Vino e GDO

Based on wine market prospect, the message from Vinitaly is really clear: the terrible domestic market trend is luckily balanced by the export. In both cases GDO role is very important. Around 65% of the domestic market is represent by GDO but also for the export GDO is pretty important and still grow.

As underlined by SymphonyIRI research (http://bit.ly/10NjCVc) there is a decrease of 3,6% in volume for the whole quantity of packed wine and for the first time also 750 ml bottle goes down. There are different reason for that, first of all the consumption crisis add to 2012 harvest (around -35% in grapes). We also have to consider the rise of raw materials and the rise of the price on the shelf.

During Vinitaly producers and buyers was thinking about wine future in Italy and wineries are everyday more oriented on the export market to balance the reduction of domestic consumption.

We was discussing about business strategy for 2013 and future years to rise the quantity of Italian wines in domestic and foreign GDO shelves.

Consider 2012 market analysis we can decide 2013 business strategy. The big rise of raw material price in 2012 harvest will define new placement based on price. With this situation, price lose power in communication strategy and everything have to be based on different strategy. For that reason shelf disposition will become more and more important from 2013 sell strategy.

In 2013 marketing strategy can't miss promotional programs. Regarding this situation Antonio Cordella, Conad, said that “promotions represent a very important point of power and Conad works in this direction to guarantee a huge range of products also to endorse local productions”

SymphonyIRI research, on the other hand, underline a decrease of selling promotion in GDO. This information is really important and we have to think about it. Giancarlo Gramatica, SymphonyIRI, say that we have to invest in quality products (wine), in communication and in new consumption moment and at the same time keeping the tradition of the products.

Focusing on foreign GDO, Italian wine can be present on the shelves in two different ways: using GDO chains already present in Italy as Conad, Iper, Despar, Auchan, Carrefour and Gigante to contact European main office or with direct relation between foreign GDO and Italian wineries. Indeed, in many cases purchasing office ask information and suggestion to Italian partner about wine to add in portfolio to enlarge their Italian wine offer.

On of the main criticality appeared is the promotional system. Producers have to promote their products in cooperation with others producers and follow similar promotional strategy also to guarantee a communication program during the year focusing on Made in Italy “brand”.