The managerial team of Alinea was invited by The Financial Times to attend the ‘Made in Italy’ Summit on 12 September 2024. Hosted at the London headquarters of the Financial Times, the event gathered senior decision-makers from Italian and UK businesses and included a high-level panel that explored the key opportunities for Italy’s export sector in today’s challenging economic and geopolitical environment.
Mirja Cartia, CEO of Il Sole 24 Ore provided the opening remarks, alongside Inigo Lambertini, Italian Ambassador to the UK.
The panel was chaired by the FT’s Milan correspondent, Silvia Sciorilli Borrelli, and featured leading experts on Italian business and trade, including:
Claudia Parzani, Chair, Borsa Italia
Monica Mandelli, Managing Director, KKR
Pietro Labriola, CEO and General Manager, TIM Group
The discussion, conducted under Chatham House rules, covered areas including globalisation, contemporary merger and acquisitions strategy, and economies of scale. On the basis of the tendency of Italian businesses to be family owned, a speaker reflected that ten years ago, Italian families were reluctant to accept private equity funding, and that rather than undertaking a bid for the entire shareholding, funds are more inclined to participate though funding on a fractional basis, for example, bidding for 40 or 50 per cent of securities in order to change and transform companies so that they increase productivity and compete for a wider market share. The speaker stated that many Italian brands would benefit from this, highlighting an example of a company whose revenue increased from £350 million revenue, to £3.5bn, through having the majority of their revenue coming from international markets, for example the United States. It was commented that the international commercial momentum appears to be experiencing a shift from benign globalisation to competing powers. A key focus of the discussion examined Italian consolidation, and opportunistic choices. Another topic discussed was that of stakeholder-shareholder motivations. This ranged from insight on how to protect the essence of a brand whilst bringing it to the next level with the support of the investors, and a growing trend of incentivising employees through shared ownership, for example it was mentioned, as public domain information, that KKR have successfully implemented an ‘Employee Ownership in Action’ strategy through Ownership Works, CIRCOR and CHI Overhead Doors.
A subject that was frequently mentioned to Alinea Customs in discussion was that of Brexit, and increasing access to the market of the United Kingdom through trade facilitations. The requirement for further education on compliance with the UK-EU Trade and Cooperation Agreement was emphasised, for example, several olive oil brands identified that since the United Kingdom had left the European Union they had ceased trading with their UK customers, on the basis of administrative hurdles. Whilst it is recognised that for certain economic operators who trade in products of animal origin; for example meat, fish and dairy products, (see Alinea Customs’ page Importing Products of Animal Origin in the United Kingdom) the time in administration and costs may be increased due to the requirement for products to be accompanied by an export health certificate, for other industries that trade in goods of Italian origin, the additional costs should not exceed that of a customs declaration on either side – e.g. around £90 in total per movement. There will also be a requirement to register for a Registered Exporters code (REX) via the European Commission and apply this code as part of a statement on origin to all invoices made out to clients in the United Kingdom.
The comprehensive discussions that drew insight addressing commercial strategy, finance, business leaders and international diplomacy provided unique strategic insight as well as the opportunity for many Italian brands to meet in person with private and institutional funds, debt finance facilities, and service providers.
The ‘Made In Italy’ Summit hosted by Il Sore 24 Ore, the Financial Times and Sky TG24 takes place in 1 – 3 October 2024: https://24oreventi.ilsole24ore.com/made-in-italy-summit-2024/
For advice on entering the UK market, please contact customs@alineacustoms.com
