Italy enters the top 10 of nations with both the greatest soft power in the world and among those that have improved the most year on year, according to the Global Soft Power Index 2022.

After the decline from 11^th to 19^th place last year, this year Italy gains nine positions to claim 10^th place. Italy's current soft power is consistent with its economic power, in fact Italy is the 8^th nation by GDP in the world. 

Last year’s drop in rank was largely due to the dramatic images from Italy which spread around the world in 2020, following the outbreak of the pandemic. At the time, Italy suffered the misfortune of being the first major Western country affected by COVID. A country that initially did not seem able to react effectively.  

In the following year, the country reacted with great determination and improved its management of the pandemic, achieving great success. 2021 was a special year for Italy, as The Economist magazine decreed Italy the country of the year. In fact, Prime Minister Mario Draghi and his government contributed to the strong recovery of the economy. The victory in the European football championships, the final at Wimbledon, the good performances at the Olympics, and the success of Maneskin at Eurovision have further contributed to Italy's soft power around the world. 

This strong recovery is reflected in the improvement by 6.4 points in the Global Soft Power Index 2022. Only the USA, China, and the UK have performed better than Italy. On the other hand, this year's record recovery follows last year's collapse. These strong variations indicate that the Italian nation brand is not as solid as it should be. It is subject to events rather than the identity of the country. In fact, in the Brand Finance Nation Brands report published every year in the autumn, Italy regularly ranks lower on brand strength than both its traditional competitors and much smaller nations such as Belgium, Ireland, or Austria.  

The current push given by Prime Minister Mario Draghi, and the great desire of Italians to contribute to the country’s development, will certainly strengthen the nation brand more and more. 

Interview with Nicola Bertinelli.

How do you leverage Italy's soft power as a leading country for food to enhance your own story telling?

Made in Italy has always been a guarantee of quality in various sectors: fashion, automobiles, tourism, food and wine, and lifestyle. This renowned reputation has been built over thousands of years. In the agri-food sector, the passion of our artisanal producers has shaped incredible Geographical Indication products that are now known all over the world. One of these is Parmigiano Reggiano, which was invented by monks in medieval times and then developed by generations to the present day. Little has changed since then, as still today the cheese is produced with only three ingredients (milk, salt, and rennet), without additives and preservatives, and with a production technique that is almost identical to that from centuries ago. Parmigiano Reggiano is therefore one of those products that have contributed to shaping the fame of "Made in Italy". We can consider it a very long-term investment, which was started nearly 1,000 ago, and which today brings value to our country and to Parmigiano Reggiano. 

How does Parmigiano Reggiano enhance Italy's reputation within their trade relations and global marketing strategies? 

The promotion of Parmigiano Reggiano has always been focused on communicating the values ​​of the product and the underlying brand: environment, territory, animal and human well-being, and nutritional qualities of our cheese. To this end, communications and press agencies have been activated in 16 foreign countries, and we collaborate directly or through the main exporters with the major world distribution chains. 

This allows us to have contact with many people, governmental and non-governmental organisations, entrepreneurs, trade associations, and other Consortia. A really long list! These meetings obviously have a positive effect on the reputation of our country because it is impossible not to fall in love with Parmigiano Reggiano. And I am not referring only to the taste and its nutritional qualities, but also to its millenary history and the Area of ​​Origin which attracts hundreds of thousands of tourists every year. This tourist flow generates value not only for the dairies but for the whole region. 

In 2021, the Parmigiano Reggiano supply chain generated a value of €1.7 billion for our dairies and our breeders, a community of about 50,000 people spread over the provinces of Parma, Reggio Emilia, Modena, and a part of Bologna and Mantua. 

Italy has a rich heritage and culture, which is well-known across the world. This is helped by several protected and authentic products made in Italy. What role does having a PDO status play in Parmigiano Reggiano’s reputation among key stakeholders? 

The system of European PDOs was fundamental to provide common rules recognised all over the world. For producers, making a Geographical Indication product means respecting strict quality and traceability parameters, but also having the right recognition for their work, as well as legal protection that extends to the entire European Union and to other states in the world. For consumers and stakeholders, the symbol of the PDO (Protected Designation of Origin) is a distinctive element that immediately provides numerous and essential pieces of information about the product: firstly, where it comes from – the Area of Origin, secondly, its link with the region, thirdly, that it is produced with artisanal techniques, and finally that it has a proven history. 

So, to bear the designation “Parmigiano Reggiano PDO”, the cheese must be made adhering to strict rules. It must be produced in the Area of Origin, which includes the provinces of Parma, Reggio Emilia, Modena, Mantua to the right of the Po River, and Bologna to the left of the Reno River — a surface of approximately 10,000 km². 

Parmigiano Reggiano is so strongly bound to its Area of Origin that no other place in the world can produce the same product — even if the same production techniques were used. 

Going back to the point of counterfeiting, using the term ‘parmesan’ to broadly describe non-Italian hard and grated cheeses is not compliant with the production specifications of Parmigiano Reggiano, and is in direct violation of the EU’s Protected Designation of Origin. In 2008, the European Court of Justice made a decisive ruling that only cheeses bearing the PDO “Parmigiano Reggiano” can be sold under the denomination “parmesan”. This was also a victory for consumers who receive a strong guarantee or traceability and will be free from misleading denominations on the market. 

Unfortunately, the laws that classify and protect Parmigiano Reggiano within the European Union are diluted overseas, opening the door for misusages of the term and imitation cheeses within the United States and other countries.   

Global Soft Power Index 2022

Explore the findings of the world's most comprehensive research study on perceptions of nation brands, presented in a downloadable report and an interactive dashboard.

Italy has retained its position as the world’s 9th most valuable nation brand, posting a 12% increase to US$2.0 trillion. When looking at nation brand strength specifically, however, the nation has dropped from 28th to 32nd with a Brand Strength Index (BSI) score of 68.3 out of 100. Looking at BSI scores, Italy only increased 1.0 point year on year. In this respect the nation’s performance is stronger than that of the US, the UK, France, Japan, India, China and Germany, which are ranked higher, but have lost between 8.0 to 2.0 points.

During 2020, Italy’s scores slightly increased across the Familiarity, Overall Influence, Reputation, Business & Trade, Governance, International Relations, Media & Communications, and Education & Science metrics. The country’s drop in the BSI ranking is entirely due to the perception of the nation’s management of the pandemic. This perception is the result of bad luck, management errors, a large gap between expectations and results, and poor communication skills.

Italy was the first Western nation to see an outbreak of COVID-19, which brought worldwide attention and created mixed feelings towards Italians. Italy has been mocked and garnered a lot of criticism, but also strong empathy. However, the misfortune of being the first Western nation to suffer heavily from the effects of the virus and the emergence of serious organisational errors in the management of the pandemic led to unfavourable scores. The Italian nation brand, like that of other major nations, is perceived negatively overall as it did not live up to expectations with its pandemic response. It should be noted that Italy has one of the best health systems in the world and the first outbreak occurred in Lombardy, one of the most organised and richest areas in the entire continent of Europe.

Additionally, there is a chronic inability to effectively communicate the Italian brand image. The Italian government itself, aware of reputational issues, commissioned a communication campaign in June 2020 to relaunch Italy's image after the pandemic. Unfortunately, this was hampered by poor administrative efficiency which led to ineffective results. However, 2021 looks to be a great year for the Italian brand image. Prime Minister Draghi, who has a good reputation following his presidency of the ECB, is managing to effectively lead the Italian government. European partners and international heads of state express great respect for Mr. Draghi. In addition to what is called the "Draghi effect", a number of firsts have been achieved that have contributed to the good image of Italy in the world. The victory of the Italian football team at Euro 2020 and the success of the rock group Manneskin who, after winning Eurovision 2021, began to climb the charts around the world are the two most notable.

The good performance of the the Italian image in 2021 will be captured in the survey that Brand Finance will shortly be conducting for the Global Soft Power Index and Nation Brand 2022 rankings. In the meantime, we hope that the Italian government will take full advantage of this good period to better communicate the country's brand image

Interview with Nicola Bertinelli

What effect does Italy’s reputation for delicious food, high quality products, and rich heritage, have on Parmigiano Reggiano as a popular cheese worldwide?

I think there is a symbiotic relationship between the reputation of Made in Italy and Parmigiano Reggiano. Made in Italy means excellence, tradition, and an everlasting bond with a specific territory that is the Belpaese.

Similaraly, Parmigiano Reggiano has always been an expression of its land of origin. Monks were the first producers of Parmigiano Reggiano, driven by the quest for a cheese featuring one main characteristic: to last for a long time. This feature has been Parmigiano Reggiano's fortune, resulting in it travelling around the world for centuries to become an authentic expression of what we call today the Made in Italy agribusiness.

Parmigiano Reggiano is undoubtedly a traditional food but also one that is projected towards the future. It is an authentic precursor of current health trends thanks to its intrinsic qualities - naturally rich in nutrients and totally free from preservatives. What we call Made in Italy is the sum of many qualities and each one is represented by a product, a craftmanship, a tradition. Parmigiano Reggiano is simply all of this and is therefore inextricably linked to Made in Italy. They nourish each other.

What role does having a Geographical Indication play in Parmigiano Reggiano’s brand building and your reputation among key stakeholders?

Parmigiano Reggiano is a cheese with Protected Designation of Origin (PDO) status, i.e. a product that, based on its distinctive characteristics and its tie to the area of origin, is safeguarded by a system provided by the EU to protect consumers and producers alike. The EU’s PDO symbols on Parmigiano Reggiano packaging provide consumers with clear and concise information about its origin and authentic, high-quality production processes. The PDO system also benefits the rural economy by boosting farmers' income and creating incentive for people to live in more remote areas.

Thanks to its PDO status, Parmigiano Reggiano is protected against: any misuse, imitation, or evocation; any other false or misleading information about the provenance, origin, nature, or essential qualities of the product; any other practice likely to mislead the consumer about the product’s true origin; and commercial use of a registered name by products not covered by the registration if they are comparable to the authentic product or if their use exploits the reputation of the protected name.

As established in 2008 by the European Court of Justice, only Parmigiano Reggiano PDO cheese can be sold under the "Parmesan" denomination in Europe. This historic regulation not only protects PDO producers, but also consumers, who are guaranteed authenticity and traceability by being protected from misleading names in the market. Unfortunately, the laws that classify and protect Parmigiano Reggiano within the European Union are not globally observed, as both Parmigiano Reggiano and “parmesan” can coexist on the same shelf in some countries outside the EU. These products are often mistaken for authentic PDO products by consumers.

With Italy being severely hit by the pandemic at the beginning of 2020, how has the Italian government and Italian brands, such as yours, overcome these difficulties in order to prepare for the new normal? 

The pandemic has not disrupted the activities of the Consortium. We immediately geared up to continue our quality controls in order to continue safeguarding and protecting consumers. We also continued our control activities on the markets with a special focus on protection at the international level.

In addition, the market has rewarded us during this period of crisis and uncertainty. Data has shown that our strong brand and solid positioning with consumers has acted as the best antidote to curb the commercial impacts of Covid-19. We now need everyone’s contribution to protect the product and prevent the risks associated with an extremely uncertain autumn both in Italy and abroad.

Parmigiano Reggiano closed the first half of 2021 with exceptional results, with a volume sales increase of 12.5% compared to the pre-pandemic period – 17,239 tons against 15,330 in 2019. This is an extraordinary achievement, taking into consideration both the pandemic’s impact on consumers’ spending capacity, and, subsequently the supermarket trolley, but also all the other threats coming from abroad: Brexit, the former US duties, and the “Italian Sounding” phenomenon that feeds a 2 billion euro parallel market.

Brand Finance Global Soft Power Index 2021

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Brand Finance Nation Brands 2021

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