The meaning of the GI System 

The view of the Companies and Consortia

The case ofBalsamic Vinegar of Modena 

PGI

The G.I. System ‐ Regulatory aspects (Reg EC 1151/12)‐ Aim: to sustain certain territories‐ Partial limitation of the freedom of 

competition

The G.I. System 

‐ Should introduce some limitations to companies and industries

‐ Instead…. 

The G.I. System 

‐ There are several examples of how the companies based their success into

this regulated market 

Balsamic Vinegar of Modena & the Consortium

One successful example:

What is Balsamic Vinegar of Modena?

• Balsamic Vinegar of Modena is a very specialvinegar, which has its roots in the ancient Romantimes.

• It is obtained by must (grape juice), instead ofwine.

• Must is reduced by cooking, to get concentratedmust, a very dense, syrupy liquid.

• Concentrated must is then fermented and aged inwooden barrels.

ACCORDING TO DIFFERENT RECIPES, 3 DIFFERENTBALSAMICS ORIGINATED IN THE HISTORY :

Balsamic Vinegar of Modena Traditional Balsamic Vinegar of ModenaTraditional Balsamic Vinegar of Reggio Emilia

Modena  Reggio Emilia

1300“Modenese” Vinegar, or Duke’s Vinegar 

Obtained from the natural fermentation of cooked must, also calledSapa or Saba 

Middle AgeSecret family recipes

Recipe of LawyerAgazzotti

Recipe ofGiusti

Cooked Must+

ageing

Grape must+Aged vinegar+

Strong wine vinegar

History of Balsamic Vinegar of Modena

1700 Its ‘Balsamic’ name derived from presumed medical and

healthy properties

Grapes Grape MustCooking

Traditional BalsamicVinegar of ModenaPDO

Traditional BalsamicVinegarof Reggio Emilia PDO

Traditional Balsamic Vinegar of Modena

• Barrels are kept in attics.• Fermentation is slow inwinter (cold), fast insummer (hot), and it causesa natural concentration ofproduct by evaporation.

• Every year, the content ofeach barrel is moved intoanother, smaller barrelmade of a different wood.

Traditional Balsamic Vinegar of Modena

• After a minimum of 12YEARS in barrels, the resultis a very thick vinegar, richand complex from the agingin different woods.

• A control is run by aConsortium, after theirapproval it can be bottledin a unique 100ml bottle.

• This product is called bylaw TRADITIONAL BalsamicVinegar of Modena.

Traditional Balsamic Vinegar of Modena

Traditional Balsamic of Modena • Thick = difficult to be used• Expensive (abt 1000 EUR/liter)• Scarcely available (a battery of barrels makes 3‐5 liter/year)

Probably for these reasons, local populations used to blend it withsome strong wine vinegar (old documents, Count Gallesio)

A new product was started: it was calledBalsamic Vinegar of Modena

• Today, Balsamic Vinegar of Modena is the product commonly available on themarkets of a very large number of Countries.

Balsamic Vinegar of Modena: the development of a commercial product

Winemaking

Cooking

Fermentation and ageing

Aceto Balsamico di Modena

Grapes Grape Must

Vinegar MakingConcentration

Balsamic Vinegar of Modena

Commercial Development

• Initially limited to local market, and self‐consumption.• Modenese entrepreneurial attitude,participation to fairsalready in 1861 (Firenze, Giusti company)

• First exports were documented already in 1890• After 1965 impulse to sales, international development• Increased consumption in Restaurants, followed byspecialty shops, supermarkets.

The increased sales volume created increase in production,and new (small) companies on the market.

Competitive development

Balsamic Vinegar of ModenaU.S. Market shares…

Sales are soft for White vinegar, the largest segment, while Balsamiccontinues to grow, andWith Balsamic’s growth, it continues to gain share from 13% of sales in1997 to 15% in 1999.

(source: The U.S. Vinegar Institute, 2001)

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58,092

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+ 25,0

4,247

- 8,0

8,548

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4,294

Analyse - Relevanter Markt und Marktpotential

- 20,0

4,423

- 2,0

36,580

- 2,0

159,579

+ 26,0

40,483

- 8,0

22,989

- 20,0

13,230

- 25,0

11,485

- 4,0

71,392

Balsamic Vinegar of ModenaGerman market

Manufacturing increase:consumption of cooked/conc. must

DataOperators 250

Producers (Vinegar houses) 82

Total Volume 97.500.000 litresBottled Volume 76.200.000 litres

Turnover 700.000.000 €Export on volume 92 %

Medium price per litre IGP 4 €/lIGP aged 40 €/l

Work personnel 600Employees 300

Roots and branches

The ‘filiera’ of Balsamic Vinegar of Modena includes 107winecellars, 52 must concentrators, 72 vinegar plants and 157bottlers.92% of the production is exported: today the product is sold in120 different countries and is among the main ambassadorsfor Italian agri‐food excellence in the world.

Market

The production turnover of Balsamic Vinegar of Modena isover 500 million euros, and the sales turnover is 700 millioneuros. These figures place the product among the top tenItalian PDO and PGI food specialties, alongside Grana Padano,Parmigiano Reggiano, Parma Ham, San Daniele Ham andGorgonzola.

Regulation 4.1

Legislative recognition

On March 25, 1933 the Minister of Agriculture GiacomoAcerbo acknowledged for the first time, with an official act,the “age‐long and characteristic industry of the BalsamicVinegar in the Modena area”.In 1965, specifications were published in the GazzettaUfficiale (Official Gazette) relating to the “Compositioncharacteristics and preparation modalities of the BalsamicVinegar of Modena”.

Regulation 4.2Seal of the EU

The latest milestone in the history of this exclusive anddistinctive product, which has become world ambassador forfine Italian eating, was European recognition: in 2009, after along procedure, the European Commission inserted AcetoBalsamico di Modena designation in the register of PGIproductions.

Regulation 4.3

Always on the look out

Aceto Balsamico di Modena, due to its worldwide success, isone of the most imitated specialties but the recentjudgements from Germany (Cologne and Mannheim, 2015)opened the road for a strong legal protection.This is the one of the most important results obtained by theConsortium and its members.

Consortium 5.1

In the beginning

The first Consorzio Tutela Aceto Balsamico di Modena wasborn in 1993 and the following year the producers took stepsto improve the production specifications and to protect thecorrect use of the Balsamic Vinegar of Modena designation intrade and consumption. The Consortium filed the first requestfor Protected Geographical Indication.

Consortium 5.2

Bumpy ride

The path towards recognition was more difficult thanexpected. There were strong opposing forces from otherEuropean states and within Italy also; the producers split intodifferent groups, compromising their work and their weight.It took 15 years (!) to complete the procedure and finally seethe announcement of the PGI Aceto Balsamico di Modena inthe Commission Regulation 583 of 2009.

Consortium 5.3

The Consortium

In 2013 the producers agreed to rebuild the Consortium, andin 2014 the Italian Ministry bestow the tasks of promotionand protection for the PGI on the renewed Consorzio TutelaAceto Balsamico di Modena

Consortium 5.4

Now

The Consorzio Tutela Aceto Balsamico di Modena representsover 98% of the 97,5 million litres produced in 2014.There are 51 associated companies: among them are some ofthe historic brand names in the field that since the beginningof the 20th century have been contributing to the product’ssuccess both in Italy and on the international markets.

InsideTHE CONSORTIUM

What

The Consorzio Tutela Aceto Balsamico di Modena (Consortiumfor protection of Balsamic Vinegar of Modena) carries out twopublic functions, in cooperation with MIPAAF – Ministry ofAgricultural, Food and Forestry Policies:

• Protection;• Promotion.

What

MONITORING

Business monitoring (correct labelling and presentation), iscarried out by supervisors qualified as public security agents,in partnership with the relevant public security bodies: ICQRF,NAC and NAF.

What

CONTROL AND CERTIFICATION

For the verification of compliance with product specifications,the Consortium collaborates with an independent authorizedcontrol body. The current body, commissioned directly by theItalian Ministry, is CSQA Certificazioni.

What

PROMOTION

The task of the Consorzio Tutela Aceto Balsamico di Modena isalso to promote knowledge of Balsamic Vinegar of Modenaand disseminate its culture, communicating directly both withfinal consumers and with themedia.

What

EVEN FURTHER

To the same basics ends of promotion and protection, particularly on themore remote markets, The Consortium is part of national andinternational organizations such as AICIG ‐ Italian Association ofGeographical Indication ‐ and OriGIn ‐ Organization for an InternationalGeographical Indications Network. We are also strongly supporting theactivities of QUALIVITA in the promotion area.

Why

AUTHORITATIVE VOICE

The Consorzio Tutela Aceto Balsamico di Modena is a bodythat fulfills the essential role of giving a voice to small andlarge producers in the face of institutions (whether they belocal, national or foreign).Through the Consortium, therefore, its associates achieverepresentation and obtain guarantees of regulatoryprotection.

WhyADVANTAGES AND SERVICES

Only the products of associates are entitled to bear theconsortium logo, connected with the PGI designation.In addition, consortium members can avail themselves of arange of services that include information, training, andtechnical and legal consultation; and it is to members that theConsortium passes the numerous requests for visits toVinegar Plants and the offers for promotion and participationto events that it receives daily.

How

MEMBERSHIP OF THE CONSORTIUM

Membership is not compulsory.The companies interested in joining the Consortium mustalready be registered in the inspection plan run by CSQACertificazioni.An annual fixed fee is requested from any members, plus avariable fee based on the volumes produced by the companythe year before.