BERLUCCHI SUSTAINABILITY REPORT - 2021

OUR STORY IN THE MAKING ACCOUNTABLE BY NATURE

STEWARDS OF THE LAND TREASURE TROVE OF TALENTS BUILDING RELATIONSHIPS

THE VALUE CHAIN

From harvest to bottle, to hospitality

and the long ageing period in the cellar. In cellar ageing involves the traditional steps of the classic method (such as remuage and disgorgement). This is when the experience gained through years of work is put into practice and the process culminates in the labelling and final packaging of the bottle , ready for distribution. The last step is marketing to all the places that Guido Berlucchi reaches through a network of sales represent- atives with whom we have built up strong relationships of trust over the years.

We do not only operate a winery, we also work in the hospitality industry, managing the Historic Cellar and the an- cestral Palazzo Lana in Borgonato. The different stages of the value chain of these two businesses, which we describe below, generate impacts that we have measured and which you will find in the second part of the report (page 86).

PRODUCTION AND MARKETING OF FRANCIACORTA

HOSPITALITY

tainable Viticulture Protocol (in Italian Protocollo Berlucchi di Viticoltura Sostenibile - PBVS) , which lays down the rules for working with the vines and which is also shared with the grape-growing estates. The harvest is the most delicate aspect of produc- tion. Grape harvesting really depends on the weath- er conditions and is one of the keys to achieving high product quality. To preserve the quality of the grapes, they are harvested in a tight timeframe, and is very labour-intensive. The harvest is followed by the classic method wine- making process : a few months later, the wine is bot- tled to begin the secondary fermentation in bottle

The visitor hospitality business at the historical head- quarters is complementary, as it plays an important part in promoting our business values. Guests are introduced to the Guido Berlucchi operations and history , as well as to the winemaking processes and the whole world of Franciacorta. This first-hand ex - perience raises awareness and makes them choose more carefully and consume more consciously. This activity takes place in the Historic Cellar, built in 1680 and used continuously since then, in the ageing cellars built from 1964 onwards to house the bottles being aged, and in the winery facilities, where our staff give guests the best possible visitor experience. Palazzo Lana Berlucchi, purchased in the late

1400s by Guido Berlucchi’s ancestors and preserved with great care and respect by the Ziliani family, is opened only for special occasions. Today, the Palazzo is a fully-fledged estate museum and is listed in the ADSI register of Historic Resi- dences. In addition to carefully preparing the tour itinerar- ies and putting together the information provid- ed during the tours , we make this special location available to the world of food and wine and culture.

Our winemaking business focuses on the produc- tion of classic method Franciacorta wine. We care- fully weigh up every agronomic decision: we do not use rigidly imposed templates and plans, we ration- ally examine every single aspect, adapting and shap- ing it to best suit the climate and agronomic context. The first important step in Berlucchi’s value chain is procuring the raw material - grapes . We source these from our own vineyards and by buying grapes from partner winegrowers. We support them throughout the entire processing cycle to ensure that they meet the same high quality standards that we require for our own production. To monitor this fundamental process, Berlucchi has prepared a Berlucchi Sus-

VALUE CHAIN OF WINEGROWING PRODUCTION

HOSPITALITY VALUE CHAIN

PRODUCTION

PROCUREMENT

PRODUCTION

PROCUREMENT

MARKETING

SERVICES PROVIDED

Harvest involving more than 400 people, counting direct labour and services companies. Classic method winemaking and bottling. Cellar ageing. Preparing final bottle.

Direct cultivation of 115 hectares. Managing relations with partner winegrowers who farm 450 hectares. Packaging materials.

Hospitality materials. Facilities maintenance services. Services for tours. Approximately 30 suppliers,

Developing tour itineraries. Training guides (8 qualified guides). Dedicated pages on the website and social media.

About 4 million bottles sold. Economic value generated over 47 million euros. 137 sales representatives and 4 area managers in Italy. 30 countries of distribution with 2 area managers.

Tours of the winery. Events organisation. 12,000 people visited the winery in 2021, in a 9-month opening period (compared to some 6,000 in 2020 and 20,000 in the pre-Covid period).

all from Lombardy - 96% of them from the province of Brescia.

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