Can Geographical Indications foster local development? Evidence from Montefalco Sagrantino DOCG

Introduction The European Union (EU) has established, since the 1990s, a labelling system based on Geographical Indications (GI), in order to protect food and wine products from specific areas inside the EU member states. In particular, Italy is the EU country with most geographical indications for both food and wine products. With respect to wine, there are 341 DOCs and 78 DOCGs in the country, revealing how much this product is part of Italian culture and is embedded in many different territorial contexts. The country is also the world’s largest wine producer (OIV, 2022) and the national wine production was estimated, in 2021, to have generated a revenue of around 13 billion euros (ISMEA, 2022). These figures demonstrate how much viticulture and wine production play a very significant role in the Italian economy; it is then easy to imagine that wine production must have had, to some extent, a socio-economic impact on the different wine-producing areas. For this reason, it may be interesting to understand how much of this impact or development can actually be attributed to the presence of a local GI. This is a question that other researches have already tried to answer by analysing different types of data. Vaquero-Piñeiro (2021) has considered the municipalities where some of the most performing Italian food and wine PDOs are produced, to understand what are the contextual conditions that have mostly contributed to the economic success of local productions. While it seems that for food PDOs a successful GI may come from thriving socio-economic preconditions, in the case of wine PDOs a higher production value may also derive from other contextual socio-cultural factors; these include cultural traditions, community-based expertise and local identity (Vaquero-Piñeiro, 2021). Differently, Crescenzi et al. (2022) only considered Italian wine protected by GIs, in order to evaluate if these indications actually promote local development in rural areas. By comparing rural municipalities with GIs since 1951 with municipalities without GI status, results indicate that the former areas experience population growth and an economic development in non-farming sectors, including higher value-added activities (Crescenzi et al., 2022). Therefore, this study aims to address the research question “How can a wine GI impact local development?”, in particular regarding the Montefalco Sagrantino DOCG area in the region of Umbria (Central Italy). However, in a different way with respect to the aforementioned researches, we have decided to use qualitative data, in order to understand from local stakeholders if there has been a tangible socio-economic development in the area since the GI establishment and, if so, what is its perceived magnitude. Indeed, qualitative methods have been employed in different studies regarding the development of wine-producing areas (Taplin, 2016; Vázquez Vicente et al., 2021). In addition, we wanted to understand how much of this development, in their opinion, can be attributed to the presence of the wine GI (that is, Sagrantino DOCG). Data and research methodology For this work, we adopted a qualitative method research approach. Data collection was based on primary data sources, that is through semi-structured interviews, which were pre-arranged with the interviewees; every participant was aware that we were collecting data on wine and local development. We selected 21 profiles for both in-person and online interviews, which took place between July and October 2022. These profiles include: 13 wine producers (mostly from the Sagrantino DOCG area, but also from Montalcino DOCG and Sicily); 5 wine experts (including journalists, sommeliers and a sales manager) and 3 local institutional figures from Montefalco and Umbria. We decided to include also producers from Montalcino and Sicily in order to understand how other areas in Italy were able to develop thanks (mostly or in part) to the wines produced there. The interviews lasted between 20 and 50 minutes each, and were all digitally recorded and transcribed verbatim. Data analysis was then based on so-called grounded theory, particularly as implemented by Gioia et al. (2013), which is considered appropriate in order to understand the lived experiences of informants (Gehman et al., 2018). After listening and reading the interviews, by firstly applying open coding we were able to identify 14 first-order concepts. Then, by looking at these concepts, we classified them into five second-order themes. Finally, analysing the connections among the second-order themes, two aggregate dimensions for the second-order themes were then established: establishing a name and creation of a local model. Discussion of results The results obtained highlight different areas under which a wine GI can foster the development of a certain area. Firstly, talking with producers, it emerges the amount of work that has been put during the years into understanding and working extensively on the characteristics that make this wine so special and unique with respect to others. This, in addition to finding ways to create more value for the product (e.g., quantity produced, sale prices, etc.), helps in defining the wine. The producers also feel the responsibility, along with wine experts (such as sommeliers, journalists, etc.) to find the right way to communicate the wine to consumers and understand their perceptions. All of this concurs in what can be defined as establishing a name for Sagrantino, thus making it earn its spot among top wines. Relatively to the geographical area in which the wine is produced, three main themes have emerged through the interviews: that is, the offer of a local experience, a network establishment and collective responsibility. Regarding the first theme, locals have become more and more aware that now tourists not only want to visit a place, but they also aim to understand what makes it unique, its traditions, its culture; they are looking for the so-called “experiential travel”. Also, increasing importance is attached to nature. Therefore, the tourism offer in the Sagrantino area has been evolving to answer these needs, with an increasing connection between cultural events, art, wine and local nature. Furthermore, it has emerged how much important “team work” among producers and local institutions has been fundamental not only during the past years, but how will also continue to be in the future. Indeed, many recognise how this work will now need to be done at broader levels as well, for example combining the promotion of wine with other local products or other touristic amenities, or starting to promote wine and other amenities at a regional level, in order to have a more effective communication strategy. Lastly, it also emerges the acknowledgement (especially from the more developed area of Montalcino) of the importance for wine production to create social utility for the local community, in order to further expand the benefits. Similarly, in different producers there is also an increasing awareness of the relationship between wine and environmental sustainability, and how important it is that a new sustainable viticulture is not only an individual responsibility, but should be pursued by as many producers as possible, with a collective effort. All the aspects aforementioned are part of could be defined as the creation of a local model for development. Main conclusions This study provides a good qualitative overview of how the development of a specific territory (Montefalco) is impacted and driven by the presence of a wine GI (Sagrantino DOCG). By interviewing local stakeholders, it is possible to get a first-hand testimony of the effects that establishing a wine GI can have on a specific area. This allows to get a different and unique perspective with respect to carrying out a more traditional quantitative analysis. Firstly, it is interesting to realise how much effort has been (and is still continuing to be) put during the years in order to define a unique wine. Producers have been working to understand and to improve both the grapes and the wine from a qualitative perspective. Therefore, the wine has been evolving, making it also possible for each producer to leave its own mark, but all still providing a distinct and recognisable product. The high levels of tannins found in the Sagrantino wine are considered by many to be the main challenge to establish the product’s reputation, but is also thought to be one of its main advantages over competing Italian red wines. Producers and other local stakeholders have also witnessed a change in the appeal of the Montefalco area overall, with both national and international tourists more attracted to the area not only because of Sagrantino wine, but also the cultural and natural amenities of the territory. However, they do recognize the driving force that Sagrantino wine has had over the years in stimulating an increase in the quality of the services offered. For example, local wineries are now offering a larger variety of activities to visitors, and restaurants are developing a more updated and refined cuisine (but still very consistent to the local tradition) for consumers. The number and quality of hospitality-related activities have greatly expanded as well, and cultural development has also been experienced, with wine producers actively contributing. Despite only using qualitative data, the methodology chosen and the findings of this research have allowed us to confirm what has already been demonstrated in previous quantitative studies about the impact of GIs on rural development (Crescenzi et al., 2022; Vaquero-Piñeiro, 2021). This proves how valuable qualitative research can be too in order to assess socio-economic development in rural areas.