Ep. 669 Riccardo Pasqua | Get US Market Ready With Italian Wine People

Thanks for tuning into my new show, get US market ready with Italian wine people. I'm Steve Ray, author of the book how to get US market ready. And in my previous podcast, I shared some of the lessons I've learned from thirty years in wine and spirits business helping brands enter and grow in the US market. This series will be dedicated to the personalities who have been working in the Italian wine sector in the US, their experiences, challenges, and personal stories. I'll uncover the roads that they walked shedding light on current trends, business strategies, and their unique brands. This episode is proudly sponsored by Vivino, the world's largest online wine marketplace. The Vivino app makes it easy to choose wine. Enjoy expert team support, door to door deliver and honest wine reviews to help you choose the perfect wine for every occasion. Vivino, download the app on Apple or Android and discover an easier way to choose wine. Hi. This is Steve Ray, and welcome to this week's show. Today, I have as a special guest Ricardo Pasqua, who's one of the leading lights in, the Italian wine industry with the long heritage in the Veneto. Ricardo, thank you for coming on the show. Thank you for having me, and thank you for this wonderful introduction. Pleasure to be ERC. Great. So tell us about yourself and how you got started in the business and kind of how you evolve to your current position now. We're we're later on in the broadcast, we're gonna dig into, the structure of the company in the US, but give us some history on how, how, where you guys were and where you came from. Absolutely. I started, in the white business in two thousand seven, doing a little bit of everything, you know, as, you often happens in a family business. Then in two thousand nine, I started our US venture. It was a good moment for me personally. So I took my wife and a newborn child, and I moved to to America to New York to to start up the the US business. Which back then was literally zero, and today represents one third of our overall, top line. And it's, our, our first market, and the market where we invest the most and where we really see great potential for the future, despite the vigorous growth, that we ex experience until now. So from two thousand nine, when you moved to the US, you had to set up, a new operating company that one one of the challenges that many of the people the producers, anyway, that listen to this show, have is, gee, how do I come to the US market? What kind of a structure do I have? How do I support it when it's not generating any real volume or, revenue or, or certainly profits? How did you guys, address and, and, resolve? So, yeah, I mean, it it was, it was quite difficult to meaning that, of course, going, moving to another country It's always a good idea because you're closer to the culture, you're closer to to their tone of voice. But, you know, United States is a very competitive and it's very big fifty states to cover. And as you know, by law, you're gonna be present with a distributor in each one of them. So, I needed help and, and I found, in in a very good friend, Rich Skalfo, my mentor. So we we decided to to work together back in two thousand ten, and, and, basically, sharing some, some costs, in order to build our, our team across the country, that that was a hybrid team, meaning uh-uh, half direct and half brokers. So it was very lean and, and therefore, easier to to approach in terms of, coast, of course. So so that was a real game changer for me. Rich became, again, my mentor. I learned so much from him. And he he is a guy that has a huge experience in the market and he opened up a lot of doors for for for me and for my company. And of course, back then, Rich was in charge of a new work portfolio and Passqua was a great fit because it was completing the portfolio. And, and so the synergies between the two companies were were perfect. And in few years, we we opened up a forty seven out of fifty states. Now Rich at the time was with, it's the list. Carolina Wine Brand's USA, in fact, for, he and I go back thirty five years back to Hublin, which was a predecessor company to Diageo, and I've always felt he was a mentor of mine. So enough about how wonderful Ritchie Skulfo is. So now you've expanded the brand to forty seven states. I think you guys also did a very good job of establishing in America a not only the brand presence of Pasco itself, but also Velicella and Ameroni and Repasso and those types of ones. Not that you were the only one doing this, but, kind of renewed credibility, visibility, and interest in the part of the US. Would you agree with that? Well, I mean, I I thank you for for that statement. We we we like to think that we are ambassador of our community and territory, indeed. We we we really believe we deeply believe in the potential of our red blends, which, you know, in United States, have a still a huge potential for for growth and and for growth also in the knowledge of the people. Now not many people know really that he passed on a maroona or better, less than we than we think. So so, yeah, I mean, we we really addressed the towards those lines, our message. And, yeah, it worked pretty well. And, and, yeah, I I I like to think we contributed, as well, to building the name of Vopoicel and Vopoicel La Valle in the United States. So you had mentioned that the US is about fourth of of your volume. Can you give us a sense of what your your total production or or sales are? Globly as well as in the US? Of course. So the output, in number of bottles, for the overall business, is around twelve million bottles. So it's one million case. I know US you speak, in cases. Nine liter, it's important to reinforce. Yeah. Yeah. Yeah. And, so, yeah, US represents, one third of the overall business, which is, as you as you can imagine, has been a huge, driver of growth over the past ten years for our organization. So in addition to the distribution that you are able to achieve during the growth period with Carolina Wine brands, you are also very creative whether it was you when I say you, I mean, Pascoa, it's the company in contemporizing the brand, in particular for anyone who's been in verona, They know that that's where Juliet's balcony is. And of course, that's not really Juliet's balcony because it was based on a fictional play, yet it's still a place that attracts flocks of tourists, huge numbers of tourists, and One of the things that's unique about that for anyone who's been there, you know this. There's a wall. This is on both sides that people are encouraged to draw on, and it's been drawn over and over and over. Tell us how you kind of linked that idea to your label. Yeah. So, I mean, we we we were, growing back then. It was two thousand and thirteen. But, you know, I I felt the need to have a a series of, of products of wines that, stand out, you know, that are not comparable to everybody else that, that try to bring to the table a little more, and a little more, creativity and, and, and, value added. So I needed to have something that I bring to the American restaurants and very quickly catch their attention and and therefore very quickly have placement. So, you know, we we used to have that line since, a number of years, a past cement. It is a red blend, IGT, made with the same technique of the maroon, and with a very traditional label. You know, I was explaining how it was made, the the drying method, beautiful, but, you know, it was, it wasn't enough. I needed an idea, unforgettable, easy to remember, easy to to communicate. And, and I was thinking, what is the most important and famous thing from my city, Robin and Juliet, even if he's a fictional, as you mentioned, it it definitely was, what brought verona in the map in the world. So how can I communicate that, in a cool way, in a in a in a urban way, in a millennial way, trying to speak the language of the new consumer? So I went visit the the house, which is downtown verona, but believe it's or not I never visited many times in my life. And when I saw the wall, I said, that's it. You know, that's that looks like a piece of modern art. And with the eye of, professional, cool photographer, we can really make something special. So I hired this photographer. He made this picture and, and we tried on the bottle and was perfect because, again, it was looking like a piece of Jackson Pollock, a piece of modern art, very colorful, very expected for Italian wine, very unexpected for Italian wine of this tradition. So, you know, I I imagine a special edition, a one off, but when I presented it to the to the to the decision makers. It was, an incredible success. And, from there, really started, probably the first blockbuster of of our production. Romeo and Julian now is a franchise distributed in over seventy countries. And so it was, it was amazing. You know, America inspired me to to make this, this wine, and, and today's the most sold label from our house? Well, it certainly bent a lot of the rules that are out there in terms of it being an IGT and, kind of a blend with some association with the other Veneto production methods, bassamento. Yet it really is resonating with people as a brand. So, you know, one of the big things that we know that's kinda driving the US market is this sense of discovery. There's this plethora of places people can go to these days to find information on these brands. And there's a story behind this. The story about Romeo and Veron and all that to discover. I think that it was actually absolutely brilliant and it really, really resonated with consumers. One of the things that, I was always, excited about this brand. We were at, Van Italy probably four, maybe five years ago now. And you guys held a party in that the area where the balcony is, and there's adjacent building with, maybe two stories tall, and we were up there. And you had some players come and do the balcony scene from Romeo and Juliet right there at Romeo and Juliet's thing. I've since changed cell phones. So I lost the recording, but it was absolutely one of the most beautiful evenings I've had, the moon rising up over Verona were there with, in with Van Italy and all these people and kinda reinforcing that plan. So how do you take that magic moment, if you will, and make it resonate with consumers. What kinds of things are you doing with this younger audience in terms of social media marketing, become whatever the, what are the initiatives you're pursuing to build on this success you've had. Well, you know, from from that experience, as I said, the the Romeo and Juliet and everything that, was built around was the first milestone to a series of new products and activations and and also to a new way we communicate to to to the world. And, you know, I'm proud to say that, we are we were among the first wineries to approach the social media world with an angle that has been used before only by the fashion industry, the design industry. So we were the first, to start using the help of, the so called, bloggers, influencers, and all of those, actors that back then were unconventional and there was a lot of skepticism around them as well, but there were a strong link between the the the the products and the millennials. So by doing that, we really shortcut the the message to the target consumers we we have in our mind, we we charge the millennials. So all the products we generated, scenes from you and Juliet have have that kind of angle. And, and back then, there was two thousand fifteen. We were one of the first wineries to invest on Instagram. You know, back then, Instagram, especially in Europe, was, was very small. But we thought, and honestly, I saw what was happening in United States where Facebook or was more becoming a tool for information. A Instagram was more really the everyday kind of lifestyle tool. We decided to put all our efforts towards Instagram and And then, again, the history speaks by itself because Instagram replaced, basically, or in in in big part, we replaced Facebook, and, and we were pioneer and, and, we, built our following via a series of events, which the Romeo and Juliet that you were mentioning was the the really first one, always inspirational, always lifestyle events. So we're, we're invited not only decision makers and and influential people of wine industry, but also journalists and bloggers and influencers in the lifestyle, in in the in the travel, in the in the food business, in the in the fashion business. So he he brought the message of wine making more democratic and towards a wider audience. And that I think it was our our secret of success. If you might call it like that in in in the social media, which today I'm proud to say brings us to be the leader in Italy on on the Instagram channel. One one hundred and three thousand. And and it's all because, you know, we're talking about steel wine. No. We're not we're not talking about uh-uh champagne or bubbles. So if you if you take a look, there's not many wineries in the world with such following. And, so, yeah, I mean, that was really the the disruption if you may. So using, the approach of the fashion business towards wine was, was the first state, the first milestone in that. And then from there, we developed many other approaches. For example, the the latest one that has been launched in two thousand eighteen, is called the talent never tasted better. It's a communication platform where Pasqua acts as a mentor, to local talents, financing them to achieve a particular project or a particular dream. And we started with with three talents. It was one dancer The only Italian allowed it to Julia School in New York. And there was actually where I got the idea because, the the sister came to me when I was in a convention in Vicenza. And told me I've heard about your American experience. My sister has a similar experience. Can you help me? So I really started from something very casual. Let's say. It was the very first. So we helped there to to pay the tuition very simply and and she she got the the the the diploma a few months ago. Actually, we are celebrating this Thursday. So that was the first thing that was a chef, Diego Rosie from verona as well, and he became probably the most popular one. Became a star in the Italian chef scenario, let's say. And and, and the and from there, we started a series of collaborations. In two thousand nineteen, we signed, an agreement with the Francisco Molinari, Italian golfer, which was, he's the only Italian major champion hero of the ryder cup, the the previous one, not this one that you you wanna very largely and congratulations by the way. And then and then with a series of artists, more than twenty artists that, and this this activation will be culminated conveniently. Special edition twenty twenty one, where we commissioned and finance our artistic installation to celebrate these five years and more than twenty collaborations that will will end this cycle, called the talent expertise better. That was also, as I said, the platform of our communication towards social media as well, ready to launch the next the next chapter, which will be launched in March twenty twenty two, but I cannot say anything about it. Cool. Okay. Well, maybe you'll tell me secretly in in Verona. Also as a reminder to those listening, wine to wine is taking place October sixteenth. I'm sorry. Well, seventeenth through nineteenth in verona. I'm gonna be speaking on e commerce and having some interesting we're gonna be doing some clubhouse interviews and some of the podcast interviews as well. And speaking about e commerce, and that is if you're interested in attending, please do and introduce yourself to me, go to wine, the number two wine dot net, wine to wine dot net. Speaking about e commerce, obviously, COVID has, impacted this dramatically. We've seen tremendous growth and diversification in e commerce options beyond just the third party delivery services like, drizzly and so forth. Where are you guys in e commerce now that you have your your own US marketing operation? Well, we we have, e commerce, let's say, direct e commerce platform, that you can easily connect via our website, which serves only the local markets, so only the domestic Italian market. And which we use as, more as a window rather than real business. As you very well know, it's very difficult to, that a single winery can build, meaningful business only with their own products, you know, because they are limited in in selection. But it's important to be there because it's a great window to communicate and to show your your your silverware, let's call it, you know, your best, of the best. And then we we act, of course, with the, with the major platform. So, indirectly, both in Europe and, and the United States and Asia, where we have, in China, basically the same, project as we did in US. So, plus for China, we have our own subsidiary. Which has a a WeChat channel where we sell, our our wines. And as well in China, we have the team all, the JD dot com, which are the main players on the e commerce side of the business. In US, we go via the the major platforms, and for the moment, that's, the plan. Have you seen any change in either distribution, sales, shipments, or de depletions in the flow of goods now that the internet has been such a critical become such a critical tool because of COVID. Have you seen that in terms of sales? Well, I mean, you know, the the for sure people had the much more time to get informed, to go a little deeper in in the analysis, pre buying. Let's call it. No. So, you know, the the importance of the brand has never been a bigger, meaning, you know, the a good brand, give a comfort to the consumer, and a good brand that is able to communicate, its values without, secrets very openly. It's it's very important, of course. And therefore, yes. I mean, we saw in in the business, more interest in products that, maybe before were were more hand selling and definitely more interest, towards, tracking, backtracking, all the informations regarding, from which vineyard, how the vineyard is cultivated. Is it conventional? Is it organic? So definitely more attention towards, towards that aspects as well. Okay. The last time you and I saw each other was in South Carolina a couple of years ago, and you were showing off your new Rosay. Tell us how that project has worked in the US. Yeah. That that was, another great, great heat amazing project. It's called eleven minutes. First vintage was two thousand sixteen. So, I mean, is very recent, but in our very dynamic recent past, feels like a lot of time ago, but, but, yeah, no, eleven minutes was a pioneer as well, for for some aspects. And I'm referring to the style of the winemaking. Back then, Italian Roset, we're very different. You know, we're very, very different in in style. Definitely deeper in color and and in the face profile. Oh, when you say that you're let me interrupt. Sorry. When you when you say that, are you talking about, Pasco specifically? Or because I I spent some time with the folks, behind Kyreto, which is a traditional Rosay franchise, if you will. I mean, you know, pretty old thing, on the east shore of Lake Garda. How does Pasco fit relative to Cureto? Well, the the the region is exactly the same because eleven minutes is from, in part is from, the Bardolino area is a multi vineyard project. So it's a selection between which is the the very southern tip and Bardolino. It is therefore outside of the Carreto operation and the the Carreto rules, and was definitely launched in a time when the roses in general, Carreto included were very different. So He was very disruptive back then. He was, the the the first Italian rosette with the dead tail collar and that vertical profile, very, very fresh, very, very straight, and, and there was a success. And, and back then, I like to believe, started a process where many affiliations, including quereto, started to do the the their wines in in that style, which definitely was and is more welcomed in very important markets around the world. Starting from the annual sucks on the markets. Okay. We're coming to the end of our time. And when I conclude these, I like to ask my guests what's the big takeaway from the conversation and from this. Of the things that we talked about, is there something that someone listening can put to work immediately. The big takeaway is, in one word, creativity. You know, it Italians are are are great, minds, great artisans, great entrepreneurs. Our creativity is second to nobody. So let's bring it, everywhere in the world proudly, and, let's let's bring our wine, where it deserves to be. I I I would add to that that it's it's building on the core assets that define who you are as a country, as a region, as a city. And, I I think the the Pascua wines really do a great job of that. So congratulations on that. Thank you, Steve. Thank you very much. Well, thank you again for for being a guest. It's always a pleasure. I look forward to seeing you, at wine to wine. I think this will air just before that. So this is Steve Racing. Thank you very much for listening. Come back next week, and we'll have another interesting interview to share with you. Ricardo, thanks again. Thank you. Thank you, Steve. Thank you very much. This is Steve Ray. Thanks again for listening. On behalf of the Italian wine podcast. Hi, everybody. 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