1. Geographical Indications: Connecting Products with Geographical Origin for
Value Creation.
Flavio Innocenzi

2. DEFINITIONS & FRAMEWORK.
TOPICS:
DEFINITIONS & FRAMEWORK.
A SWOT PERSPECTIVE.
GENERATING A PRICE PREMIUM AND EXPORT OPPORTUNITIES.

3. 1. DEFINITIONS
&
FRAMEWORK.

4. GEOGRAPHICAL INDICATIONS (definition).
“indications which identify a good as originating in the territory of a member, on a region or locality in that territory, where a given quality, reputation or other characteristics of the good is essentially attributable to its geographical origin.”
(art.22(1)WTO TRIPs Agreement)

5. EUROPEAN (REGULATORY) FRAMEWORK.
REGULATION (EU) No 1151/2012
OF THE EUROPEAN PARLIAMENT AND
OF THE COUNCIL
on quality schemes for agricultural
products and foodstuffs
Wines (Regulation (EC) No 1234/2007)
Spirits (Regulation (EC) No 110/2008)
Aromatized wines (Regulation (EEC) No 1601/1991)
Non Agricultural products: not yet harmonized at EU level

6. EUROPEAN (REGULATORY) FRAMEWORK.
Regulation (EU) No 1151/2012: protection of GIs is a means of protecting the EU's 'living cultural and gastronomic heritage'.
Article 3(5) of the Treaty of European Union: shall respect its rich cultural and linguistic diversity, and shall ensure that Europe's cultural heritage is safeguarded and enhanced.
Article 167 of the Treaty on the Functioning of EU:
the Union shall take cultural aspects into account in its action, in particular in order to respect and to promote the diversity of its cultures.

7. EUROPEAN REGULATORY FRAMEWORK.
REGULATION (EU) No 1151/2012
Art. 45: ROLE OF GROUPS.
..a group is entitled to:
guarantee quality, reputation and authenticity of their products on the market, by monitoring the use of the name in trade and, if necessary, by informing competent authorities
ensure adequate legal protection
develop information and promotion
ensure compliance with product specification
improve performance of the scheme
enhance the value of products

8. EUROPEAN REGULATORY FRAMEWORK. any misuse, imitation or evocation
REGULATION (EU) No 1151/2012
Art. 13: PROTECTION (FROM FRAUDULENT
AND MISLEADING PRACTICES).
Registered names shall be protected against
a) any direct or indirect commercial use (in respect of products not covered by the registration)
any misuse, imitation or evocation
false or misleading indications as to the provenance, origin, nature or essential qualities of the product
any other practice liable to mislead the consumer as to the true origin of the product.

9. ENFORCEMENT: legislative foundations/basis.
EU Law:
Reg.(EU) 1151/ Art.13(1)
National Law
EU Customs
Regulations +
Reg.1151/2012
Art.13(3)
Criminal Law Art.515, art.515(2) and art.517(4)
Administrative Fines
(Legislative Decree 297/2004)

10. EUROPEAN FRAMEWORK.

11. Italian agro-food GIs. Fact & Figures.
MARKET DIMENSION
Italian agro-food GIs. Fact & Figures.
2004
2015
Increase
Certified production (tons)
98%
Turnover (million €, EKW)
4.578,70
6.380,00
39%
Consumer sales (million €)
6.420,20
13.200,00
106%
Export turnover (million €)
849
2.800,00
230%
Export volumes (tons)
313%
Source: Ismea

12. Italian agro-food GIs. Market share.
MARKET DIMENSION
Italian agro-food GIs. Market share.
38% 8%
18%
16% 12
14%
Source: Italian Ministry of Agriculture

13. 2. A SWOT PERSPECTIVE.

14. Strengths: Weaknesses: Opportunities: Threats:
- rural development
- cultural heritage
- competitive advantage
Weaknesses:
depend on cohesion and shared values
(role of groups)
Opportunities:
- from protection
- from controls
- for price premium
- for export increase
Threats:
- misleading practices & frauds
- parasitic practices (common food sold as GI)

15. according to EU legal framework.
STRENGTHS:
according to EU legal framework.
REGULATION (EU) No 1151/2012
The quality and diversity of the Union’s agricultural, fisheries and aquaculture production is one of its important strengths, giving a competitive advantage to the Union’s producers and making a major contribution to its living cultural and gastronomic heritage.

16. STRENGHTS.
“Geographical indications' (GIs) for agri-food products are a major asset of the European model of agriculture, acting not only as a tool for protecting consumers interests and reinforcing confidence in high-quality and typical products, but also as a legal and commercial basis for the development of rural areas, the preservation of cultural heritage as well as the promotion of SMEs.”
The SINER-GI PROJECT

17. THREATS.
NAMES MATTER!
CAR
PENCIL
HOUSE

18. THROUGH THE ‘JUNGLE MARKET EFFECT’.
THREATS.
practices liable to mislead the consumer as to the true origin of the product i.e.: HOW TO MISLEAD CONSUMERS
THROUGH THE ‘JUNGLE MARKET EFFECT’.

19. THREATS.
False or misleading indications as to the provenance, origin, nature or essential qualities of the product.
Feta: Greek cheese from goat’s milk.

20. THREATS.
False or misleading indications as to the provenance, origin, nature or essential qualities of the product.
(real) Asiago: Italian PDO Cheese, characterized by marked and irregular holes:

21. THREATS. Misuse, imitation, evocation…
Prosecco: Italian sparkling PDO wine, produced since the XVI century.

22. WHAT’S AT STAKE (all over the world):
THREATS.
Economic Study Shows 60 Billions of Euros in Losses to Italian Food Industry Under Abusive Exploitation of EU Geographical Indications.
WHAT’S AT STAKE (all over the world):
parasitic exploitation practices of GIs and their reputation are jeopardizing the economic and social survival of rural communities all over the world. The cultural heritage of those communities is under serious threat. Exploiting the equity and the awareness of GIs for increasing sales of generic food is an unfair practice, misleading millions of
consumers every day.

23. NEW OPPORTUNITIES FROM PROTECTION.

24. NEW OPPORTUNITIES FROM PROTECTION.

25. OPPORTUNITIES FROM CONTROLS: ADDED VALUE FOR CONSUMERS.
E.g.: Yearly controls/inspections along the food chain
Italy (agro-foods)
60.441
- meat products
42.172
- cheeses
9.171
- fruit and vegetables
3.969
- other products
2.951
- fresh meat
2.178
Source: AICIG; year 2013

26. OPPORTUNITIES FROM CONTROLS: ADDED VALUE FOR CONSUMERS.
Number of laboratory analysis:
75.887
- meat products
33.787
- cheeses
7.237
- fruits and vegetables
3.485
- other products
30.980
- fresh meat
1.377
Source: AICIG.

27. NEW OPPORTUNITIES FROM PROTECTION.
Parmesan
Feta

28. 3. GENERATING A PRICE PREMIUM AND EXPORT OPPORTUNITIES.

29. GENERATING A PRICE PREMIUM for local producers and communities
THROUGH GIs.
Collective approach
« Sui generis » protection
Value added
for local producers and communities
Sustainability
Promotion

30. OPPORTUNITIES FOR A PRICE PREMIUM.
«Genius Loci»
unique values
USP:
Unique Selling Proposition

31. GIs as OPPORTUNITIES FOR A PRICE PREMIUM.
TRADE MARKETING
ADV
PRESS & PR
WORKSHOPS
MOBILE
EXHIBITIONS
The importance of an integrated approach.
SOCIAL

32. GIs AS OPPORTUNITIES FOR A PRICE PREMIUM .
Average price of Asiago PDO against generic cheeses.

33. GIs AS OPPORTUNITIES FOR EXPORT.Case history 1.
1) MARKET SEGMENTATION
2) LEVERAGED INVESTMENTS
2009/2016:
+63% (volume)
2009/2016:
+80% (turnover)
FOCUS on
KEY MARKETS
CO-PROMOTION
with member
companies
PUBLIC
FUNDS

34. GIs AS OPPORTUNITIES FOR EXPORT.Case history 2.
2009/2016:
+63% (volume)
2009/2016:
+80% (turnover)
Export performance of the Prosecco DOC wine

35. GIs AS OPPORTUNITIES FOR EXPORT.Case history 3.
2009/2016:
+63% (volume)
2009/2016:
+80% (turnover)
Export performance of the Prosecco DOCG wine

36. GIs AS OPPORTUNITIES FOR EXPORT.Case history 4.
2009/2016:
+63% (volume)
2009/2016:
+80% (turnover)
Melinda PDO apple:
Production: 200,037 tons
Members: 4,000
Revenues: 250M €
Export: 55M €

37. GIs AS OPPORTUNITIES FOR EXPORT.Case history 4.
Melinda PDO apple:
all the farmers in the production
area are associated.
average surface: 1,6 hectares
average production: 62 tons/hectare
storage centers: 17
packaging units: 7
employees: 1,300
Consortium
16 cooperatives
4,000 farmers
2009/2016:
+63% (volume)
2009/2016:
+80% (turnover)

38. GIs AS OPPORTUNITIES FOR EXPORT.Case history 4.
1)90M € invested on new units for distribution and packaging, reaching the highest intl quality standards
2) Heavy investments in international promotion on target countries :
25% exported
(yearly average)
2011:
12% exported
Export performance of Melinda PDO apple.

39. GEOGRAPHICAL INDICATIONS ARE... (even for those who are against GIs)
...THAT’S WHY
GEOGRAPHICAL INDICATIONS ARE...
...a great opportunity
(even for those who are against GIs)

40. Thank you.