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CAVIRO: THE RELIABILITY OF ITALY S GREATEST WINE SUPPLY CHAIN V i ni d I t ali a Since its creation as a farming cooperative in 1966, Caviro s mission has been to bring the greatest possible value to the grapes produced by its winegrowers. The growers are encouraged to produce different varieties that appeal to the global markets whilst paying the utmost attention to quality and keeping environmental impact to a minimum. In order to live up to the demands of different global consumers, Caviro has set the following standards: an integrated supply chain from vineyard to bottling: about 80% of the bottled wine comes from partners; creation of production and distribution partnerships; constant innovation in regards to products and processes which highlight the Group s industrial leadership. 190,000,000 litres of wine sold in 2017 7,200,000 consumer households in Italy 98% weighted distribution, Italy 7.6% market share by value in large retail chains in Italy (off-trade) 14.1% market share by volume in large retail chains in Italy (off-trade) 2 3
12.500 WINE GROWERS FROM 7 REGIONS, give 700,000 tons of grapes (10% of all Italian grapes) OOPERATION THE STRENGTH OF SPECIALIZATION 30 CELLARS produce 4.2 million hls of wine between 17% and 45% of which they transfer to CAVIRO The strength of Caviro as a farming cooperative is its ability to attract wine producers and cellars from various Italian regions, which offers a unique variety of wines on the Italian scene. FRIULI V. G. Viticoltori Friulani la Delizia The research for continuous improvement, common to all partner wineries, which have always made the history of this cooperative, is the driving force behind successful products on the market. EMILIA-ROMAGNA TUSCANY Agrintesa Cab Cantina di Carpi e Sorbara Cantina Forlì Predappio Cantina Sociale Centro Cantina Sociale di Argelato Cantina Cantine Sociale Leonardo di Faenza da Vinci Cantina Sociale di Limidi Cantina Sociale di Masone Cavim Cesac Emilia Wine Ville Unite CAVIRO bottles approx. 2 MILLION HECTOLITRES of wine, about 80% of which comes from its partner wineries MARCHE ABRUZZO PUGLIA SICILY Marchedoc Cantina Sociale di Matelica e Cerreto D Esi Cantina Colle Moro Cantina Frentana Cantina San Zefferino Cantina Sociale di Tollo Cantina Sociale LizzanoSan Giacomo Cantina Sociale Sandonaci Coop Produttori Agricoli Cantine Europa Cantina Sociale Sannitica Cantina Sociale Valle Del Sangro Coltivatori Diretti Tollo Madonna Dei Miracoli 4 5
UTHENTICITY KNOW-HOW, INSPECTIONS, ETHICS AND COMPETITIVE CERTIFICATIONS To compete on complex markets you need maximum reliability. This means an integrated supply chain with accurate checks, starting from the vine. We select our partner wineries through stringent supply and production specifications, then follow each wine-making process completed in our cellars based on high technology standards and the know-how of a team of wine experts. In this regard we have made substantial investment in technology aimed at preserving the optimal organoleptic characteristics of the product during the phases after wine-making and ensuring the best possible service to clients in terms of trade processes and logistics. Being part of Caviro means belonging to a large family with whom it is possible to share values and objectives. It means believing in a strongly peopleoriented Group, which is the most important asset for durable progress. In order to make this concept more concrete we drafted a Code of Ethics: a set of guiding fundamental principles and values which guarantees that all activities are transparent and consistent. This commitment is confirmed by the implementation of a Code of Ethics and of an Organisation Model in accordance with Legislative Decree 231/2001 addressed to the co-workers of all companies in the Caviro Group. 6 7
FROM NORTH TO SOUTH TUSCANY (770 ha - 1 cellar) Sangiovese Brunello Merlot Trebbiano Vermentino SICILY (4,050 ha - 1 cellar) Nero d Avola Syrah Grillo Cataratto Inzolia Grecanico MARCHE (367 ha - 2 cellars) Sangiovese Montepulciano Verdicchio Bianchello FRIULI VENEZIA GIULIA (1,660 ha - 1 cellar) Merlot Cabernet Refosco Pinot Grigio Prosecco Chardonnay Sauvignon EMILIA-ROMAGNA (19,053 ha - 13 cellars) Sangiovese Lambrusco Merlot Ancellotta Trebbiano Chardonnay Albana Pignoletto ABRUZZO (8,210 ha - 9 cellars) Montepulciano Trebbiano Pecorino Chardonnay INEYARDS IN ITALY CUSTODIANS OF REGIONAL EXCELLENCE IN WINE-GROWING The Italian wine industry features have favoured quality/value products on the one hand and superpremium ones on the other hand. CANTINA DI MONTALCINO Established in 1970, it has been producing Brunello since 1989. With 100 hectares, distributed across the 4 production areas in the region, it ranks as one of the first 5 wineries in terms of production potential. CANTINE LEONARDO DA VINCI Established in 1961, it has been producing Chianti since 1965. With 650 hectares, the Chianti Da Vinci wine is a category leader in the United States. Established in 1936, over the years it has become synonymous with wines from Verona worldwide. For several years it has been included in the prestigious Opera Wine event, 100 Italian Great Producers. To face competition from all over the world Caviro assures the quality of wine-making by its partner wineries with high technology levels and the know-how of a team of over 50 wine experts employed by each cellar. Today about 80% of the 2 million hectolitres of wine we bottle is made using grapes from partner wineries, with whom we share advanced technical expertise and in-depth knowledge of wine-making in Italy and its trends worldwide, to pursue a path which has never been interrupted. In line with the emerging trends and demand from abroad, the Caviro Group is the only company in Italy to have, over the past four years, created a portfolio of superpremium brands including products which, from Veneto to Tuscany, are regarded as the best testimonials for Italy on world markets. The winemaking and marketing expertise PUGLIA (890 ha - 3 cellars) of the superpremium wineries is now Primitivo Negroamaro Malvasia nera Nero di Troia supported by Caviro s sales force and by Main red Chardonnay Bombino the investments that are granted by Caviro varietals Verdeca in support of its international partners. Main white varietals 8 9 CESARI
AWARDS NTERNATIONALITY WORLD MARKETS AND INTERNATIONAL AWARDS TAVERNELLO Sangiovese Cabernet Rubicone IGT 2016 Silver Medal at Mundus Vini 2017 TERRE FORTI Sangiovese Merlot Rubicone IGT 2016 Gold Medal at Mundus Vini 2017 DA VINCI Chianti Riserva 2013 Silver Medal at International Wine Challenge 2017 We are thus able to bring to all consumer groups of the world market a complete range of Italian wines consistent with international tastes and an excellent quality-price ratio. We are proud to represent Italy by exporting to over 70 countries an extensive offer of Italian wines, distributed off-trade and on-trade. We operate in the different markets through partner importers selected in each country, or directly, through our organizations, such as Caviro Shanghai. Today we are a point of reference in the wine and distillery industry worldwide, a leadership position confirmed by the over 200 national and international prizes awarded over the past five years. LEONARDO Chianti 2015 Oscar Quality/Price Berebene Gambero Rosso 2017 CANTINA DI MONTALCINO Brunello di Montalcino 2012 Gold Medal at Berliner Wein Trophy 2017 CESARI Il Bosco Amarone della Valpolicella DOCG classico 2010 94/100 on The Wine Advocate by Robert Parker 10 11
ESEARCH THE DISTILLERY, QUALITY INGREDIENTS FOR TOP COMPANIES The mission of the Caviro Distillerie is to add value to the by-products of the Italian food and farming industries, using the best technological processes, whilst pursuing excellence in environmental protection. Thanks to our process know-how, to our advanced experience as regards nonoil chemistry and our high technology level, Caviro Distillerie is able to support its clients in developing semi-finished products. Today, the Caviro Distillerie is a point of reference for leading companies in the pharmaceutical, food and beverage industry worldwide as a supplier of semi-finished goods and raw materials, as well as being the 2 nd producer in Italy in regard to alcohol the 3 rd world producer in regard to natural tartaric acid. Our production range is completed by the production grape musts, enocyanins and supply of industrial services. Our production sites are: Faenza, for the distillation of by-product from wine making and the production of concentrated and rectified musts, grape juices, calcium tartrate, absolute alcohol, special denatured alcohols and enocyanin; Treviso, for the production of tartaric acid. 12 13
ENHANCING WASTE VINEYARD GRAPES FROM BY-PRODUCTS TO RESOURCES WINE BY-PRODUCTS % PRODUCTION WASTE WHEN THE CIRCULAR ECONOMY BECOMES REALITY NATURAL FERTILIZERS ENERGY WASTE PRODUCTS FOR PHARMACY, FOOD, AGRONOMY USE FROM WINE SUPPLY CHAIN 20% FROM FOOD SUPPLY CHAIN 47% INBOUND 540,000 t/y OUTBOUND 200,000 t/y REUSABLE PRODUCTS 43% With the goal of achieving total recovery of the by-products of its manufacturing processes, Caviro has developed processes that make it possible to minimize the reliance on conventional energy sources, in particular methane. The path of the renewable sources was first taken by Caviro way back in the early 1980s, producing energy from its production waste and considerably reducing the environmental impact. In 2010 the development of this division led to setting up a joint venture with Herambiente S.p.a. for the production of electric energy from the grape processing waste and from local grass clippings and pruning. PRUNINGS, NON-REUSABLE FRACTIONS 33% FERTILIZERS 44% INERT MATERIALS FOR THE INDUSTRY 12% WASTE < 1% Currently Caviro features: A thermoelectric power station fueled by biomass producing high pressure and high temperature steam to power the production processes. 3 biogas plants producing electric energy from the purification of the in-house vinasse and liquid processing waste of food companies, covering nearly 100% of the internal needs. 14 15
THE GROUP COMPANIES 560 EMPLOYEES 5 PRODUCTION PLANTS FORLÌ (wine) SAVIGNANO SUL PANARO (wine) CAVAION VERONESE (wine) FAENZA (distillery and energy) TREVISO (tartaric acid) PRODUCTION CAPACITY WINE 260,000,000 litres ALCOHOL 62,000,000 litres PRODUCED ELECTRICAL ENERGY kwh 107,500,000 PRODUCED BIOGAS Nm 3 14,500,000 WHY CAVIRO IS UNIQUE DATA OVERVIEW COMPETITIVE GROUP POSITION MARKET LEADERS IN ITALY No 1 for market share by volume and value No 1 for Tetrapak by volume and value No 3 for glass by volume No 4 for glass by value No 1 for private labels by volume and value Tavernello, No 1 for 2017 Italian wine brands reputation Over 200 awards in the last 5 years for Terragens, Romio, Terre Forti, Brumale and Tavernello ranges PRODUCTS RANGES BY REGION AND BRAND LEADERS IN FOREIGN MARKETS Tavernello is the No 1 Italian wine brand worldwide LEADERS IN THE DISTILLERY DIVISION No 2 Alcohol producer in Italy by value and by volume No 3 world producer of natural Tartaric Acid No 1 in Italy for waste water recovery from food companies ABRUZZO EMILIA FRIULI V.G. LOMBARDIA MARCHE PUGLIA ROMAGNA SICILY TUSCANY VENETO ECONOMICS Balance sheet recap (in /000) REVENUES 315,406 EBITDA 24,753 NET FINANCIAL 59,090 EQUITY 90,580 17
CAVIRO SOC. COOP. AGRICOLA Via Convertite, 12 - C.P. 125-48018 Faenza - RA caviro@caviro.it Tel. 0546/629111 - Fax 0546/629319 DALLEVIGNE S.P.A. Via del Torrino, 19-50059 Vinci - FI info@dallevigne.com Tel. 0571/902444 - Fax 0571/509960 GERARDO CESARI S.P.A. Via Luigi Ciocca, 35-25027 Quinzano d Oglio - BS info@cesariverona.it Tel. 030/9925811 - Fax 030/9923455 HORECARE Via Convertite, 12-48018 Faenza - RA caviro@caviro.it Tel. 0543/804911 - Fax 0546/629319 CAVIRO DISTILLERIE S.R.L. S.U. Via Convertite, 8 - C.P. 147-48018 Faenza - RA caviro@caviro.it Tel. 0546/623678 - Fax 0546/626470 ALCOPLUS Via Convertite, 8-48018 Faenza - RA caviro@caviro.it Tel. 0546/623316 - Fax 0546/625953 TARTARICA TREVISO Viale della Repubblica, 19/d - 31020 Fontane di Villorba - TV caviro@caviro.it Tel. 0422/304653 - Fax 0422/304684 ENOMONDO S.R.L. Via Convertite, 6 - C.P. 45-48018 Faenza - RA enomondo@enomondo.it Tel. 0546/629336 - Fax 0546/629318 19
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