“Appellation d’Origine Contrôlée concept

Geneva, December 6, 2002

First of all, allow me to extend to you my cordial greetings, also on behalf of the Italian D.O.C. Wine Committee, and my sincere thanks for inviting me to take part in this important meeting, alongside friends whom I hold in high esteem for their prestige and their commitment to the appellations of origin of their country’s wines. I have little to add to what has already been said, and can only express my total agreement with the previous speakers. I shall therefore confine myself to a few thoughts based on the Italian situation, and remain at your disposal to answer any questions you may have. Italy, as we know, was defined “Enotria Tellus” by Greek civilization and, even today, despite the heavy extirpation campaign it has undergone over the last ten years, it is, with almost 800,000 hectares of vines, one of the largest wine-producing countries in Europe and the world.

What’s more, thanks to its geographical position and the variety of its orography, microclimates and autochthonous grape varieties, our country produces an extremely varied range of wines: over 2,000 different types. Although it was only in 1963 that the concept of the A.O.C. (“Appellation d’Origine Contrôlée” in Italian) was introduced and its use regulated, Italy now boasts 326 D.O.C. and 23 D.O.C.G., both belonging to the European category of VQPRD and corresponding to around 35% of the “Italian Vineyard”, to which must be added 117 I.G.T., or Typical Geographical Indications, which occupy 30% of this “vineyard”.

In total, this represents over 60% of the surface area and almost 50% of national production, even if there are differences in the classification of production and the controls to which it is subject. It can therefore be said that Italy is fully committed to the quality certified by the D.O.C., D.O.C.G. and I.G.T. designations. and I.G.T. This commitment has benefited exports, which reached 18 million hectolitres in 2001, making Italy the world’s leading exporter, with over 32% of the world’s total. There’s no denying, then, that over the last thirty-five years, and particularly over the last ten, Italy’s wine heritage has improved in terms of quality and gained in image and prestige, even internationally, thanks above all to the protection of the Appellation d’Origine Contrôlée.

Well aware of all this, in 1992, the Italian Parliament decided to adapt the production and control standards for D.O.C. and I.G.T. wines by enacting a new law, law no. 164/92 – on which I had the honor of collaborating directly – which made them more precise and rigorous, especially as regards the protection of consumers and producers alike. As a result, consumers and producers alike have become more aware of the “quality” and “uniqueness” of Italian wines, an awareness that is borne out by the facts and certified by controls. Factors that are not simply marketing “finds”, but intrinsic contents, rigorously controlled, meeting precise production rules and verified (both chemically and physically, as well as organoleptically), before the wines are delivered for consumption.

So we set out to answer an often-asked question: What do the terms “quality” and “specificity” of a D.O.C. wine mean, and what do they imply? In answering this question objectively and precisely, we realized that we were in fact perfecting a work of promotion and enhancement of D.O.C. wines, by tracing their history, expressing their culture, and explaining the close links that bind them to the territory and to the professionalism of the producers. In fact – as the other speakers reminded us – the A.O.C. concept is virtually identical in almost all European wine-producing countries, and in particular in the Mediterranean countries. The Italian law itself states that the “quality” and “specificity” of a D.O.C. wine depend on three fundamental factors that form what is known as the “quality triangle”:

a) Firstly, the grape variety, i.e. the varietal, and the quantity of production per vine;

b) Secondly, the human factor, i.e. vine-growing methods and wine production and preservation techniques;

c) Thirdly, the climate-soil factor, i.e. the natural environment of the production area.

These are the three factors that are subject to precise regulation, including in Italian legislation on D.O.C. and I.G.T. wines, while the first two – grape variety and human factor (i.e., professionalism and production techniques) – can be transposed and reproduced anywhere in the world, the only one that cannot be transposed or produced elsewhere is the “territory” (the climate-soil factor), which remains exclusive to the D.O.C. wine production area, to which it confers specific and typical characteristics. This is why, under Italian law, protection is always based on the geographical name which, depending on the case, may be accompanied by the indication of other varietal or vinicultural parameters (grape variety names or terms such as Classico, Superiore, Riserva, Passito, Vinsanlo, etc.).

For it is the protection of the geographical name that guarantees consumers that precise rules have been followed in the production of a given wine, and that this wine comes entirely from a well-defined territory. With this framework of certainty in place, producers can invest in improving the quality and image of a wine whose identity can no longer be usurped by anyone, and in which consumers can have complete confidence in the knowledge that this or that bottle will not hold any unpleasant surprises. It’s a choice that Italy’s wine industry has made with a clear conscience, and one from which it is now deriving great satisfaction, encouraging us to continue along this path, particularly in the southern regions of the country which are still lagging behind.

And this, knowing full well that, even in the “global” world, the A.O.C. concept is not part of the heritage of all wine-producing countries. It is deeply rooted only in Europe, where it is regulated by the European Union, albeit with a few differences and derogations as regards oenological practices, and it constitutes a historical heritage in only a few countries. There are still many countries outside the European Union that have never signed up to the Lisbon and Madrid international conventions on the protection of AOCs. and which, alas, continue to usurp names and produce imitations.

Even so, it seems to me that the concept of protecting designations of origin is currently making great strides; so much so that, even in the ongoing discussions on updating the TRIPS agreements within the WTO framework, post-Doha, positive prospects are emerging. In fact, current events in California seem to confirm this. As we know, Californian productions used to refer to European products (Chablis, Burgundy, Sheny, Port, etc.), whereas today’s new productions, the most important in terms of quality, essentially rely on the brand and the grape variety. We are not yet at the stage of Appellation d’Origine Contrôlée, but it could be a first step in this direction. This is the direction in which all winegrowing in countries outside the European Union is heading. The varietal message has thus taken on considerable value at international level, but it is not enough on its own to define a wine’s particularity (its tipicità , as we say in Italian).

The only advantage is that it tells you exactly what’s in a bottle labeled Chardonnay, Cabernet or Sauvignon. But, since different grape varieties grown in different soils and climates produce different wines, it’s impossible to tell a California Cabernet Sauvignon from one made in Chile, Spain, France or Italy. Even if the grape variety is an important message, it’s not enough on its own. On the other hand, the A.O.C. can provide all the answers needed to situate production in its natural environment: the geographical area from which it originates. Indeed, it is a recognized and scientifically proven fact that the influence of the climate and soil of the area of origin is always a distinguishing factor when it comes to identifying a wine, and this is exactly what the most culturally aware and discerning consumers are looking for today. Indeed, we have seen, especially in countries with a more recent winemaking tradition, that many producers have tried to oppose the house “brand” to the A.O.C. concept, i.e. by referring to the “brand”, some producers have thought they could give consumers guarantees about the quality standards and image of their product.

Of course, this criterion is not without interest either. But it immediately showed that it has its limits, since it implies considerable and incessant advertising investment, the results of which are very limited in time. In Italy, in fact, we’ve seen that the “brand” concept alone doesn’t work. For example, ten years ago, we saw that some producers, especially among the most important and prestigious names, who could use a D.O.C., found it more interesting to present themselves on the market, especially outside the European Union, by relying on the “brand” and characterizing their products with it. They soon realized that this choice was costly and offered no certainty for the future, and they realized that, on the contrary, it was more useful and more advantageous for them to go back to betting on productions benefiting from the protection of the “A.O.C.”. background Since the enhancement of the A.O.C. involves the participation of the entire community in the area concerned, since it is not just the heritage of wine producers but a collective heritage, it also enhances the value of the “brand” itself and, possibly, the varietal message understood as a product typology.

In fact, the philosophy of AO.C. philosophy, as conceived in Italy, allows for a perfect integration of all values: soil, climate, grape variety or product typology, and the “brand”, understood in terms of highlighting the history, experience, professionalism and production techniques used by the various companies, but also the healthiness and specificity of the wine, the environment and the rural landscape. This is why AO.C. is the best system for highlighting and promoting typical quality wine production on global markets. Here too, the most important confirmation comes from the United States market, where, under the influence of the “variety” plus “brand” mix that was in vogue just a few years ago, several Italian houses – as I mentioned – have launched their products with fancy names, banking on the “brand” and prestige of their name, and have invested heavily in promotion, achieving excellent results in the process.

Well, if we analyze today what’s left of these great financial efforts, we see that, to consolidate their results, these houses have gone back to favoring the A.O.C., alongside the “brand”, and no longer fancy names or varietals. As we can see, this experience shows that we are now in a new and different phase of wine culture and consumption, one in which even the American consumer is relying less and less on “brand” alone and fancy names. On the other hand, what works and what is increasingly asserted is the security offered by an A.O.C. within which the house “brand” can be better promoted and measured in terms of increasingly high quality, even in relation to other producers of the same A.O.C..O.C. It is therefore the A.O.C. (or D.O.C. and especially D.O.C.G. in Italy) acronym which, in the collective imagination, now symbolizes controlled and certified specificity, and is thus able to provide maximum guarantees, including in terms of food safety and the environment. As a result, it represents genuine “added value”, including in the marketing activities of the various houses, and for wines from the entire production area concerned.

As I’ve already said, the promotion of AOCs in Italy involves the entire production area, with its history, folklore, gastronomy, landscapes and villages, as well as tourism, rural culture and ways of life and work in the countryside, as confirmed by the “Wine Routes” (Strade del Vino in Italian) created by a law passed by our parliament specifically for this purpose. These are all elements that contribute to characterizing the place of production and making it attractive, even to less knowledgeable tourists who wish to associate the taste of a wine with the memory of a landscape, a village, a culinary specialty, a typical restaurant or a place where they spent a pleasant moment. The cultural aspect is therefore of considerable importance in the concept and characterization of a wine’s A.O.C. status. The variety of grape variety adds to the “brand”, giving a given wine the unique character that distinguishes it from others and makes it recognizable.

It’s precisely this “plus” – and with this thought I’m about to conclude – it’s this “added value” represented today in Italy by the acronyms D.O.C., D.O.C.G. and, increasingly, L.G.T., that enables certain productions, which have managed to make the most of it, to take a dominant position on the markets, both in terms of price and demand. and, increasingly, by the L.G.T., which enables certain products, which have managed to take full advantage of it, to take a dominant position on the markets, both in terms of price and product demand. It’s worth remembering that in Italy, the companies that can afford to make major promotional investments on their own are only a minority, compared to a large number of small, even very small, wine companies which, despite their size, play an essential role in guaranteeing the presence of man on the land, especially in areas that would otherwise be left to all sorts of calamities. This is also why the collective commitment of the producers of an entire area to the development of their wines, as enabled by the A.O.C., is a fundamental factor not only for the development but also, and often, for the survival of many small businesses. And, I repeat, in the specific case of Italy, this cannot be overlooked.

Hence also Italy’s fundamental interest in ensuring that D.O.C.s can continue to develop in Europe, and that the principle of reciprocity is increasingly protected worldwide. So I think we need to work as a unit, so that the D.O.C. principle, as conceived in our countries, can become increasingly established throughout the world. As the Chancellor said, there’s a need for wines to be “made rather than made”, and for oenological techniques based on essentially ecological criteria to prevail over those based on quality and authenticity requirements that are always linked to terroir. At the same time, we need to reverse the current trend towards homogenization of vineyards and wines, in order to give greater prominence to indigenous grape varieties and safeguard biodiversity.

As far as wines are concerned, “globalization” can never be identified with the “massification” of production and tastes. Rather, it will be conceived as a way of recognizing and enhancing the typical and specific qualities of each wine on a global scale. To achieve this goal, we will obviously need ongoing negotiations and concrete agreements at World Trade Organization (WTO) level. This may not even be enough, if Europe does not engage in a rigorous and permanent cultural battle aimed at winning over every producer and potential consumer through the A.O.C. (D.O.C.) principle.

This principle will be seen as a fundamental factor in equal competition, which is not based on production costs, but on quality and authenticity linked to the terroir. I believe that the Académie Internationale du Vin can undoubtedly make a valuable contribution in this direction, thanks to its long history and the goals it has set itself, as confirmed today by its Chancellor, Mr. Perrin. Even with the creation, as has been envisaged, of a kind of “Nobel Prize”, to be awarded to a wine producer from a foreign country (in relation to Europe) whose activity is characterized by consistency in the production of quality wines, in compliance with the A.O.C. (D.O.C.) principle, as confirmed today.