[MUSIC] [MUSIC] When we think with territory, we think of that combination of natural resources which makes that territory distinctive and magic and particularly productive for food and beverage companies located in that territory. But a territory is much more. A territory is a combination of three different forms of capital. Social capital, cultural capital, symbolic capital. [MUSIC] Social capital is an intricate network of relations across people, institutions, companies, in that territory. In that network, information flows, knowledge flows, influence flows. So belonging to that territory for the food or beverage company means belonging to that network of relations. [MUSIC] Cultural knowledge has to do with competence and knowledge. Knowledge and competence develop in their territory over time. Because of the experimentation of company's new discoveries they attempt to solve new problems. And so a company which belongs to that territory can leverage on this knowledge accumulated over time. [MUSIC] Symbolic capital means reputation. If consumers also say a specific territory to the production of a product or a service. This will make a reputation for that territory. So the company belonging to that territory can leverage on that reputation to build a competitive advantage over it's competitors. Today, we start a journey in region of Italy, Emilia Romagna specifically in a city Modena, which had been able to build a reputation on food and beverage excellence, a reputation made of production, nature, technology, people, companies. We will meet entrepreneurs. You will meet company's trying to understand what makes a territory so distinctive, compared to other territories. Follow me in the next steps of our journey. [MUSIC] Modena is famous all over the world, especially for their balsamic vinegar. Underneath the roof of every old building in Modena there is an Acetaia. Acetaia is the cellar where balsamic vinegar is kept. But not all balsamic vinegar is considered traditional. To be denominated traditional, the balsamic vinegar should be a very high quality and accrued by a consortium of producers of traditional balsamic vinegar of Modena. The Molleti family owns one of the oldest Acetaia still in function. They only sell to few, selective restaurants and to few corporations for corporate gifts. And we will interview the lady who gave most of the impose of the development of the company in the last few years. [MUSIC] [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] >> [FOREIGN] [FOREIGN]- >> [FOREIGN] >> [FOREIGN] >> [FOREIGN]- >> [FOREIGN] >> [FOREIGN] [MUSIC] The company we're going to visit now is a very interesting one. It is the largest Italian winery. Its name is Cantine Riunite & CIV, and they make Lambrusco. Lambrusco is a red sparkling, wine which is typical of this area. We will meet different managers of the companies. And through the meeting, we will learn how to make a local product successful in a global market. [MUSIC] Lambrusco is one of the most typical products of this area. Can you tell us a bit about the story of this product? >> Lambrusco is a family of different wines. It came directly from the ancient wild vine of [FOREIGN]. >> When we talk about Lambrusco, we think, as consumer, that Lambrusco is one, but actually it is not one. So different parts of Italy, or different parts of the world, they drink different kinds of Lambrusco. >> Lambrusco is eclectical wine, because traditional is made in different styles. You can drink Lambrusco absolutely dry or with a little sip of sugar, so its soft. Lambrusco the only red wine with bubbling, and this is the main character of this wine. >> Elena, Riunite is the largest Italian winemaking company. Can you tell a bit about the story of this company? >> Riunite is the largest Italian winery. In 1950, Riunite was formed by an association of nine local small capacity wineries. Most important part of the history of Riunite began In 1967, two businessmen met in Milan at a wine exhibition. US businessman understood that Lambrusco was a product perfect for the American consumer at that time. And the president of Riunite had, I think the courage, and the confidence in this person to follow his suggestion to invest and make a dream come true. Or maybe more a dream, I think it was sort of vision. >> And since then, how did the story change in US, and then for Riunite? >> The golden age of Riunite in the States was in the first half of the 80s, from 1980 to 1985 when Riunite sold, each year in the United States, close to 11 million cases. 130 million bottles per year. >> More that in Italy. >> It was by far the biggest, and most important market. At the end of the 60s, the wine consumption in the US was one-third of what it is now. So, of course, there was a local production, California's been producing wine for a very long time. But US consumers were not so confident with wine, were not use to other types of beverages and drinks. Riunite had the power, I think, the capacity, the ability to get American consumer approach wine, taste wine. >> The US market has become, in the last few years, a very competitive market. So the strength of Lambrusco, how did it change? Or has been affected by the competition? What did you do to compete against new competitors, or stronger competitors? >> Of course the U.S. market has become a huge market, both for domestic production, for imports. Wine from all over the world, but let's think about the new world. The wines from South America, New Zealand, Australia. So it's a very competitive and difficult set. We need to approach new generation. Millennials nowadays have access to a lot of information everywhere, websites, on the Internet, social media, and so on. But at the same time, I think they are looking for authenticity and real values. What we are trying to deliver to them with this packaging is what we call heritage. It means that we try to make a summary to include all the core values, and the main characteristic of the product, of the area. Of the people who made the history of Riunite and the success of Lambrusco, all over the world. The image of Lambrusco over time has changed a lot. Can you tell us a bit of the change of the image of the last 10 years? >> Riunite, the company redefined the label of Lambrusco, or Riunite Lambrusco, first of all in US market, and then in Italy, And then in the other markets in Europe. On year ago, we started to analyze the consumer setting new trends and naturally, [FOREIGN]. We decided to redecorate, the branding literature over Riunite Lambrusco in particular for media. If you notice, we highlight the landscape, and the warmth of a farm gives the idea of our tradition and authenticity product. The signature on the bottom connect the product to a persona. The font and the colors, and in general a lot of elements, very linked to the tradition. >> And innovation can be also deployed at the level of the product, so did you launch any new product in the last few years? >> We developed, during the last month, a new version of Riunite. We tried to rebuilt the traditional process for obtaining the traditional Lambrusco. So we went back to the origins before 1950. So this is the bottle we obtained so you can see that the label is quite crafty, the label. You have different elements also for show the colors that are linked to the tradition. The Italian name is [FOREIGN]. Name for in English is timeless. So because we want to think that we can, in a certain way, rediscover tradition in modern, innovative I'm going to say way today, the bottle is completed with the back labels in which we will put our QR code. And people using the mobile device can access a video on our YouTube channel with a explaining the product. [MUSIC] >> The name of the company is Bio Hombre, it's one of the few organic companies making Parmigiano Reggiano. With this interview we will learn how a company can differentiate its products when the product is made exactly the same way of its competitors. And so we will learn how important is to find differentiation basis in order to build a competitive advantage. [MUSIC] Mateo, can you tell us is a bit more about the production process of Parmesan? >> Is a very complicated process that start from the land, then you need cows, of course for producing milk, and then you need time. Parmigiano Reggiano is made without the pasteurization cycle so because we maximum arrive at 55 -60 you can add only two ingredients or topping. I like to call topping, because one is the rest of the day before, is waste. And this is very good for starting the fermentation of the milk. And then we use is rennet, is a calf rennet, is an enzyme that we took from the stomach of the baby. And is the only things that you can use from passed to the liquid's condition to the solid's situation. Because you have to remember that the Parmigiano Reggiano is we call [FOREIGN] because it's hard. Then you need time, 15 days in brine solution, salt and water, and more or less 23 month in your warehouse. So is impossible to find the unique taste. We produce the cheese in the same way. But there is 50% of, we have an area where the taste can be different. For this reason, the marshall of the consortium, they check only the system for producing the Parmigianino Reggiano. They use a [FOREIGN] like a small hammer. They listen the sound and they check you the quality inside. There is only one way for producing Parmigianino Reggiano, and there is only one sound. This is very simple, all of our process and after 24 month, this is the best period for eating my Parmigiano Reggiano. There is no connection between how many months you take the cheese in your warehouse with the quality. The good question is please tell me the quality of the milk when you start to do this cheese. I won't try to create a different combination between water and the richest part of the protein and fat. And you can do it this only with two things, the quality of your feeding that you will give to your cows, grass cereal is I produce out of things. The second is the breed, in my case we have two different breeding, my farm. One is the typical Italian Friesian, the black and white, and then we have the red cows. This combination, because they are cows, but they produce different milk, create my best combination. >> There is this very strong connection between Parmigiano and the area. So this connection is made of what? >> There are five county, Modena, Reggio, Parma, for Bologna City and down to the Lupo River for Mantova City. Is a very small area inside the Emilia Romagna region. We are now 380 cheese producer, behind there are about 5,000 farms, and more or less 200,000 cows. We produce 3 million wheel of cheese in a year. Nobody really know the reason why in this area we are so able for producing Parmigiano Reggiano. I think that it's part of our history, but in then you think that the more the biggest treasure is the people that live in this area. And they promote and they produce and they are focused to do the Parmigiano Reggiano, >> For us Italians, Parmigiano is part of our culture. But how can you explain and sell Parmigiano in different countries, with different cultures, where mostly consumers don't know. So how can they recognize the quality of the product? >> Today, we have a very credible weapon in our hands. By Internet, I can describe what I do every day here, I can describe, example, that we are organic. We are closed farming, we don't take milk from other farms, we use only our milk. We started the cheese inside, we can prepare your box with your order. So the people, I think that today, they want to buy value. >> So in marketing language, we can say that you are building the brand. So Hombre's becoming the brand which is distinctive from other brands of Parmigiano. This is the next point I want to cover. Because if that competition is fierce within the area, within the consortium, how can you differentiate a product which is made with the same production method and make it different from your competitors? >> If was able to tell you all of the values that they have in my production, I think that I will win the challenge of the selling policy in this farm. I like to manage my farm like a train with lots of wagons, each wagons is a identification point of my process. I have to add each years, a/f wagons to catch more customers around the world. >> Which is not so typical in for Parmigiana making to be organic, how many producers are organic? >> Today we are about 20 producer. 20 out of 500, you said, no? >> Yes, we are very small. Many years ago it was forbidden to call organic Parmigiano Reggiano. We are Parmigiano Reggiano producer, but we produce with organic farming. You are a farm before then producer, and to be a farmer, you need land, so you must be able to management all the lands. And then you have your cattle with your cows. Another thing that for me is important in this last is very patient to speak about slow food. It is correct, the slow food means you have time to eat or to- >> To enjoy. To enjoy the food. For me, there's no slow food, if it's not made by a slow company. I try every time to say, take your time to eat the cheese, and this for me is the best combination. [MUSIC] Modena has a territory where the old live side by side to the contemporary. So with the traditions and habits of people, their passions for good food and good cuisine resounds with the passion of managers and entrepreneurs for making products the proper way. We are going to meet Marco Guerzoni, product manager of Glem Gas. Glem Gas is a company specialized in cookers. In this interview, we will learn how this company gets information about the trends and the changes of how people cook in different countries in the world, and how they include this information in their product management. And then we will also learn how they are able to build a competitive advantage in being located in Modena. [MUSIC] Marco how do the habits of consumers all over the world about cooking impact on your choices about product design or the definition of the characteristics of the cookers? >> I think we pay a lot of attention regarding how the way of cooking changed and how the people want to use their appliances at home. Of course, we cannot follow all the trends. Because it's impossible, we have our own identity that is based on gas. So what we are try every time to do it, to try to evolve this way of cooking, first it was just a static oven that we could use at home in our free standing cookers. And then it comes electricity. And now, we are seeing also steam. And so, we play on this. Starting from 2002, we change the way of cooking from gas and putting the fan inside. Having those so the ventilation, to give also a different opportunity to the customer to cook. I mean using different level, a better heating distribution. All this innovation really pays in terms of shares and awareness for us. >> Glem Gas exports a lot abroad, and so you are exposed to many different countries, many different habits. So how does the difference, the cross countries impact on your choices? >> We want you to find us as a specialist in cooking. So of course, to follow the needs met the consumers in different countries, we have to offer a really wide range. For example, basically in the Middle East people want to cook with a lot of gas. Want to cook for a long time so they have an intensive views of the machine, of the cookers. So we are really specialized to offer them with big cookers with big cavity, and with the really power burners inside. We establish our, let me say share there. I think was at the end of the 60. And now we are proud to say that we are the premium brand there. Probably, we will work in the right direction. 80% of our turnover is in a foreign country, so we have to follow also other necessity and needs. Australia, for example, is another country that loves Italian cookers, so we are present there since the end of the 90s. We invented, let me say, an hybrid cooker for that market. We call it bioenergy. You can use gas for cooking, or electricity. Also, this story gives us good results. >> Since the transfer is so important. So the changes in the consumer's cooking habits are so important to your company, which are the matters you use to collect information. >> Firstly, the partner that you have in the market is a key player for us. But not only, we want to take information and idea also from other segment or other market, complementary to us. So I'm talking about professional cookers for example, where there is a lot of sophistication and also using of electronics. As Italian for us it's also important to work on the design of course. Because made in Italy. For us is not only the place where we are producing everything, is a big basket of value and skills where to reflect all of this on our product. >> So, how important is to be here in the area of Modena in the building of your competitive advantage? >> I think it's a key point for us because first in the knowledge of the people and the network of our supplier is based here. If you consider that most of the cooking production is made in this province or close to, this is a fantastic, let me say, advantage that we have to play on it. All the promises, a long list of really excellence in different sector, machinery, automotive, of course, sports car, all made in 50 meters around here. Then we have medical stuff, fashion company, so it's really a big, big, big, let me say, group of people that's really want to be the number one at what they're doing. Our lifestyle and the way of stay together at the table and to find, to create our dishes in lunch ordinary is something that at the end for a company like us so that, where cooking is a key point is a, let me say, a value that we can not forget. [MUSIC] >> One of the most interesting things of the area of Modena is this combination of old traditional products and high technology. Today we're going to visit Tetra Pak. Tetra Pak is a Swedish global multinational global market leader in cartoon package. So Tetra Pak is one of the most important suppliers of many food and especially beverage companies. We are going to learn how this company includes the information about the trends on the beverage market into their innovation strategy. We are going to meet Matthew Hatton, who is the Director of Marketing Intelligence within the global marketing team, and try to understand which is the role of this information in the decisions that Tetra Pak takes about innovation. And then most importantly, why did Tetra Pak choose the site of Modena to locate one of the most important R and D and engineering sites it has over the world. [MUSIC] For a packaging company, it is very important to understand the trends of the downstream markets in order to include this information in the innovation and other decisions. Can you tell us a bit about the Tetra Pak approach? >> It's a very good question and it's probably the $1 million question. Our approach is as follows in marketing. We follow the different trends in the market place. We get that information from different servers and providers. For example, there are lots of companies like Frost & Sullivan, McKinsey, these types of companies. Then we analyze those trends, those mega trends and look at it in terms of our business. So what we do then is we sit down as a team, that means marketing team. And say what do these trends mean, which means we need a context, because before we can get a decision and hand it to our innovation guys and our engineers, we need to understand something a bit more. I give an example, population is growing. Okay, population is growing, but where, and to what extent in different countries? And then we see what kind of consumers are they? What are their lifestyles like? And if you look at the consumers, we're really trying to find out what kind of packaging could they afford? And as such we can see that we need to produce packaging that reaches a lower price point that is robust in these different countries, with the machines that are simple. So, then we start to break it down, and then we take it every year to what we call our strategy council, where we bring some proposals to our management. We can then take it to our front-end innovation department and our engineers to get working either on deeper studies or some kind of solution to market. If we took, over ten years ago, we saw a significant trend in the market place. Now that trend was the fact that lifestyles were changing and more people were consuming products out of home. So in essence we saw also in terms of some countries, particularly in Europe, the number of people within a family unit decreasing. That also has an impact on packaging. What was the impact? Essentially, the size of the packaging and also where you consume it. We looked inside our product portfolio and said well, that means that more people are using what we will call portion packs. So single serve size. So, first of all, we have an idea of the size that people want. So as such we embarked on a study to look at consumers, how they drink, how they drink on the move, and different techniques of drinking. And as such we designed a closure to meet this consumer need. As we designed the closure, we also made sure that the closure fitted with the package. And then of course, the great moment, and this really helps and cheers up engineering, is when we came to them and said can we make this onto a machine please? And so of course we then had to design a machine and make sure that we could produce this closure and put it on the package. We released the package and the closure in 2010. We're also now looking to extend into further formats. And released it into multiple countries, also in Italy you can find it on the shelf in the Skipper brand for example. And it's just one example of how we try to respond to this consumer change. And also the demographic change that we're seeing. Not only in Europe, but across the world. >> I think since you are a global company you have a fantastic observatory over the whole planet. Other trends which are basically common to most countries, many countries, are usually trans-regional. >> It's a very difficult thing to look at a trend globally and then translate that and make sure we get it right. But also in terms of some consumer trends such as health and wellness. That's a common trend, but adapted differently in different countries and people reacted in a different way. For example, if you're in China or Asia, a safe package and a healthy product is very important. In Europe, safe package is a given, but how I consume that and how I can consume that to improve my diet or my health and wellness is a bit more of an issue. So it does manifest itself in different ways, but the trend, it can be quite similar. But the trick is actually to try and do that. To try and say right, how can we answer this generically, but deploy it locally to make sure we capture the local need in the marketplace? >> How does the marketing department contribute to the next steps? >> I would say the challenge that we have in the company is where marketing meets engineering. So what we try to do is sit and communicate. Communication, I know it sounds very basic, but it's absolutely essential that we communicate on a regular basis throughout the project. So we can bring new intelligence in. The other way is also to say, okay, how can we turn the trend into requirements for a product? To turn them into requirements, we try to understand what a customer would need and then try to pick up data that will be able to support that, in order give us stretch targets. >> And besides the data and the information you get in your industry, are there any other industries that you consider interesting enough to look at in order to get insights about the development of your own industry? >> I think that bench marking, and I've done this my self within my own department, outside an industry is essential. Not necessarily to create a specific product, but certainly to understand if there are new technologies or new ways of doing things that can help us. >> And are your customers really insightful for your innovation development? >> We try as much as possible to make a product that our customers really want and need. What we try to do is say how can we produce a product where we can quantify the value to the customer? It's very important that across all the different customers that we can show that there is a value in our product. >> Moderna for Tetra Pak is very important R&D and engineering production site, it's a hub. Why did Tetra Pak choose basically to open up a site in Modena? >> Some of the reasons why we're here, you actually have to look around the area and look at the history of the area and also the history within a particular industry. And I'm talking really about the metal mechanic industry. And also that resonates if you look into the automotive business. You look into what we have around here in Ferrari, Maserati all the way through to Lamborghini. In terms of the excellence and expertise in engineering and in manufacturing of machines, Modena is extremely competitive. Not only in terms of the history, but of course the skill set of the people you're looking for, the supply chains and the supplies in place in order to work with you on ideas and concepts as you're bringing them to market. In 94, Modena became also an R&D center, so a research and development center. And I think that that's testament to the hard work and to the success of the 14 years previously. And also the trust that the company has that we can continue, to grow and bring new technologies, new ideas to the marketplace. [MUSIC] I think the next meeting will be a very exciting one. We will meet Martha Polini. Martha is a famous Italian chef. She has a long experience in the restaurant business in Italy, and in other countries. Marta is a chef very deeply rooted in tradition. She's from Modena. And she is a partner of one of the most catering companies in Italy, BibenduM, where we meet Marta and her partner in the business, Sabrina Lazzereschi. From them, we can learn how tradition matches innovation in the restaurant business. [MUSIC] Marta, when talking about restaurants tradition is a word which is very much used. But what does it mean, tradition, in the restaurant business? >> Tradition is whatever make the history of your country. I think without any traditions, it’s very difficult to do something new. In Italy, we have many different traditions because there are two kinds of different cuisine, the rich cuisine, from the rich people, noble people, very elegant, close to the French tradition. And in the other side, we have a kind of cuisine from the poor people, very simple like using recycled food like pappa al pomodoro, like ball bolita. They are very, very different. So we have two different way. >> Your career has been very long. So you have a lot of experience in the restaurant business. How do customers influence your job? >> Of course, I can't say that they don't influence my job, because you have always to have a relation with them. You have to make them happy. So of course you have to be very flexible. Usually we succeed in giving the right idea what they have to do. So we are pretty happy [LAUGH] about that. We really try to make something different, especially with the mood. I use new tools, new appliance, to prepare my food. But at the same time I try to stay attached to earth, with my roots. At the end of the story, people like to eat food and to taste real food. >> So what are the elements of innovation of Franceschetta58? >> [FOREIGN] >> Everything is very easy. >> You can eat. You want a good food. But at the same time, you want to enjoy in a different atmosphere. In the catering, the mood is very, very important. To add the client, we have the place. You have the mood. You try to put everything together, to mix up everything. In this way you can recreate whatever the client like or you offer to the client. >> The fact that you rule selling Modena, so in a city where the culinary tradition is so strong, so rich, is it constrained for innovation, or it fosters, it helps, favors innovation? >> I think that helps for innovation because when you have really strong roots, and you know exactly what you are, you can go far. Everything starts since I was a young girl. I decided to transfer my hobby in my work. I opened a restaurant in Modena. It was very successful. But I always want to have a new experience. I can't stop. I had a proposal from Manhattan, so I decided to go. I sold the restaurant and I went to New York. And over there I was the only woman chef, the chef with 23 cooks under me. Then I went to open Paris and then I opened Chicago for beach. And then I decided to go back home and to move in another company, an Italian company. They have fine dining, called me for a restaurant [FOREIGN]. I was perfect for that restaurant because I was a mother, I was a chef. At the end of the story, I stayed about 16 years. But why I stayed so long? Because every two years I had a new concept to develop. So I opened about other five restaurants, over there. In 2000, I decided to come back to Italy. So I started with BibenduM Catering. We grew up very fast. I picked up the Franceschetta Restaurant that was one from Massimo Bottura. We are partner. This was a very, very nice place. And then, after three years now, I opened in Milan. I think that we need to look always for something new to have new excitement, to new ideas. The habit to do the same thing every day, I think, just kill you a little bit. [LAUGH] >> You said that you started in Modena, but then you moved abroad. So how much did it contribute to your creative indication? >> A lot, because going there, you can be in contact with many different kinds of cuisine, possibility to know a lot of people, many different chefs. You can share with them or your experience and their experience. You can just speak some few ideas, some small things that can really change your experience. You can be innovative. >> Thank you so much. >> Thank you. [LAUGH] It's been a pleasure. [MUSIC] >> In our trip to the Modena district we met so many interesting people and companies. And what we have learned is that the territory can contribute to the competitive advantage of companies in many different ways, through the competencies, through the heritage, through the innovation, through the network. But what is important to note is at the end, is that the territory has no value without people. It's exactly the passion, the competence of the people working in that territory that make a perfect combination of resources, which determines the success of the territory and in turn the success of the product of the companies located in that territory. [MUSIC]
