Tendervino, the Italian company with the tender touch

That aptly-named company is Tendervino, a nod to the support it provides for wineries aiming to access the monopoly markets through their tender procedures. Although the company was founded just under three years ago, it benefits from decades of industry experience. Its founder and owner, Alessandro Satin, has worked on both sides of the industry in various parts of the world, including Asia. “When I moved back to Italy in 2017”, says the Tuscany-based export specialist, “I discovered that a lot of Italian producers were not able to understand the monopoly markets and therefore seize the opportunities they offered”. The company takes a two-pronged approach in its mission: it helps producers navigate the tender process required for accessing the monopoly markets whilst also providing valuable information for agents and importers so that they can understand the fragmented supply side, primarily in Italy but also in a range of producer countries.

Crucial high-level endorsement

Ultimately, it’s not just the smaller wineries that approach Tendervino: “We have found over time that larger companies also struggle to find the right partners in the monopoly markets. They may be strong in Canada but cannot find the right channels in Norway or Sweden for example”. Since founding his company, Satin has received a significant boost – he has been appointed as the ambassador for Canada and Scandinavia by the 1992-established Merano Wine Festival. “This helps me to connect with high-level producers and gain exposure for our young company” Satin says of the endorsement. Securing visibility among the myriad artisan producers across Italy is a critical boost to the business because ultimately its added value stems from introducing the monopoly buyers to differentiated wines in a highly competitive marketplace. “The standard tenders are normally for supermarket-type wines, meaning large volumes where the lower the prices the better. But not all tenders are for large volumes and very low prices. All the monopolies have different sections with differing needs – the speciality sections are where they establish their reputations and are not looking for low prices”.

Alessandro Satin, founder and owner of Tendervino, has extensive experience in the beverage alcohol market in a number of countries around the world

How the monopolies differ

Although there are similarities between the monopolies – which are increasingly working together on issues like sustainability – there are also sizeable differences. “Firstly, in Canada the importer is the province, whereas in Scandinavia private importers buy from producers then resell to the monopolies. In both cases, we have local partners because neither the Canadian nor the Scandinavian monopolies allow companies to submit to tenders on their own, they only accept submissions from authorised agents and importers depending on the markets”. There are also perhaps lesser-known differences. “In Canada, the main difference is that the tenders are often open, sometimes very open: an example might be ‘white wine from indigenous varieties from Italy’, so thousands of wines can be submitted. Also, the SAQ is the only monopoly that requests a fee for responding to a tender. Conversely, the LCBO, other Canadian monopolies and the Scandinavian monopolies are completely free of charge for the producer, aside from sending samples”.

Alessandro Satin with Helmut Köcher, the president and founder of the Merano Wine Festival

Using the on-trade as a springboard

Another major difference is that in Scandinavia, the on-trade has no links with the monopolies. “If an importer likes my wine, he can buy it. In Canada, if an agent likes my wine for a restaurant, he has to ask SAQ or the LCBO to buy the wines from the producer, so it’s not a completely free market”.  The on-trade can provide an important stepping stone for artisanal producers to enter the monopoly stores. “If a wine sells well in restaurants in Scandinavia for example, the monopolies will look at it. If an importer sells one of my producers’ wines to the on-trade, they can also download it onto the monopoly app or website. If the metrics stack up, the monopoly might choose to list it, or another wine by the same producer. The opposite is also true – if you win a tender with say your cheapest wine, an importer may choose to import another wine in your range for the on-trade”. The same two-way connections exist between monopolies: a product that is successful in one monopoly may attract attention from another.

Whatever the chosen route to market, Tendervino focuses on three main criteria: “There are a few key words and today they are the most important information you need. One is organic, another is sustainable and the third is international awards which are very important. If I’m choosing a winery, I check these three points. Obviously, we can continue if even they don’t have them, but the probability of winning a tender decreases significantly if they don’t have at least one or two of these criteria”.

Numerous routes to market

Aside from accessing the monopolies through tenders or the hospitality industry, spontaneous submissions offer an alternative route. Tendervino leverages its network of agents and importers in situ to take full advantage of this possibility. “This process is not harder than tenders, but it is longer. Here, having the right local partners is key. Monopoly buyers meet importers periodically and new wines can be presented. So if I have a new variety or a winery with a distinctive feature – the highest vineyard, say – then buyers are quite open and will issue a tender”. Alternatively, Tendervino helps respond to needs for packaging formats that producers may not directly offer: “Bag-in-box is a significant trend in the monopoly markets, particularly Scandinavia. A producer may have a great wine but doesn’t offer bag-in-box formats. So they provide the bulk wine and through our partner in Denmark, we put it in bag-in-boxes so that it can be sold to say Sweden”.

Alessandro Satin’s endorsement by the Merano Wine Festival for the Canadian and Scandinavian markets allows him to reach out to high-end Italian artisan wine producers

Endless scope for development

Looking ahead, Tendervino aims to consolidate its existing range of supplier countries and services – which also include educational programmes for companies looking to improve their knowledge of the monopoly markets – whilst also expanding its portfolio. “A lot of countries have the same problem working with the monopoly markets as Italy”, stresses Satin, whose company is now collaborating with groups in South America and other parts of Europe to help them engage with the monopolies. Similarly, there is untapped potential in the United States where many individual States still have monopolies for the sale of alcoholic beverages. The scope is endless and at a time when the world’s major monopoly markets are intent on ramping up their requirements – especially their own and their suppliers’ sustainability credentials – the need for expert support has probably never been greater.

Tendervino offers a one-stop-shop for companies looking to access the monopoly markets in Canada and Scandinavia