Ep. 1145 Intesa Sanpaolo For The Wine Industry | wine2wine Business Forum 2021

Welcome to the Italian wine podcast. This episode has been brought to you by the wine to wine business forum twenty twenty two. This year, we'll mark the ninth edition of the forum to be held on November seventh and eighth of twenty twenty two in Verona Italy. This year will be an exclusively in person edition. The main theme of the event will be all around wine communication. Tickets are on sale now. So for more information, please visit us at wine to wine dot net. Italian wine podcast, a wine to wine business forum twenty twenty one media partner, is proud to present a series of sessions highlighting the key themes and ideas from the two day event held on October the eighteenth and nineteenth twenty twenty one. This hybrid edition of the business forum was jam packed with the most informed speakers discussing some of the hottest topics in the wine industry today. For more information, please visit wine to wine dot net and tune in every Thursday at two pm central European time for more episodes recorded during this latest edition of wine to wine business forum. Good morning. Good morning to you all. I thank you for your participation to today's session organized by Bank in Tesla San Paulo. My name is Roberto Granetti. I'm the area manager, Vincent San Paulo for the Adry business sector. This sector, this branch has been established to buy this bank April the twelfth of this year as an excellent center for agriculture, one production. We follow the, the area from padua, to Bolzano. And we covered these, areas with branches, offices, and people specialized in the agriculture and wide production fields. Now I introduce today's speaker, mister, simonato, who is, the national responsible person of the Agribusiness Branch. My colleagues from the marketing mister Lukacho, mister Balayai. Mister Semonato is going to give us an overview on the mission of this center for Adri Business with some hints to think about one production field. Our marketing colleagues are going to talk about the financing for this sector with a special focus on financing with the rotachary loans. I give the floor to mister Renzo Semonato. Thank you very much. Good morning. Good morning to you all. Thank you for being here today. I share with you quickly some flights to show you our service for the, food and production field. We have in Italy the corporate structure with the two hundred and fifty million turnover. And we have already some branches for food and wine production, and then we have all the other private, customers gathered in the so called bank of territories. We wanted to consider our past experience with our experts of rural credit, and we wanted to establish a national center for our market share. We have in Italy all over Italy. So we wanted to establish a center dealing with, food and land production only. In other words, we have a manager. We have a credit office, a credit department. So we have eighty five branches and two hundred and twenty four operational points. And then we have also managers who only deal with the the agribusiness, customers So altogether, we have one thousand people for this sector. Our ambition is to be a reference point for the development of this sector, which is very important in data in Italy. Eleven percent of GDP, but if we take into account restaurants, catering, also, this value increases a lot. We want to offer faster product, faster supply chain experts, but we also want to add the hearing and the consultation of our experts because of these points are more and more important for this sector. So this is our mission for the national market in order to bolster this sector. We are in Italy based, bank, and we want to focus more and more in this sector. Right? Now we have eighty eighty five thousand customers in our facility, but we want to work on several aspects. First of all, we provide credit block rates and consultation too. But as for the first point, it is important to fill the gaps for information that companies need in order to have access to financing sustainable financing too. So we focus on the company growth and also on our managers' skills to find the best financing plan considering cash flows. So it is a a very developed financial culture. In addition to that, for Italy, branches are very important indeed. Not only branches for this sector, but also branches for specific companies and suppliers. We already started a project in twenty seventeen named, program It covers more than seven hundred and fifty thousand. I'm sorry. Seven hundred five fifty thousand seven hundred and fifty companies. Out of them, we have several companies dealing with one production We have a manager of the sector which deal with several suppliers who are essential reference point to have additional industrial information to improve our customers' rating. So we are very satisfied with this project, and I think that this is a way for us to enhance our country features in particular for Agribusiness. And as I find you, we want to focus on considering our skills and our history in These banks merges into, but in the past, they had, outstanding internationalization skills. So that's why we are presenting forty please. And, we want to offer these elements to our customers in order to boost exports as well. So our banker wants it to be side by scientists with companies that decided to export. We also work with universities, and this is a key point for the growth. Last but not least, considering our, experience as EME Bank, we can also focus on dimension growth. So it is a a complete package of, services to be put at the disposal of a sector, which is essential for Italy. Now I would like to share with you some, hints to think about Italian wine productions factor since eighteen eighty six, nineteen eighty six, sorry, from the ethanol time on this sector consolidated the large in terms of our quality and the export capability. Capability, despite the drop in volumes, as you can see from this light. We shifted from seventy seven thousand hectoliters to fifty Selling price increased remarkably as you can see from this line. This line gives you a flavor of the evolution. Here, we have a sparkling wines, steel wine, and the comparison is with, France, in the period between two thousand eight twenty eighteen. As you can see, France developed a lot. Thirty percent to sixty percent while, Italy did the same for the top range. So France recovered on the average range for not sparkling wines. So while for sparkling wines, we increased in the low range where we have our significant wines and also in the average range. Not that much in the top range where France plays a key role. So France recovered, not sparkling wine before the average may range. And Italy, did the same for sparkling wines in the average wage. So we should think about this evolution. What about our strengths and weaknesses? For this watch analysis. As for exports, experts increase on the quality production. Diversity is essential too in terms of vineyards, areas, and Italian wines, exports, territories, and cultures too. So to my mind, these are the three PP Lars, so that Italy can be a special competitor. Opportunities includes the increase of the international demand. New trend for young generation under thirty five years of age, new selling challenges, channels as well, e commerce. As for weaknesses, we, have to the difficulty in communicating Italian diversity. As we have already said here, we have to develop our storytelling. Then companies are scattered, and it is difficult to set up a company network. As for threats, we have a French competition because we are present on the same market for the average rate. Climate changes. Genome innovation, Brexit, and custom beauties, and the increase of domestic production in some countries. These are the points that we should work upon last but not least, I would like to show you. I I would like to go backwards with my slides. Thank you. I would like to show you two more slides, which may be interesting. This one, the new distribution channel and its evolution. As you can see, final buyers are in the whole sector for forty two point four percent and this sector has been hit by the recent events. As you can see, this sector has increased. Thanks to e commerce as well. A part of the Oreka sector visit directly on GTO. And that is, an important point that we have to think about, and we have to to do so among companies internally. In conclusion, I would like to share with you the following slide concerning the development criteria to our mind on which we can work. Without any doubt that we have, managerial platforms for the warehouse for the sector quality certification data analysis, which is very important indeed for sales and marketing as well. Sensor robotics. All these issues should be better developed. As for marketing and stand, considering you consumers need in terms of comparison, certification. So we have to work upon online tools, brand websites, multi brand portals and social networks. So these points have to be introduced and controlled. We are totally available with our tools in terms of managers and products in order to follow companies, through this transformation. We can also work on e commerce channels. So for example, we have a portal named the destination Gusto. With the four thousand references points, and it is meant as a new selling channel, a new supermarket for our customers to sell directly. So many new items, a great innovation, a great attention. In our opinion, these are the key points to think about. We are totally available to talk to our customers and to find a solution on each single basis. Now I can refer to my colleague. And now I would like to give the floor to Leonardo Lukachi who will tell us about funding as to the, wine and wine market. And so thank you very much. Our brand is quite active as to the investments in the wine and wine, I mean, wine making companies with a variety of products that are under this name of agricultural enterprise. It's a sort of an agrarian credit that evolves in a variety of uses according to the purposes of the companies themselves. So we start from the improvement of the real estate, and that is a banking product devoted to the construction of wine sellers but also rural buildings or for purchasing, I mean, land, agricultural land and or vineyards. And it has a depreciation plan that can extend up to four, I mean, thirty years And, and so the other product that we have for the, I mean, vineyard and winemaking companies, it's this one. I mean, the so this is for planting new vineyards or remodifying old vineyards, and it lasts over seven years with a pre, depreciation. I mean, that, will you know, in a way, a company, the growth of the plant up until it becomes productive. So it lasts seven years with four years of pre depreciation, and therefore, or amortization, with all guarantees. And then the last one is for, instrumental investments, like, for instance, buying bottling systems or, you know, harvesting machines that in this last seven years. And, for the, you know, it it has two years of pre amortization. And I'm done. And I give the floor to my colleague, Andrea Paniay, So thank you very much, and thank you, Leonardo. What we would like to, introduce now is an innovative product that we launched a few months ago that is supporting and funding those, winemaking companies during the seasoning and, and the aging of all wine products. Just think about all the, the those products that are regulated by strict rules, like the denomination of guaranteed origin. And so we started in the summer two thousand and twenty and that allowed us to actually have a rotational, commitment over, food and agricultural products. These change this law changed, because the law was approved years ago, and it was mostly for, you know, I mean, pork products. And so we were already working on those markets. And as soon as the regulations allowed us, we decided to extend the banking product to the winemaking companies that need help during this stage because sometime wine can age four years according to the denomination of guaranteed origin, regulations. And, so what can we do with this type of banking product. First of all, we can facilitate access to credit because this is a product that this banking product should by its nature should be immobilized in the wine cellar, during a production stage because, you know, the wine has to age before it can be sold. And so the idea is to generate liquidity for these companies during this time when their products cannot be sold at the same time without adapting the company itself because we know that for food and agricultural products, more particularly wine, we need to monitor its aging, and so allowing the winemaker to still have the product in order to monitor that is a the wine is aging properly. But at the same time, the product can generate liquidity or cash during this stage. And therefore, allowing greater act access or easier access to credit for the winemaking companies. But also, we believe that this product is very useful when it comes to the rotational, character of the product itself. So we can replace very easily the product that has been given as a lion to the product itself. And so the and so we need to quickly, you know, if the aging stage ended, and the product is ready to be, traded or sold with this kind of banking product, we can replace the product that is ready to be sold. And then, and then replace it with another, type of wine. That needs to be aged. Without slowing down the production company. I mean, the production activities of the company itself. And so let's see how we actually, organized this system. First of all, we try to be less invasive as possible. I mean, less invasive as possible because we know that the winemaking world is very controlled. The entire the entire wine, wine and wine making, sector is very much controlled. But the world of the denomination of control, denomination of origins and and other sectors are, you know, is used to be controlled by external, bodies. You see here the different control organisms that are coordinated by the Italian ministry of agriculture. And you see, you know, the different stages when the vineyard is, you know, is planted. They grow, you know, the grapes are harvested. And the wine is aged. And so you see, you know, the there are controlled bodies that intervene to make sure that the different rules of production of the, the, I mean, the nomination of controlled origins are implemented. And so before or after the commercialization, they continue controlling the, compliance of the product with, the rules for that wine type. And then you see in red, the swishing red is where we are what where we can be of help. And so we do not, you know, say anything to winemakers during the earlier stages, but we can just help during, the winemaking and the aging, in line with the, other control bodies that are on authorized by these highly ministries. So we are, capable of, you know, supporting another control organism that is supporting the, the winemaker. So or the consortium. Let's say, if there is a win if there is a winemaker that wants to pledge its wine production, It's not going to be interacting with other control bodies, but we are going to, work be working with us And so what can we do? We can also minimize the intervention of the bank thanks to the telepathic registry. So the wine locks, the barrels after the bottles are controls on this, telepathic registry. And as bank, we can constantly control, when the wine that has been pledged to the bank is still correctly preserved in the wine sellers of the, winemaker that offered that product as a pledge as a guarantee for funding. So So we don't want to, disturb winemakers, and we want to interact with the control organism embodies that the winemakers are used to interface with anyway. So we try to minimize, you know, our presence and, and then trying to be as helpful as possible to winemakers. At the same time, we, you know, the other, elements that allow us to have a rotational pledge on wine. Usually, our target is, companies that make, I mean, wines with policy assurance labels And, therefore, we can also have a rotational pledge even for table wines. For instance, wines that do not have to be aged, but our purpose is to support the company's liquidity. But in this case, when it comes to the quality, assurance labeled wine that, you know, wine that have to be aged for at least twelve months. This is a, you know, area where we are most affected. So there are different conditions that have to be complied in order to access this product. One of them is the first of all that the company must have the wine in the company. And, and also, the original idea is, having as a pledge, even, products in bulk why that is not bottled yet, but it's being aged. So we need to make sure that the barrels are in located in the company. At that point, we are we actually get in touch with a controlled body that is going over the for wine production company to make sure that the one is truly there. So also at the chamber of commerce, we actually have the prices of the bulk wine for the control. This denomination of origin, wine for that year. And so it will make sure that is, the price of the wine is included in the chamber of commerce price lists. Well, this is even better because you know, there are transparent prices in the chamber of commerce or reference, and we can definitely, use it. But in case we don't find price lists, we are we have an agreement with the protection consortium, consortia so that they can tell us the prices of the wine that the consumer is pledging, but also the year of the, control designation of, origin. And, and without disturbing the, you know, the producer, the winemaker. And so it's important to have a control organism that has an agreement with a bank, a control organism or body that is going to the, the winemaker's premises, to check what the winemaker has in the wine cellar. And so in those cases where we are going to have one single controlled designation of origin whose control organism hasn't signed agreements with us, we can send a third party that is recognize it acknowledged by the salary ministry to certify the quantities of wine in the company in order to access dissertation or pledge Well, it's important to have an insurance as well. And so the wine has to be insured, with the company. And, And so what we can ensure, you know, against is calamacies that the company is already, insured for. So as a minimum policy, for, you know, atmospheric events, explosions, fire. But in any case, wine sellers are already, you know, wine companies are already insured against all these issues. And also, let's look quickly at other, and other, you know, the other aims and purposes that, for which this, loan can be given. We can support the wine aging We can also consolidate further, I mean, additional and previous debts, banking debts. We can actually, you know, make the payment terms longer and also provide this rotational pledge. Also when it comes to the wine in stock, for instance, we can not only help for the consolidation of previous banking debts and aging wine. But and, you know, with different duration, in we have usually it's one it's eighteen days plus one day, whereas for the aging wine, it's up to six years. Where we have a pre amortization stage where the customer is paying only the interest rates rather than reimbursing the capital and, at first. And then this type of contract can last as long as the aging time of the wine. So as long as the comp the wine is immobilized in the company and it's not generating any cash. And so, you know, we also, you know, and then things change when the product, when the wine can be sold. Also, the credit line can also be used for restructuring previous banking, banking bank loans, up to five years. And then last but not least, beyond the last thing that the counter value of the pledged wine for some quality controlled designation and quality assurance, wines, you know, label wine. Can be, can be up to seventy percent of the fledged product. I would say that the, you know, this is a quick overview of the product And, we can customize, the, payment, with, I don't know, monthly payments, fixed term payments, you know, everything can be discussed with the customer. Thank you. So thank you very much, Andrea, for your very clear presentation on, for this type of loans that is very important for the wine and, I mean, the the winemakers. And so we are here for any questions. This is, we have a short q and a. Please feel free to, ask. And, and, also, if there are no questions, I would like to leave the floor to Mr. Renzo, Italian wine podcast brought to you by mama jumbo shrimp. Unfortunately, we didn't hear the question. So I was asking, the panelists, about how they are approaching the market of consortia and also how consortia are reacting, about your products because, you know, consortia are putting together different winemakers. Thank you for your question. We are definitely approaching consortia. We started from the protection consortia. That are present in areas, that are making, you know, the vines. I mean, wines that have to be aged for a long time. And then we are expanding on the rest of the National Territory as well. So at first, consortia, we're quite happy about our banking product because in some cases, thanks to the previous regulations, like in the dairy product, when they were offered this particular banking product, we're very happy about it. Well, even in the wine making sector, this was welcomed as well. The credit lines are in a way, modified as to standard other credit lines. So we are consolidating our presence on the Italian territory and we are bridging different gaps in, especially in those areas where we did not sign agreements with the consortium. And we are quite, you know, surprised. I mean, pleasantly surprised by the intense corporation because sometimes a chamber of governments is not, you know, pro I mean, publishing the prices. And therefore, we found a great, you know, great, you know, great enthusiasm because they are helping us advertising our products with their members. You were also talking about the dairy product producers. So can we can we use this banking product also for other sectors? Yes. It can. The product is similar. The original regulations are slightly different. The laws regulating it are different, but also in the dairy product world, but also in the hand making companies world. These are food food products. I mean, that have to season. They can access our credit lines similar to the revolving, pledge that I mentioned earlier. We know that many food products have to page and or season. And, they have to reach a certain premium price, especially wines that have to age. The main controlled designation of origin require a certain length of a certain, aging time, but also the heavy banking business requires aging. So that is affecting that. So thank you very much, and I would like to give the floor to miss for a quick conclusion for wrapping up. So thank you very much to everyone and our colleagues. Today, we wanted to share with you three things. First of all, our new facility our new service structure, three products also, a product that allows to be reimbursed over a long time, especially for purchasing land but also the pledge, the revolving pledge that this year, you know, wasn't used very much, because, basically, there were, you know, different banks and a sorry state guarantees and companies, resorted to the back. You know, in the future, people may have to, capitalize on what they have in stock. And so these are banking tools that people should be familiar with. That's why we wanted to share them with you. But there are also types other types of loans, loans that are non non banking loans that are funding that is like the non basket bonds for companies having said that, an important step that we are developing is the internationalization. In fact, in the next four months, we are going to actually organize, meetings for three different sectors. The dairy products wine making pro I mean, the sector and also serial production sector for the US and China. We have, offices on-site and we will have experts from those areas that will speak to Italian companies about how to approach those markets. And there will also be some virtual B2B for the three supply chains and for these same countries. And so that our companies can be advertised and be known to some local importers. So we really want to help. And, you know, enhancing our presence abroad as well. So I would like to wrap it up by saying that the service model that we developed is mainly based on our people and our, you know, staff. In Teza San Paulo is based on its human resources that are growing in terms of, skills, but also in terms of listening to what clock customers really need and therefore come up with the right advice for the right company. And so I believe that this is our main skill. It's our people. That work for us and meet us. So thank you very much, and see you next. We hope you enjoy today's episode brought to you by the wine to wine business forum twenty twenty two. This year, we'll mark the ninth edition of the forum to be held on November seventh and eighth twenty twenty two. In verona Italy. Remember, tickets are on sale now. So for more information, please visit us at wine to wine dot net. Hi, guys. I'm Joy Livingston, and I am the producer of the Italian wine podcast. Thank you for listening. We are the only wine podcast that has been doing a daily show since the pandemic began. This is a labor love and we are committed to bringing you free content every day. Of course, this takes time and effort not to mention the cost of equipment, production, and editing. We would be grateful for your donations, suggestions quests and ideas. For more information on how to get in touch, go to Italian wine podcast dot com.