2. The view of the Companies and Consortia Balsamic Vinegar of Modena PGI
The meaning of the
GI System
The view of the Companies and Consortia
The case of
Balsamic Vinegar of Modena PGI

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

4. Should introduce some limitations to companies and industries
The G.I. System
Should introduce some limitations to companies and industries
Instead….

5. The G.I. System
There are several examples of how the companies based their success into this regulated market

6. Balsamic Vinegar of Modena & the Consortium
One successful example:
Balsamic Vinegar of Modena & the Consortium

7. What is Balsamic Vinegar of Modena?
Balsamic Vinegar of Modena is a very special vinegar, which has its roots in the ancient Roman times.
It is obtained by must (grape juice), instead of wine.
Must is reduced by cooking, to get concentrated must, a very dense, syrupy liquid.
Concentrated must is then fermented and aged in wooden barrels.
ACCORDING TO DIFFERENT RECIPES, 3 DIFFERENT BALSAMICS ORIGINATED IN THE HISTORY :

8. History of Balsamic Vinegar of Modena
Reggio Emilia
Middle Age
Secret family recipes
1300
“Modenese” Vinegar, or Duke’s Vinegar
Obtained from the natural fermentation of cooked must, also called
Sapa or Saba
1700
Its ‘Balsamic’ name derived from presumed medical and healthy properties
Recipe of
Giusti
Recipe of Lawyer
Agazzotti
Grape must+
Aged vinegar+
Strong wine vinegar
Cooked Must +
ageing
Balsamic Vinegar of Modena
Traditional Balsamic Vinegar of Modena
Traditional Balsamic Vinegar of Reggio Emilia

9. Traditional Balsamic Vinegar of Modena
Cooking
Grapes
Grape Must
Traditional Balsamic
Vinegar of Modena
PDO
Traditional Balsamic
Vinegar
of Reggio Emilia PDO

10. Traditional Balsamic Vinegar of Modena
Barrels are kept in attics.
Fermentation is slow in winter (cold), fast in summer (hot), and it causes a natural concentration of product by evaporation.
Every year, the content of each barrel is moved into another, smaller barrel made of a different wood.

11. Traditional Balsamic Vinegar of Modena
After a minimum of 12 YEARS in barrels, the result is a very thick vinegar, rich and complex from the aging in different woods.
A control is run by a Consortium, after their approval it can be bottled in a unique 100ml bottle.
This product is called by law TRADITIONAL Balsamic Vinegar of Modena.

12. Balsamic Vinegar of Modena: the development of a commercial product
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 with some strong wine vinegar (old documents, Count Gallesio)
A new product was started: it was called
Balsamic Vinegar of Modena
Today, Balsamic Vinegar of Modena is the product commonly available on the markets of a very large number of Countries.

13. Balsamic Vinegar of Modena
Grape Must
Grapes
Winemaking
Concentration
Vinegar Making
Cooking
Fermentation and
ageing
Aceto Balsamico di Modena

14. Commercial Development
Initially limited to local market, and self-consumption.
Modenese entrepreneurial attitude,participation to fairs already in 1861 (Firenze, Giusti company)
First exports were documented already in 1890
After 1965 impulse to sales, international development
Increased consumption in Restaurants, followed by specialty shops, supermarkets.

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

16. Balsamic Vinegar of Modena U.S. Market shares…
Sales are soft for White vinegar, the largest segment, while Balsamic continues to grow, and
With Balsamic’s growth, it continues to gain share from 13% of sales in 1997 to 15% in 1999.
(source: The U.S. Vinegar Institute, 2001)

17. Balsamic Vinegar of Modena German market
Analyse - Relevanter Markt und Marktpotential
Absatz in Mio. l
Umsatz in Mio. DM  
Gesamtmarkt
Balsamessig
Kräuteressig
Apfelessig
Obstessig
Restliche
58,092
159,579
- 4,0
- 2,0  
4,247
40,483
+ 25,0
+ 26,0  
8,548
22,989
- 8,0
- 8,0  
4,294
13,230
- 4,0
- 20,0  
4,423
11,485
Quelle: A. C. Nielsen 2000, LEH ohne Aldi
- 20,0
- 25,0  
36,580
71,392
- 2,0
- 4,0

18. Manufacturing increase: consumption of cooked/conc. must

19. Producers (Vinegar houses)
Data
Operators
250
Producers (Vinegar houses) 82
Total Volume
litres
Bottled Volume
litres
Turnover €
Export on volume
92 %
Medium price per litre
IGP 4 €/l
IGP aged 40 €/l
Work personnel
600
Employees
300

20. Roots and branches
The ‘filiera’ of Balsamic Vinegar of Modena includes 107 winecellars, 52 must concentrators, 72 vinegar plants and 157 bottlers.
92% of the production is exported: today the product is sold in 120 different countries and is among the main ambassadors for Italian agri-food excellence in the world.

21. Market
The production turnover of Balsamic Vinegar of Modena is over 500 million euros, and the sales turnover is 700 million euros. These figures place the product among the top ten Italian PDO and PGI food specialties, alongside Grana Padano, Parmigiano Reggiano, Parma Ham, San Daniele Ham and Gorgonzola.

22. Legislative recognition
Regulation 4.1
Legislative recognition
On March 25, 1933 the Minister of Agriculture Giacomo Acerbo acknowledged for the first time, with an official act, the “age-long and characteristic industry of the Balsamic Vinegar in the Modena area”.
In 1965, specifications were published in the Gazzetta Ufficiale (Official Gazette) relating to the “Composition characteristics and preparation modalities of the Balsamic Vinegar of Modena”.

23. Regulation 4.2 Seal of the EU
The latest milestone in the history of this exclusive and distinctive product, which has become world ambassador for fine Italian eating, was European recognition: in 2009, after a long procedure, the European Commission inserted Aceto Balsamico di Modena designation in the register of PGI productions.

24. Regulation 4.3 Always on the look out
Aceto Balsamico di Modena, due to its worldwide success, is one of the most imitated specialties but the recent judgements 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 the Consortium and its members.

25. Consortium 5.1 In the beginning
The first Consorzio Tutela Aceto Balsamico di Modena was born in 1993 and the following year the producers took steps to improve the production specifications and to protect the correct use of the Balsamic Vinegar of Modena designation in trade and consumption. The Consortium filed the first request for Protected Geographical Indication.

26. Consortium 5.2
Bumpy ride
The path towards recognition was more difficult than expected. There were strong opposing forces from other European states and within Italy also; the producers split into different groups, compromising their work and their weight.
It took 15 years (!) to complete the procedure and finally see the announcement of the PGI Aceto Balsamico di Modena in the Commission Regulation 583 of 2009.

27. Consortium 5.3 The Consortium
In 2013 the producers agreed to rebuild the Consortium, and in 2014 the Italian Ministry bestow the tasks of promotion and protection for the PGI on the renewed Consorzio Tutela Aceto Balsamico di Modena

28. Consortium 5.4
Now
The Consorzio Tutela Aceto Balsamico di Modena represents over 98% of the 97,5 million litres produced in 2014.
There are 51 associated companies: among them are some of the historic brand names in the field that since the beginning of the 20th century have been contributing to the product’s success both in Italy and on the international markets.

29. Inside
the Consortium

30. What
The Consorzio Tutela Aceto Balsamico di Modena (Consortium for protection of Balsamic Vinegar of Modena) carries out two public functions, in cooperation with MIPAAF – Ministry of Agricultural, Food and Forestry Policies:
Protection;
Promotion.

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

32. Control and certification
What
Control and certification
For the verification of compliance with product specifications, the Consortium collaborates with an independent authorized control body. The current body, commissioned directly by the Italian Ministry, is CSQA Certificazioni.

33. What
Promotion
The task of the Consorzio Tutela Aceto Balsamico di Modena is also to promote knowledge of Balsamic Vinegar of Modena and disseminate its culture, communicating directly both with final consumers and with the media.

34. What
Even further
To the same basics ends of promotion and protection, particularly on the more remote markets, The Consortium is part of national and international organizations such as AICIG - Italian Association of Geographical Indication - and OriGIn - Organization for an International Geographical Indications Network. We are also strongly supporting the activities of QUALIVITA in the promotion area.

35. Why Authoritative voice
The Consorzio Tutela Aceto Balsamico di Modena is a body that fulfills the essential role of giving a voice to small and large producers in the face of institutions (whether they be local, national or foreign).
Through the Consortium, therefore, its associates achieve representation and obtain guarantees of regulatory protection.

36. Advantages and services
Why
Advantages and services
Only the products of associates are entitled to bear the consortium logo, connected with the PGI designation.
In addition, consortium members can avail themselves of a range of services that include information, training, and technical and legal consultation; and it is to members that the Consortium passes the numerous requests for visits to Vinegar Plants and the offers for promotion and participation to events that it receives daily.

37. Membership of the Consortium
How
Membership of the Consortium
Membership is not compulsory.
The companies interested in joining the Consortium must already be registered in the inspection plan run by CSQA Certificazioni.
An annual fixed fee is requested from any members, plus a variable fee based on the volumes produced by the company the year before.