Sustainability in Wine Industry: Do You Really Need It?

Global Wine Industry Overview

“Wine is a global industry, but its provenance still distinguishes it.” Revealed by Armand

Gilinsky, Sandra Newton and Rosana Fuentes Vega, the authors of the academic article

Sustainability in the Global Wine Industry: Concepts and Cases. The ‘Old World’ countries

account for an estimated 64% of the export market share (e.g., Italy, France, Spain, Portugal, and

Germany), while US wine enterprises account for an estimated 5% of the global market. People

began to have a demand for wines from the new world during the first ten years of the twentyfirst

century, as demand for old world wines decreased due to changes in consumers’ lifestyles

and preferences. The authors also stated that, from 2002 to 2007, winemakers all over the world

tried to gain a competitive edge by putting in place EMS (Environmental Management Systems)

and making statements about being sustainable.

Sustainability in Global Wine Industry

Environmental shocks in both the old and new worlds, such as rising energy prices, water

scarcity, increased worries about chemical exposure, and climate change, have hit the global

wine industry hard. In order to cope with these difficulties, the winery’s management and owners

will need to formally establish a business case for sustainability that involves numerous parties

and groups. Sustainable practices, such as product innovation, pollution reduction, and natural

resource management, can be prompted by stakeholder pressure. The potential for long-term

economic advantage through environmentally responsible process and product innovation grows

in tandem with the size and complexity of an environmental problem. Potentially increasing the

company’s bottom line, these changes are both process and product enhancements.

When running a business, it’s important to find the “sweet spot” between generating a healthy

profit and minimizing the company’s negative effects on the community and the environment. A

prosperous business understands the influence its supply chain, operations, products, and

services have on society and the environment and takes measures to mitigate any unfavorable

results. This can include measures like lowering emissions and trash output, increasing

production output per unit of input, and safeguarding against stockouts in the company’s own

supply chain.

These are the top four countries for wine production: Rank: 1. Italy, 2. France Finally, in fourth

place, we find Spain, followed by the United States of America. When compared to the other

4

countries on the list, Italy has the highest output of organic wine. From 1995 to 2013, the total

area of France’s organic vineyards grew from 4,854 hectares to 29,510 hectares. Spain is also one

of the forerunners in organic winemaking, thanks to its sustained efforts in the field. For Spain,

the “green revolution in the winemaking” started in the year 1970. An additional three thousand

hectares were added to the organic vineyard itself in 2010. But despite the fact that the United

States is classified as a new world country, a sizable number of producers participated in the

Sustainable Winegrowing Program (SWP). Around 1,237 California vineyards joined SWP in

2011 because they were convinced that financial, environmental, and social returns could be

expected from such an endeavor. The Sonoma County Winegrowers unveiled their “three-phase

plan” on January 15, 2014, with the goal of becoming the first entirely sustainable wine region in

the United States by 2019. This gathering demonstrated the significance of sharing information

on environmental management and sustainability strategies within the regional wine industry.

Concepts

Sustainable practices are hard to put into place in the global wine industry because making

money is the most important part of a business, and many producers think that being sustainable

will cost them more. The principles of 1. Perceptions of Sustainability, 2. Perceived Benefits of

Implementing Sustainability, and 3. Location Effects are ones that Producers have to know

about. perceptions of sustainability, such as knowing what environmental management systems

can do for you (EMS). Capabilities for process innovation and execution are at the heart of the

EMS. They connect cost advantage and best practices. On the other hand, one of the things that

people think is good about sustainability is that it lets businesses make products that are unique

or different from those of their competitors. Sustainability can give businesses a set of skills that

make it easier to use some product development breakthroughs. This is especially true for

smaller businesses. When people go to a winery and see a sustainable wine, they are likely to

think that it is different and new compared to other wines of the same type. Another important

factor is the effect of where something is. Wineries have the chance to make their product stand

out in terms of both its quality and the extra money it can bring in because of this. The country

where the grapes came from could be a reason for this difference. For example, Spanish

winemakers could market their product by pointing out that it comes from Spain and is made in

an organic way. This would show that their goods are different from those of their competitors.

Cases

Spain

Bodegas Pirineos Ltd was established in 1964. This winery’s management team is committed to

sustainability, which includes social responsibility, agricultural needs, innovation, sustainability,

and environmental stewardship. The effect was positive because human resources were more

driven, and people began to live more sustainably outside of work. Because to the practice of

sustainability, the relationship between Bodegas Pirineos Ltd, society, and stakeholders has

improved.

United States

John Williams, the owner and winemaker of Frog’s Leap Winery in California, began managing

his winery and tasting room in a sustainable manner back in 2000. He invested in organic and

biodynamic farming, solar power, and year-round employment benefits for his employees. His

tasting room is LEED certified as well. They discovered that their inventory and debt had

increased over the course of the year. As a result, they developed a wine-by-the-glass program

and a club member program in order to increase their cash on hand. Aside from profitability,

Williams has been developing long-term, sustainable strategies to assure the handover to the next

generation.

Conclusion

To pass on to future generations a positive legacy is both the first and most fundamental premise

of sustainable development as well as its top priority. During the beginning stages, developing

sustainability in the wine industry can end up costing a significant amount of money.

Nevertheless, it ensures a profit over the long term for subsequent generations. In the not too

away future, an increasing number of winemakers will convert their vineyards or tasting rooms

into those that are either organic, biodynamic, or sustainable. People working in the wine

industry can gain a better knowledge of what actions they could take to ensure the greatest

results by examining these situations.

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