Terre d’Oltrepò: Comprehensive Company Profile

Background

Overview

Terre d’Oltrepò (TDO) is a prominent Italian wine cooperative established in 2008 through the merger of Cantina di Casteggio (founded in 1907) and Cantina Sociale Intercomunale di Broni (established in 1960). In 2017, TDO expanded by acquiring La Versa, a historic brand dating back to 1905. The cooperative is headquartered in Broni, Lombardy, and operates three wineries located in Casteggio, Broni, and Santa Maria della Versa. TDO represents a significant force in the Italian wine industry, encompassing approximately 5,000 hectares of vineyards and over 600 member wineries.

Mission and Vision

TDO's mission is to create an integrated and sustainable wine production hub that enhances and leverages the untapped resources of the Oltrepò Pavese region. Inspired by the Champagne model, TDO aims to centralize production processes to increase efficiency and quality. The cooperative focuses on producing high-quality wines that reflect the unique characteristics of the Oltrepò Pavese terroir, supporting small producers and fostering community engagement.

Key Strategic Focus

Core Objectives

• Industrial Integration: Establish a centralized production facility to streamline operations and improve efficiency.

• Quality Enhancement: Implement transparent and certified production processes to ensure high-quality wine output.

• Sustainability: Adopt environmentally sustainable practices in viticulture and winemaking.

• Community Support: Assist small producers by reducing territorial fragmentation and providing business services to members and commercial partners.

Areas of Specialization

• Pinot Noir Cultivation: Focus on cultivating Pinot Noir, with Oltrepò Pavese being the third-largest region globally for this grape variety.

• Traditional Method Sparkling Wines: Emphasis on producing high-quality sparkling wines using the traditional method, particularly from Pinot Noir grapes.

Key Technologies Utilized

• Centralized Pressing Facilities: Adopting a centralized pressing model to enhance production capacity and efficiency.

• Sustainable Practices: Implementing water purification and filtration systems to reuse 95% of water in production facilities.

Primary Markets and Conditions Targeted

• Domestic Market: Strengthen presence in the Italian market, particularly in the horeca (hotel, restaurant, catering) and large-scale distribution channels.

• International Market: Expand export reach to key markets, including the United Kingdom, Spain, Portugal, Japan, Germany, and Nordic countries.

Financials and Funding

Funding History

TDO has undergone significant financial restructuring to support its strategic initiatives. In October 2024, the cooperative transformed into a joint-stock company (S.p.A.) to attract external investments, aiming to improve facilities, increase production capacity, and support cooperative growth while maintaining mutualistic values.

Recent Funding Rounds

The cooperative is in discussions to secure investments from Italian financial entities specializing in medium-sized companies with high growth potential. These investments are intended to bolster the cooperative's industrial development plans and enhance member benefits.

Notable Investors

Specific details about individual investors are not publicly disclosed. However, the cooperative is engaging with private equity firms and industrial partners to secure the necessary capital for its expansion and modernization efforts.

Intended Utilization of Capital

• Infrastructure Upgrades: Enhance production facilities to increase efficiency and capacity.

• Sustainability Initiatives: Invest in environmentally friendly technologies and practices.

• Market Expansion: Strengthen domestic and international market presence through strategic marketing and distribution efforts.

Pipeline Development

Key Pipeline Candidates

• La Versa Sparkling Wines: Revitalization of the La Versa brand, focusing on high-quality sparkling wines produced using the traditional method from Pinot Noir grapes.

• Viticoltori in Broni Wines: Development of a new line of still and sparkling DOC wines under the Viticoltori in Broni brand, targeting modern Italian and international distribution channels.

Stages of Development

• La Versa Sparkling Wines: The brand has been reintroduced with a new product line, emphasizing its historical significance and quality.

• Viticoltori in Broni Wines: The new line is in the initial stages of development, aiming to offer authentic expressions of Oltrepò Pavese viticulture.

Target Conditions

• La Versa Sparkling Wines: Targeting consumers seeking premium sparkling wines with a rich heritage.

• Viticoltori in Broni Wines: Aimed at consumers in the modern distribution channels, both domestically and internationally.

Anticipated Milestones

• La Versa Sparkling Wines: Achieved rebranding and product launch, with ongoing efforts to expand market reach.

• Viticoltori in Broni Wines: Expected to launch the new product line in the near future, with initial distribution in select markets.

Technological Platform and Innovation

Proprietary Technologies

• Centralized Pressing Facilities: A unique approach to wine production that centralizes pressing to enhance efficiency and quality.

• Sustainable Water Management: Advanced purification and filtration systems that allow for the reuse of 95% of water in production processes.

Significant Scientific Methods

• Traditional Method Sparkling Wine Production: Utilizing time-honored techniques to produce high-quality sparkling wines, particularly from Pinot Noir grapes.

• Sustainable Viticulture Practices: Implementing environmentally friendly farming methods to ensure sustainability and quality.

Leadership Team

Executive Profiles

• Umberto Callegari – CEO

• Professional Background: Former Worldwide Commercial Lead of Customer Transformation at Microsoft, with extensive experience in digital transformation and business development.

• Contributions to TDO: Appointed in July 2023, Callegari has been instrumental in restructuring the cooperative, focusing on industrial integration, quality enhancement, and market expansion.

• Elena Vistarini – Advisory Board Member

• Professional Background: Economist and chartered accountant with a background in financial advisory and corporate finance.

• Contributions to TDO: Provides strategic financial guidance to support the cooperative's growth and sustainability initiatives.

• Gianfranco Casati – Advisory Board Member

• Professional Background: Retired Corporate Officer of Accenture, with experience in global business strategy and transformation.

• Contributions to TDO: Offers insights into global business practices and strategic direction for the cooperative.

• Andrea Toselli – Advisory Board Member

• Professional Background: President and CEO of PwC Italy, with expertise in assurance and consulting services.

• Contributions to TDO: Advises on governance and operational excellence to enhance the cooperative's performance.

• Enrico Cotta Ramusino – Advisory Board Member

• Professional Background: Professor of Business Economics and Management at the University of Pavia, with experience in corporate governance and financial management.

• Contributions to TDO: Provides academic and practical perspectives on business strategy and financial oversight.

Leadership Changes

• Transformation to S.p.A.: In October 2024, TDO transitioned from a cooperative to a joint-stock company (S.p.A.) to attract external investments and enhance operational flexibility.

Competitor Profile

Market Insights and Dynamics

• Market Size and Growth Potential: The Italian wine market is valued at approximately €14.2 billion, with exports accounting for 60% of this value. The Oltrepò Pavese region is the third-largest wine-producing area in Italy, with significant potential for growth, especially in the sparkling wine segment.

Competitor Analysis

• Franciacorta Consortium: A leading producer of Italian sparkling wines, known for its high-quality products and established market presence.

• Trento DOC Producers: Producers from the Trentino region, recognized for their traditional method sparkling wines.

• Berlucchi: A prominent winery that has recently expanded into the Oltrepò Pavese region, potentially increasing competition.

Strategic Collaborations and Partnerships

• Mack & Schühle Italia: Entered into a supply chain contract for an annual supply of 9-12 million bottles marketed between Italy and abroad.