the whole process of cultivation, harvest, fermentation, drying and processing of cocoa beans is locally made, ensuring unique organoleptic properties. The packaging of the Uganda bars is the first compostable pack made in Italy in the chocolate industry, by using paper and a patented biopolimer, composed of corn-based biomass. Thus, the packaging is 80% made of renewable and compostable raw mate rials, according to the industrial waste disposal regulations (disposed as organic waste in Italy).

News for 2023?

The industrial plan includes big investments, both technological and non, to boost com pany innovation with: the purchase of new machines, in order to diversify and further increase production; structural expansions of the plant; and the creation of the Innovation Center, connected to our training hub ChocoCube, which will turn into a lab oratory for pastry technicians to create new recipes de signed for industry professionals. At the same time, the R&D department will study and experiment new com binations, to guarantee an increasingly innovative and up-to-date supply.l

Chocolate, a dynamic market with increasing segmentation

With an ever wider assortment and a market segmentation that can meet all consumer needs, the PL supply of large-scale distribution has been the major driving force of this market growth.

After a positive trend in 2020 in terms of household consump tion, last year the chocolate market proved to be very dy namic. Based on Gfk Italia data, in fact, in the year ended in October 2021, chocolate bars - the main industry segment - recorded a 4.7% growth, while chocolates +3.9%. Supermarkets represent the leading channel in chocolate sales, with a penetration share of over 77%, followed by discounters, which are chosen by one in two shoppers. With an ever wider assortment and a market segmentation that can meet all consumer needs, the PL supply of

In 2021, chocolate of Crai brand recorded a significant increase in shares of over two percentage points.

Chocolate by nature

Our nature, naturally

Chocolate has been our passion for over 75 years.

We have always taken great care of our cocoa supply chain, the people who contribute to its development, the planet we inhabit and the technological innovation throughout the production process.

Supply Chain, People, Environment, Innovation are the foundations on which our mission is built.

Cocoa, a precious gift of nature, has been the centre of our lives for three generations. Throughout the wonderful and complex process of the transformation of cocoa into high-quality chocolate, we respect the raw material and bring the very best out of its essence and its organoleptic profiles, in order to offer our customers a product that is perfect in every way.

We work with integrity and with respect for current legislation, both in Italy and in the cocoa-growing regions, with the specific aim of continually fostering an exchange of skills and a mutual enrichment with our associates, establishing relationships of trust that create value based on a code of ethics that we share with our partners and which we are resolutely committed to upholding.

Our chocolate is made with humanity, protecting natural resources, for the benefit of society and of the generations to come. We look after every single plant and the wellbeing of the land on which it grows, always ensuring its biodiversity is preserved

We dedicate technology and research to the quality of our chocolate. Each new system that we introduce at Orsenigo is the tangible proof of an ongoing process of innovation that is reflected daily in what we offer our customers.

We are committed to producing chocolate through cultivating our ethical, environmental and economic responsibilities, offering the results to the communities in which we operate.

Chocolate by Nature - Because chocolate has always been in our nature.

www.vaninicioccolato.com | www.icamcioccolato.com

people supply chain environment innovation

large-scale distribution has been the major driving force of this market growth: from or ganic to healthier references, from premium local specialties to fair-trade, up to the more innovative tastes and ingredients.

QUALITY INGREDIENTS AND LOCAL SPECIALTIES BOOSTING CONSUMPTION

One of the most interesting trends seen in the chocolate market in the last months is un doubtedly the growing attention of consumers toward local specialties and high qual ity products. “In 2021, sales recorded a positive trend”, stated Pietro Poltronieri, PL Director at Crai Secom. Specifically, shares significantly increased by over two per centage points. It goes without saying that the performance of the pre mium segment was outstanding, especially for those products with a stronger connection with the local area. In this regard, we widened our premium supply (Piaceri brand) including a new Modica Igp chocolate line, available in three different versions. Among oth ers, this line won the Excellence Award in the last edition of the Plma trade show held in Amsterdam. In prospect, we’ll work on the segment of chocolates that we have entered only recently with a premium supply (cuneesi, giandui otti, cremini and truffle chocolates), under the Piac eri brand. We believe that PL can definitely make a

Chocolate is a product that has shown a certain dynamism in recent years, linked above all to the growth of home-made sweet preparations which occurred in 2020 during the initial phase of the pandemic.

difference.” Last year, Iper La grande i PL chocolate recorded a positive trend as well.

Valentina Marsico, Head of Team hopper & category insight, it ac counted for 4% of the total category sale. “Private labels increased by 10% in value and by about 12% in volume. In 2022, PL products accounted for about 4% of the to tal turnover, despite value and volume sales slowing down. Furthermore, compared to last year, the premium segment under Viag giatore Goloso brand has increased.”

AN EVEN WIDER CHOICE OF PL

Large-scale distribution brands are focusing on rich assortments that include innovative, quality, and healthy products. “In the last years, we’ve been working to reinterpret and expand our high quality supply, specifically our Premium line», stated Luigi Borrelli, Food Product Manager at Despar Italia - “We mainly focused on including a higher percentage of cocoa and single origin co coa in our chocolate, as well as adding ha zelnuts, pistachios, etc. We also developed two organic references and two other refer ences with no added sugar, while next year

we’ll probably widen our supply even more. Compared to the figures of 2020, when a +30% was recorded over the previous twelve months, that of 2021 was a negative year. When comparing the data of 2020 with that of 2019, however, we can see an increase by over 15%. Also in 2022, progressive value sales through August were still negative, as seen in the category as a whole. The points of sales under our brand, however, are performing not as bad compared to the market in terms of total family (-3% as against -5% of the national piece of data) and PL (-7.7% as against -11%). Specifically, the premium and organic lines are sluggish compared to the others.”

GROWING INTEREST IN HEALTH BENEFITS OF CHOCOLATE

In recent years, chocolate has prov en to be a fairly dynamic product, mainly due to the rise in home baking recorded in 2020, in the early stages of the Covid-19 pandemic. “Togeth er with this ‘rediscovered’ interest in this type of consumption and the ever-present impulse and gratifica tion purchases - affirms Francesco Iuculano, Sales Manager at Todis - a new element is now boosting this

category: the special at tention by consumers of all ages to some health benefits of dark choco late and quality choco late in general, such as those linked to their car dioprotective functions (for the flavonoids and polyphenols contained) and antidepressant effect, since chocolate increases serotonin.” In addition to these health benefits, consumers are even more curious to discover new flavors, such as salted caramel and dark chocolate with citrus fruit and peanuts, for instance, which show a fairly dynamic trend. “That of 2022 is a year characterized by unprecedented weather conditions that aren’t helping the industry,” adds Francesco Iuculano. “How ever, bars, specifically protein chocolate bars, are making up for any downturns given by sweet chocolate snacks. Over all, we believe that, if modern assortments can identify new taste trends and, above all, ensure gratification and quality, this category will perform well in terms of sales and customer loyalty, mainly thanks to a private label that is the core business of our brand.”l

Fabio Massi, Journalist specialized in Retail and Mass market issues.

Increase in sales of chocolate of Despar brand in 2021 compared to 2019 (although it decreased compared to the previous year).

QBerg analyzes the trend of the offer of Chocolate Bars on the promotional flyers of the large-scale distribution and on the main e-commerce sites of Gd, Amazon Fresh and Q-Commerce Apps.

QBerg, the leading Italian Research Institute in price intelli gence and cross channel assortment strategy analysis (flyers, points of sales, e-commerce and newsletters) has analyzed the chocolate Bar/tablets supply trend in Hypermarkets, Supermarkets and Superettes (HSS), as well as Large-scale distribution, Amazon Fresh and Q-Commerce Apps e-commerce over a year.

Data show that seasonality is more evident on the Flyer, which is also confirmed by the graph that follows. The Intensity Promo (represented by the Qp4 value, an index calculated based on the number of flyers, points of sales and products and their related advertising period), shows a downward trend in the warmest months. Seasonality has instead remained essentially unvaried in terms of e-commerce virtual shelves throughout the year, recording three significant peaks in January, May and October.

The chocolate tablets trend of the total market and that of private labels alone are equivalent. Noticeable is only that, compared to the total WEB display, PL is increasingly represented, probably due to the stronger presence of the letter in December and January, proportionally increased compared to the market trend.

By Analyzing the graph related to the average price/kg trend in the reference 12 months, three phenomena stand out.

First, the significant price difference between the two channels on the total market. Whether it is due to price promotion activities, in the case of flyers, or a bet ter positioning of top-of-the-range products, in the case of the web, the point is that on average the differences range from 3.5€ to 6€ for e-commerce.

Such difference is far less significant for PLs, for which the WEB is on average 1€1.5€ more expensive in the online world.

Second, while on the Flyer prices for the total market are overall stable, little affected by seasonality, a sharp rise was recorded in websites, ranging from 16€ in March to a peak of 18€ in June, which lasted until October. PLs also recorded significant fluc tuations on the Flyer but were more stable on e-commerce.

Third, the price/kg difference between the total market (includingPLs) and PLs themselves is clear. With the exception of the fluctuation recorded on the Flyer be tween July and August, the price difference is notably in favor of PLs.

Dark chocolate is always the leader on both e-commerce websites (37.2% display Share) and flyers (28.98% Qp4 Share). As far as the latter is concerned, the ‘line’ promo products (generally referred to as “Various flavors”) and accounting for over 35% of the Flyer visibility Qp4 share, have a remarkable impact.

Milk chocolate has a strong presence on the Flyer, while Specialties, which are bars with different flavors, are the second segment on the web.

Makers: an extremely concentrated market, with strong PL. This is what emerges from the analysis of the maker display share, on the Flyer and on the virtual shelves of e-commerce websites

The top 5 brands managed to reach the highest positions just for a few percentage points. These brands only account for 70% of flyers and little less than 69% on the web.

PLs, which rank fourth on the Flyer and third on e-commerce, prove to be strong. The remaining makers play a less significant role in both channels.l

Fabrizio Pavone

Marketing Manager and Business Development at QBerg

Marca

by BolognaFiere 2023 presents the award on the most attractive products for international markets

Following the great success of the 2022 edition, the organ izers announce: the 2 international private label selection (IPLS) “Private Label Ideas and Innovations for Interna tional Markets 2023”Awards for new products, ideas and projects designed for the Private Label sector and new international markets submitted by Exhibitors at the 2023 Marca by BolognaFiere

Manufacturers and suppliers are essential players in Private Label supply chains in the different countries, playing a particularly important role together with their retailer partners in product and market innovation and development. For manufacturers, putting forward and effectively implementing new ideas is key to being se lected, retained and appreciated by their retailer clients.

The products submitted must belong to the categories of large consumption, from frozen to fresh foods, from home care products to personal care products, from animal feed and care to other non-food products. The selection will be made by a jury of international private label experts who will follow three main assessment criteria: the product’s pertinence, suitability and marketing potential for interna tional distribution and extension; the originality, innovative / novelty features of the product and process (recipes, formats, processing, flavours, uses, etc.); advantages and specific sustainability features (ingredients, supply chain, transparency, materials, health promotion, etc.)

Ten products/projects will be selected and the winning products/projects will receive a specific advice from Sen ior PL Experts in the various countries on the development potential in new markets of their products and especially, an entry strategy into one of the most promising European markets. In addition to the 10 winners, the jury reserves the right to mention up to a maximum of 10 other products, which although not selected, have a specific aspect or at tribute of particular interest. The deadline for applying is December 16 2022

marca.bolognafiere.it

media partners

Marca 2023:

700 exhibiting companies at the trade show dedicated to PL

The 2023 edition of the event in Bologna will take place on January 18 and 19: 6 pavilions and 23 thousand square meters of exhibition will welcome the main players of large-scale distribution.

By Federica Bartoli

The nineteenth edition of MarcabyBolognaFiere will take place in the capital of Emilia Romagna Region on Jan. 18 and 19, with around 700 participating companies expected in six pavilions for a total of 23,000 square meters of exhibition area covered.

Among others, 23 leading players in large-scale distribution, including Ard Discount, Brico Io, Bricofer, C3, Carrefour, Conad, Coop, Coralis, Cortilia, Crai, Decò, Despar, D.it Distribuz ione Italiana, Italy Discount, Lekkerland, Marr, Risparmio Casa, S&C, Selex, Tuodì, Unes, Végé and the new entry, MD, will take part in the one and only event entirely dedicated to private label. The thematic exhibition halls, Marca Fresh and Marca Tech, are once again confirmed: MarcaFresh, reconceiving this year’s spaces by occupying an area of 800 square meters, will be dedicated to sustainable inno vation in the fruit and vegetable sector, an experiential area open to all players in the supply chain, where to share content and new market trends.

Marca Tech, on the other hand, will act as a hub dedicated to companies that want to keep-upto-date with the development of new technological solutions to optimize their production flow, effectively use their resources and create sustainable packaging. After debuting in last year's edition, moreover, the International private label selection award (Ipls) will be back to honor the ten most desirable and innovative private label products. The award, promoted by Marca by BolognaFiere in collaboration with Iplc-The retailer brands specialists, will be an opportunity for companies that aim to develop an international-oriented strategy by focusing precisely on PL products, which today embody one of the primary levers for entering international markets in partnership with distributors.

The references nominated for the award fall with in the different FMCG categories and are selected and evaluated based on three main criteria, namely, relevance, newness, suitability and marketing oppor tunities for distribution from an international perspec tive, originality and innovation of product and process, and finally, elements of sustainability.

Ajury

of international PL experts will appoint the ten finalists and will give them specific advice on po tential market opportunities.l