Food and beverage to Italy

(Last updated: 23 May 2008)

Trends and opportunities

The market

Italians as a whole are interested in high-quality, fresh, and traditional foods. As an agri-food and seafood importer, Italians are second only to the Portuguese for per capita expenditure on food products.

August is the peak month for demand, with the greatest diversity of products on sale. Although, a reduction of purchases is due to the unjustified increase of prices, particularly in the retail distribution.

In the grocery sector, supermarkets have a market share of 43.6 per cent, while hypermarkets have a 14.3 per cent share. The average expenditure per customer is $88.67 in hypermarkets and $48.05 in supermarkets, with families usually shopping once a week.

With the BSE crisis, and outbreaks of foot and mouth disease, there has been an increase in demand for alternative meats (in particular ostrich and emu), however, Italians are still some what sceptical about kangaroo meat. Australia still has limited export quotas on these products to the European Union (Italy included), and consequently exports are unable to keep up with the local growing demand. Italy has also recently banned imports of transgenic agricultural products, and as a result, biological and organic products are selling very well, despite their higher cost.

Wine consumption is overall decreasing. Statistics have shown a decrease of 4.1 per cent in total volume for still red wine, a minus seven per cent in total volume for still white wine, and a -9.8 per cent in total volume for still rose wine. Sparkling wine and non-grape wine have registered respectively an increase of 4.7 per cent and 2.6 per cent in total volume. 

Mineral water (still or sparkling) tends to be the most popular non-alcoholic beverage during meals. Mineral water production is mainly for domestic consumption. A new market is emerging for imported top quality mineral water, especially in the major cities.

In Italy e-commerce is currently lagging behind the rest of Europe, and this applies equally to the food and beverages sector. Websites selling food, beverages and general products are increasing, with Meteora S.p.A one of the most popular online marketplaces. However, Italians prefer to shop in person and Italian consumers are often reluctant to provide credit card details to online suppliers. Providing buyers with alternative forms of payment may increase reliability and trust.

Opportunities

Australian fruit and vegetables exporters have excellent opportunities for supplying Italy in the off-season. The best opportunities for Australian suppliers are in:

• Alternative meat varieties
• Cereals
• Fruit and vegetables, both for fresh consumption and for industrial use (puree, juices, etc)
• Gourmet foods and snacks (sweet and savoury)
• Organic and natural foods
• Seafood

Tariffs, regulations and customs

Italy applies customs duties to all imported products. Rates can vary considerably, depending on whether the imported product is bulk unprocessed or ready for consumption in retail packages.

Value Added Tax (IVA), must be added to the cost, insurance and freight (CIF) value of the import. The most common rate is 20 per cent, but a reduced rate of four per cent applies to essential items.

As a member of the European Union (EU), Italy complies with European import regulations, but there are several bilateral agreements with third countries. It is advisable to check each situation on a case-by-case basis. For example, unlike other EU member countries, Italy does not allow emu meat imports from Australia. The EU applies quotas on cheese and meat products from non-EU suppliers and these are allocated at the beginning of each year.

Industry standards

The Italian Government does not require ISO 9000 (quality) certification from local manufacturers but GMO and UNI 10939 certifications are required. The certification is a plus, which most companies tend to obtain to enhance their credibility, safety and competitiveness on the market. This concept is spreading through most European Union countries.

On April 18, 2004 strict rules on GM labelling entered into force in Europe, extending the mandatory labelling to countless food products in the supermarkets. Under the new rules, all foods that contain or consist of GMOs, or are produced from GMOs will have to be labelled regardless of the presence of GM material in the final product.

Labels must be written in Italian and contain the list of all ingredients contained in the product and the expiry date of the product. Other particular features may be required for particular ingredients. This specific data can be sourced from local Veterinary and Sanitary Offices of Linate Airport.

Some domestic products, especially typical varieties of wine, cheese, ham and vegetables are protected by a series of local quality labels (DOC, DOP, DOCG, IGP). Therefore, it might be particularly difficult for similar imported goods to enter the market, however, there could be interesting niche markets for top-quality imports.

Italian names or labels on your products should be avoided, as these can create problems in the Italian market.

Contact details:

Sanitary and Veterinary Office (for food and beverages of animal origin)
Tel: (39 02) 733 505
Fax: (39 02) 7611 1385

Marketing your products and services

Market entry

Australian exporters should always operate through importers as the first step into the Italian market. The importer will then sell the product to either the supermarket chains directly or to regional wholesalers. Always highlight any plus points or special features (such as the ‘pure environment’ from which the product originates) of the product to be exported to Italy.

Food and beverage products are largely sold and distributed by supermarket chains. Only a limited number of customers, especially the elderly or those living in small towns, prefer small shops and traditional stores. There is also an increasing number of high quality gourmet-shops selling niche gourmet foods.

Italy’s largest supermarket chains are:

• Esselunga (mainly operating in north western Italy)
• Coop (north eastern and central Italy)
• GS (northern and central Italy)
• Conad.
• France’s Auchan has also made a recent successful entry on to the market

Television commercials and newspaper ads are generally the most effective channels for marketing new products, and billboards can also be effective.

Sport events enjoy a wide audience (especially soccer, basketball, car racing and cycling) and can be a good way to promote brand names.

Offering free samples in supermarket tasting stalls is also a common strategy, in particular for coffee, confectionery products and cold cuts.

Packaging must be environmentally compatible and if possible recyclable. Italian consumers are very discerning when it comes to product packaging and presentation, so you should:

• Develop effective and innovative packaging (this is critical).
• Have smaller food portions for singles and seniors.
• Ensure packaging is easy to open and easy to re-seal.
• Emphasise that products are low-cal or ‘lean’ on labels as Italians are becoming more health conscious.

Often working with an Italian specialist is the best way to develop effective packaging and branding. Your distributor should be able to help.

Distribution channels

Most retailers do not buy directly from overseas suppliers, so you will need to operate through a local importer or distributor. There are vast numbers of companies importing food products from all over the world, many specialising in specific products or customers. Food and beverages can be sold in Italy through different channels:

• Australian exporter to importer to wholesaler to retailer
• Australian exporter to agent to retailer
• Australian exporter to importer or agent to supermarket chain

Links and industry contacts

Food and beverage–related resources

Agribiz - www.agribiz.com/agInfo/searchbz.html
International Food Exhibition - www.expocts.it/eng/food.asp
Meteora SpA - www.meteoraspa.com

Unione Italiana Vini – www.uiv.it
Via S.Vittore al Teatro, 3 – 20123 Milano
Tel. 02/801595 Fax. 02 /866226

FEDERALIMENTARE – www.federalimentare.it
Via Pasteur, 10–00144 Roma 
Tel: 06 590 3534 
Fax: 06 590 3342

AIIPA – www.aiipa.it
C.so P.ta Nuova, 34 – 20121 Milano
Tel: 02 654 184 
Fax: 02 654 822

FEDERGROSSISTI– www.federgrossisti.it
Via Properzio, 5 – 10093 Roma
Tel: 06/68891371
Fax:02/68890476

ANIPO – Associazione Nazionale Importatori Prodotti Ortofrutticoli
Largo brindisi, 5 – 00182 Roma 
Tel: 06/7726401
Fax. 06/7004428

ASS.I.C.A. – www.assica.it
Strada 4, Pal. Q8
Milanofiori 20089 Rozzano (MI)
Tel. 02/57510257 Fax. 02/57510607

Viale Pasteur, 10 – 00144 Roma 
Tel: 06/5915041 
Fax. 02/ 5915044

FEDERPESCA
C.so d’Italia, 92 – 00198 Roma 
Tel: 06/8554198 
Fax: 06/85352992

ASSOCARNI
C.so Italia, 92 – 00198 Roma
Tel: 06/8541085 
Fax. 06/8419544

Unione Nazionale dell'Avicoltura – www.unionenazionaleavicoltura.it
Via Vibio Mariano, 58 – 00189 Roma 
Tel: 06 3325 4015 
Fax: 06 3325 2427

ASSOLATTE – www.assolatte.it
C.so di P.ta Romana, 2–20122 Milano 
Tel: 02 7202 1817 
Fax: 02 7202 1838

ASSOUOVA
Via Mazzini, 15–20123 Milano 
Tel: 02 8646 3628 
Fax: 02 876 680

Mercati Alimentari all’Ingrosso di Milano
Via Lombroso, 54–20137 Milano 
Tel: 02 550 051 
Fax: 02 5500 5502

FEDERVINI – www.federvini.it
Via Mentana, 2/b–00185 Roma 
Tel: 06 494 1630
Fax: 06 494 1566

ASSOBIRRA – www.assobirra.it
Via Val Fiorita, 90–00144 Roma
Tel: 06 543 9321 
Fax: 06 591 2910

Associazione Industrie Dolciarie Italiane
Via B.Oriani, 92–00197 Roma
Tel: 06 807 5735
Fax: 06 807 3186

Mineracqua
Via delle Tre Madonne
12–00197 Roma 
Tel: 06 807 9950 
Fax: 06 807 9946

Government, business and trade resources for Italy

European Union - www.europa.eu.int
Italian Chamber of Commerce and Industry in Australia - www.icciaus.com.au
ItalTrade - www.italtrade.com/countries/oceania/australia/index.htm
Transports.it - www.abc-transportsweb.net/default_ing.htm