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Italy Gives "Thumbs Up" to Ethnic Foods

By Robert Curtis

Once almost proscribed, ethnic foods are just beginning to provide mouth-watering competition for Italy's time-honored cuisine. A maturing generation weaned on cable's MTV channel, plus increases in immigrant populations and tourists, have eroded the sanctity of the Italian kitchen. Particularly in northern Italy, where fuller wallets and tourist centers have nurtured a hothouse environment for introducing new tastes.

italy bar graphThis development, made-to-order for U.S. consumer-oriented agricultural exporters, is as timely as it is providential, allowing exporters to reap the new-found benefits of the Euro-stabilized lira.

Already the 14th largest U.S. export market, Italy imported over $1 billion worth of U.S. agricultural products in 1997, plus another half-billion dollars or so that was transshipped through neighboring European Union (EU) countries.

And the market has much more room for growth, especially to serve the convenience needs of time-starved consumers.

Pizza Still the All-Time Favorite

While 2,300 ethnic, non-Italian restaurants are making inroads into standard Italian fare, they compete with 20,000 pizzerias. Even McDonald's, the country's largest non-Italian fast-food chain, can claim only 200 restaurants.

Put in cash terms, Italian consumers spend $7.3 million a day on pizza, but only $1.2 million on all other fast-food restaurants.

sandwich with italian flagDoing Business in Italy

When in Rome, do as the Romans do, at least as far as business is concerned. In surveys, U.S. business representatives rank Italy as one of the most difficult EU countries in which to do business. The bureaucracy is many- layered, and the economy more regulated than those of most other EU countries.

Free-flowing, spontaneous meetings may distract a U.S. business person accustomed to scheduled agendas, but it's important to observe the mores of the business community.

Cellular phones are endemic and often take precedence over face-to-face contact, with constant ringing and private conversations taking place within the context of business meetings.

But there is a line that must not be crossed. Italians keep their personal and business lives separate. It's important to limit conversations to business matters and always retain formal titles in addressing business acquaintances.

Breaking into a circle of Italian importers and distributors may require 2-3 years of promotion. So research must be done early on to zero in on a compatible Italian partner. While there is a trend toward direct importation by supermarkets as well as some consolidation of importers, small, family-run companies still make up 90 percent of all distributors. They are efficient organizations and represent one of the great strengths of the Italian economy.

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The author is director of the Agricultural Trade Office in Milan, Italy. Tel.: (39-02) 290-35260; E-mail: atomilan@fas.usda.gov


Last modified: Thursday, October 14, 2004 PM