Ep. 529 bis Russian Tour | Francesco Pensabene

Welcome to our VINitular Russian tour, a service that will air each day this week only. Episode is dedicated to the events we held at the end of March this year in Moscow and San Petersburg at Bourseveni and in Italy Russia, organized by the and the Italian trade agents powered by the Ministry of Foreign Affairs and into National Corporation. Grab your favorite Italian wine, and we will see you in Russia. If you enjoy listening, please consider donating through Italian wine podcast dot com. Any amount helps cover equipment production and costs. And remember to subscribe and rate our show wherever you're tuning. Oh, first of all, welcome everybody to Italian Mind Podcast. This is actually a special series. Will be going on from the fifteenth of March till the twenty second. And it's all about Russian tour, dedicated to the events being held in March this year. This is will actually be the first year I haven't been in the longest time in Moscow and Saint Petersburg, and it's called Borzavini Vinetuie Russia, organized by, of course, Verona Fierge, and Italian trade agency. So today, with us, we have the trade commissioner. Are you called the director or trade commissioner? Because sometimes you guys are called directors as well. Right? Yeah. Because, actually, I'm the trade commissioner of the talent agency. So this is, the exact working for the Okay. So you are the trade commissioner. Yes. Of I I'm still used to calling it Eche all my life, you know, since I've started about ten years ago. Eche is just the acronym in the Italian language, ita, in English. Okay. Ita is, ita is Italian traditions. That's very good. Okay. Thank you very much. So my first question to you, mister Penzabiner, is how long have you been in Russia? And what can you tell us about your work as a trade commissioner in Moscow, especially during the pandemic of last year? So first of all, Steve, thank you very much indeed. I mean, it's, quite a pleasure talking to you today. Reached Russia more than a year ago. That was in November twenty nineteen. It was previously posted in India, and then I started my new job, my new posting in Russia in November twenty nineteen. And after a few months It's strange. You didn't pick up the Indian accent, though. The Indian accent I mean, I actually pick it up. Yeah. You don't have it. If I speak Indian, then you wouldn't understand anything. No. I'm good. That's great. Because usually people who have some hiatus in India, they pick up the accent. It's amazing. That's true. That's true. I mean, after four weeks in the day, I mean, he was, absolutely an amazing time I spent in India was absolutely fabulous. And, my Indian friends, I mean, they speak Of course, with a own language, with a own dialect, the on accent, which is, absolutely beautiful. I love it. Then as I was saying, in February, March twenty twenty, we unfortunately entered this pandemic era, and, he was no easy at all. I mean, it was difficult for everybody in the world actually. So we had to change our skills, our techniques, so to say in, promoting the so called made in Italy. So now we are almost getting back to normal, which is not complete path, actually, but we are trying to go back to normal. And, in the past year, we have organized, several events, online events, of course, because it was not possible to organize offline events. Of course, we had, a fall in the expotations in the Italian expotations to Russia Russia's delays, and I think will, will be in the, forthcoming years, accruition markets to us. So, in one word, it was a tough time, but I believe we actually we've been able to overcome it. And now, I'm happy that things are going to be, I wouldn't say, you know, if they were because this is not true, actually. Of course, there are so many restrictions. There are so many problems. Still, so many problems, but I believe that we are doing a great job and we are trying to go back to normal. Of course, Italian companies and so Russian companies have had great losses due to this pandemic. So, I mean, speaking about the different ways of, adapting to the pandemic, are there any particular bilateral trade relations between Italy and Russia? At the moment? Oh, yes. I mean, without any doubt Russia is, for us, fundamental market, we are the fifth, supplier to the fifth exporter. To Russia in twenty twenty, we actually lost more than eight point seven percent compared to twenty nineteen, and that was due to the crisis, due to the pandemic, But if you compare Are you speaking specifically about wine? No. No. No. No. No. I'm, I'm No. In general. Of course, I will be, touching upon the expectations regarding wine. Generally speaking, we had a loss. We had minus. Eight point seven percent in twenty twenty compared to twenty nineteen. Right. All areas? Yes. In all areas. Okay. And what about wine? Wine, we are still the first exporter because there was a loss we lost, three percent compared to nineteen, twenty nineteen. So we've been the first supplier or exporter in twenty nineteen with an increase of more than fourteen percent. Compared to twenty eighteen with a market share of twenty nine percent, and, a total volume amounted to more than three hundred million euros of sales in twenty nineteen. In twenty twenty, we've been the first supplier. She is still the first exporter with, more than thirty percent as a market share and, almost three hundred million euros in sales. So We actually lost three percent, but if you consider the enormous crisis, then I believe that in this field, wine, we've been quite resilient. And I think that we still on track. This is a fundamental market in Russia because the market size is about four billion euros. So we're speaking about a huge market when we come to wine. And, Italy plays a fundamental role in this market. Again, as I said, all for the crisis was striking and still striking very hard. Italy is the first exporter without any kind of doubt. White wines, prosecco, and red wines, so to say the Jews of Italian wine in the country. This is a fundamental market to us also because Russians I can consider them the, not just, wine lovers, but I would say that they are really of wine experts. So that is why Russia is for wine and also for other sectors, a strategic market. Adult markets to us. What is the three hundred million? What what is the, in context? Can you contextualize a little bit in terms of the foreign exchange rate recently between the, the Russian ruble and Europe from nineteen and twenty and twenty one. Where is where is it heading? So what you're asking me, I mean, if I have to give you, some specific details regarding this amount, No. No. No. Just just just that was just for me, but, what has happened to the exchange rate between rubles and Europe? Oh, oh, sorry. Sorry. Exchange rate. Sorry. Sorry. Of course. That was, and still is, you know, a key point. Actually, global has been devaluated and, you reached something like ninety two rubbles per euro, which was very, very high. Now we back we are back to eighty five, eighty seven. So in other words, we have had a very strong depreciation of rebels, which theoretically helped Russian expotations tasks, foreign markets. Now, there's a new balance. And, of course, I mean, if you also consider this aspect, and I thank you for, pointing out of this profile, which is very important indeed, And he actually it was not an easy matter for us because with, a devaluation of rebels, expectations from the European markets, they had more difficulties than in the past. And, notwithstanding the Italian wines are being sold in the market, in the Russian market. And as I said, we only, so to say, lost three percent. So getting back to your question, yes, devaluation of bubbles It's been a big problem, above all regarding the energy oil and gas, regarding wine that has not very much struck the wine market. So, mister Pennsylvania, what what are your thoughts with regards to Now we're already in March in twenty twenty one. It's the new year. What what is your forecast in terms of wine business in Russia for two thousand twenty one, especially compared when you compared with, two thousand twenty. Well, frankly speaking, there is too early to say because, first of all, we only have data regarding the first month of the year, which is nothing. It doesn't tell us. Anything. But anyway, my forecast is that, there will be a strong increase for a couple of reasons. First of all, the impact, the strong impact of the new channels. Such as e commerce. Italian companies were not very used to plan to, set them down and marketing strategy through e commerce. Now they actually changed mind And, I think e commerce very much will very much help the market to increase, and, it will help Italian exporters into the market. But the second point is that wine is without any doubt becoming the first beverage in Russia. I don't believe it's true that vodka is the first, alcohol beverage in in the country. I believe that wine is, is becoming it's like anita. I mean, you drink a glass of wine, not just, when you go to, restaurants, when you have dinner, you appreciate wine during the day when you have the so called aperitivo, for example. So you have a glass of wine, a white wine, especially in summertime, but not necessarily in summer. And, this is the habit. That is taking place in Russia. So I believe there will be an increase in terms of trade and in terms of new habits. Okay. Great. Thank you very much. I guess Lastly, what I would like to ask you is if you can tell us a little bit about for Salvini, Vineetli, Russian, Moscow, and Saint Petersburg. Your experience is with regards to any challenges, that you've faced organizations an event like this, especially in during pandemic. You see, Steve? I mean, boss Adini is just, I wouldn't say it's a, a big event. It makes it very important. Thought because, we need to go back to physical offline events. Now, if you take into account that in Moscow, we'll have, eight companies, eight Italian companies represented by local distributors. And in Saint Petersburg, we will have six companies, then you understand that it is not a huge event with a large number of Italian producers. Nevertheless, the signal, the message we are giving out is very important. I mean, we are there physically to present new selections of wine. And, this is a strong message why we decided to be there with Bosaveni. And, for example, I mean, we didn't organize, a bigger event in September or in July or probably soon after the product spot, which is the main trade fair regarding food and wine in Russia. Because, Russia is opening because Russia is struggling in order to go back to normal. Russia, I believe it's ready. To, relaunch its business. I believe we are ready to to face up the new challenges. And, we have to give a signal. We have to give a message that we are there. So fourteen companies is not a huge thing but the quality of these companies is very high. And also, the attendance will be very interesting because, buyers coming from various regions of Russia are coming over to attend. And, this is, again, so to say the certificate, if I can say that that Russian buyers, appreciating, further the Italian wine, Italian wine in this market again, is, a jewel, which is, I appreciate, which is being appreciated even more than in the past. So I'm very happy about this. This is just, a new beginning, a new normal, I would say. But, of course, we will insist on promoting. We will keep on promoting wine in various, in, different sites in different, on different occasions, and products, for example, as I'm saying, the trade fair regarding food in April will be another location and so in the months to come. Well, I look forward to, getting the report from the event through my colleague. Actually, my colleague, Eleanor, will be traveling to Moscow. So you'll need her because she has a Russian passport. And, you know, we really look forward to forging ahead in other occasions. And hopefully, you know, I'll get a chance to meet you very, very soon. Thank you so much for your passion and your commitment. And, more importantly, support for the Italian wine producers. Thank you very much. We speak that I thank you very much indeed. And, really, I look forward to welcoming you in Russia. Please come over to visit this beautiful country unless you know it already. Yeah. You know, I I don't know. On a personal note, I don't know if you know. My first daughter, she is Russian because I adopted a Russian girl when she was very small. And so I have a very special there's a special place in my heart for Russia. Right. Right. And if I can conclude with, with just one sentence, please let me say when you say wine, you speak Italian. Oh, exactly. Okay. Listen to the Italian wine podcast. Wherever you ear podcasts. We're on SoundCloud, Apple Podcasts, HimalIFM, and more. Don't forget to subscribe and rate the show. If you enjoy listening, please consider donating through Italian wine podcast dot com. Any amount helps cover equipment, production, and publication costs. Until next time. Chichi.