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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