CMO wine promotion is a strategic, but complicated measure, especially for small companies

Italian wine exports have doubled over the past 13 years, increasing from 3.9 billion euros in 2010 to 7.7 billion euros in 2024, according to ISTAT data. The merit belongs to the work of the many companies that have brought Italian wines to the forefront around the world, and made them known everywhere. It is also thanks to the CMO Wine funds, which were first applied in 2010 and now are a confirmed and formidable tool, in support of wine companies and Consortiums, for 100 million euros in European funds allocated per year (that co-finance up to maximum 50% of wine companies’ projects, ed.). Thirty percent of the funds are managed at the National level and 70% by the individual Regions. Italy has managed to publish calls for bids and rankings within the “regular” time allowed (compared to the often scandalous delays registered over the past few years), an aspect that the Ministry of Agriculture proudly announced recently, and that representatives of the supply chain, from Unione Italiana Vini (UIV) to Federvini, welcomed quite favorably. Many other steps forward have been taken as well, over the years, by the administrations, such as publication of calls for bids, and companies presenting more and more precise, feasible and sustainable projects.
However, there are still some critical issues, or rather, rigidity in interpreting and applying the rules, which are, of course, fundamental - since we are talking about managing public funds, and it is equally important that competition to obtain the funds be played adopting precise parameters - in the presentation phase, but most of all in implementing and furnishing a report of the project, due to the bureaucracy involved. Therefore, if the large companies or the more modern ones that have a greater propensity for investments are able to manage, the mediumsmall wineries that have a less structured management, are in greater difficulty, and paradoxically are starting to be less convinced and interested in the instrument. It becomes obvious when scrolling through the rankings and decrees - not so much at the National level that historically involves the largest and most advanced wineries and business groups where the use of resources is always almost total - of some Regions, leaders on the wine scene, where part of the resources for promotion are not used or not requested - as Silvana Ballotta, head of Business Strategies, confirmed to WineNews. Business Strategies is a firm that works towards the Internationalization of companies, which for 20 years has followed the CMO Measure path, carrying out important projects for some of the most famous and leading Italian wine companies.
“Finally, the time allowed for releasing calls for bids and publication of rankings is now what it should be by default, and obviously this is a good thing. Plus, people are fully aware that the measure for promotion of CMO Wine is a strong tool to support Internationalization and to bring wine to third countries. By analyzing the two levels, National and Regional, however, since I have been working on this measure for many years”, Ballotta explained, “I can confirm that we are starting to see a decrease in the use of resources, even in leading Regions where the measure can be well managed, such as Veneto and Sicily, for instance, which have residual funds that have not been requested, and therefore not used. The problem is that submitting applications is becoming more and more complicated and bureaucracy is stricter, even in implementing and reporting phases of projects. This would not be the direct responsibility of the Ministry of Agriculture, but rather the agricultural payments agency, AGEA. Therefore, it is a sign that if the larger wineries focus on National bids, and are able to manage things, the numerous less structured medium-small businesses are starting to move away from this tool. Sometimes they don't even try to submit projects and applications anymore. The system needs to reflect on and take this issue into consideration because promotional support is an important tool and must be accessible to a wide audience, not just to those who are large investors”.
Silvana Ballotta explained that the biggest bureaucratic problems come from the fact that the market and its scenarios are changing much more quickly than before. Since CMO Wine is a market measure, it requires greater flexibility and a prompt response from public administrations, which instead is often lacking. “If, for instance, I need to request a variation on a project because that specific action is no longer viable, and changes must be made, (of course, within the rules defined by the various decrees), it is not conceivable to have to wait more than 60 days for a response. The companies need to be able to move in a much faster time, to not miss opportunities or waste resources”. The topic that caused heated discussions two campaigns ago for instance, was the unexpected introduction of the obligation to present three estimates for each action of the project, from different suppliers. “We have now overcome this problem to a certain extent; we are now equipped for it. At the time, instead, the criticality was the fact that the sector found this new and sudden requirement when the projects had already been written. Another thing creating difficulties is the lack of interconnection between National and Regional administrations. The “anti-mafia” documentation, for instance, must be presented several times to several bodies, and today, when everything is accessible in a few clicks, it doesn’t make much sense”.
In any case, the CMO Vino Promozione is a fundamental and well-used tool. And, there are actions and geographical areas that stand out from the others. “The main area of third-party countries in which we invest absolutely the most is North America, primarily the United States, but Canada as well. And, the United Kingdom, which is now a third-party country, is a market where everyone makes investments, perhaps with fewer resources, but the market provides great visibility and is essential for brand positioning. On the other hand, investments in China are decreasing, although it is still a country of interest, and the South American area, where the issues are related to very high duties, and it is not a particularly brilliant economic picture. Africa is still not a significant area, while the countries of the Caucasus, such as Uzbekistan or Kazakhstan, for instance, are starting to look more interesting, though they obviously cannot promise very high volumes in the future, but companies are starting to explore them”. Among the most invested measures, Ballotta, head of Business Strategies, explained, there are all of those that put producers and wines directly in contact with the trade and the public. “Events, tastings, Masterclasses and so on, are by far the most popular measures. Traditional advertising is also usually implemented to support these activities, where professionals in the sector meet, or directly with the public. We are especially looking at researching language and messages to conquer the youngest audience, who are the great, but not simple, challenge of the future market”.