Hello my dear friends! Thanks for finding me here again. We have an special topic to talk about. A new year has begun and with it new challenges await the wine industry. Let's explore what are the main defiances and perspectives of wine in 2023!
First is first, we mean 'digital communication' of course! The use of new technologies in the communication of wine has become very widespread in recent years. Wineries, distributors and stores have seen the need to adopt digital alternatives to communicate with their customers through video tastings, social networks, newsletters and wine clubs. Digitization is here to stay, so work will continue on how to connect the vineyard and its wines with public. There is a long way to go in terms of consumer segmentation. Through digitization, wineries can direct messages, connect and market their products to the consumer with more independence from distribution channels.
Events such as conferences and tastings will also gain ground digitally, in a hybrid way, which will also mean that they will be accessible from anywhere in the world. Both worlds, the online and the offline worlds, will have a more intense coexistence in 2023, which is why artificial intelligence, big data and virtual reality will have to be gradually incorporated into the industry.
With the enourmous possibilities offered by the digital era, growing and strengthening enoturism has become a much more important aspect of the industry in recent years. Wine tourism means embarking on a journey of personal discovery, towards new territories, new flavours, new varietals and experiences for customers. Yes, because wine tourism is also this: cultural enrichment. It allows enthusiasts to get close and personal with a world they love. To understand the potential of enoturism just think about the fact that, for example, in Napa Valley, one hectare of vineyard generates a weighted turnover of around $110,000 USD every year. Wine tourism is, and will be, a strategic asset for tourism and wine-producing countries.
The environmental challenges are also huge. Pressure from consumers and citizens has required winegrowers to radically change the way they produce wine. Conventional viticulture is one of the agricultural activities that consumes the most crop protection products. The French wine industry, for instance, has committed to reduce its use of such products by 50% by 2025. Over the last decade, the organic sector has been growing exponentially. It's been four years since over 11% of European vineyards were certified organic. Spain (with 113,420 ha or 32.6%), Italy (with 106,447 ha or 30.6%) and France (with 94,020 ha or 27%) together account for 90% of Europe’s organic vineyards. These three European countries are now the top three organic wine-producing countries in the world. Even Grands Crus in Bordeaux and Burgundy are transitioning to organic farming only. To achieve this more wineries around the world will need to implement alternatives to crop protection products.
Biocontrol solutions provide an alternative to insecticides and fungicides based on natural mechanisms for regulating bio-aggressors. Biocontrol is based on concepts of balance between different species. Rather than seeking to eradicate a parasite or a pathogen, it aims to limit their presence to prevent them from becoming harmful for crops. Some biocontrol techniques are already well-known: mating disruption, the use of insecticides containing bacillus thuringiensis or sulphur. These methods are partially effective in combating parasites.
Biostimulants are substances and/or microorganisms used to stimulate natural processes and plant metabolism in order to improve tolerance to abiotic stress and optimize crop yield and quality. They are particularly helpful in fighting the effects of drought. Their use continues to grow steadily. Tillage has also made a big comeback as an alternative to weedkillers. In recent years, many winegrowers have returned to this practice, which offers a more environmentally-friendly way of removing the weeds that compete with grapevines and hinder their growth. When properly implemented, this mechanical weed control method can improve the soil’s aeration, physical structure, and water infiltration. It promotes biological activity and soil life, which improves vine nutrition.
Global warming and its impacts on grapevines
Global warming is responsible for many of the problems that winegrowers are facing around the world. Early grape harvests are becoming increasingly common. Therefore, harvesters have to work in extremely hot weather, resulting in more frequent breaks and production losses. Beyond that, global warming leads to higher sugar content in the grapes which results in higher alcohol levels and changes in the wines’ aromas. Also early bud break (as early as March) is weakening the vine stock, exposing it to a greater risk of frost until May. Recurring droughts, which can potentially destroy entire vineyards, are also becoming increasingly frequent and long.
In some countries, like Argentina, viticulture is now entirely dependent on irrigation (this is prohibited in France for appellation wines). Argentinians have therefore begun buying vineyards at higher altitudes or in Patagonia, in the southern part of the country. Global wine industry trends reveal a clear shift towards the North Pole and South Pole to find more suitable areas for vineyards.
Economic challenges, a year of less
If 2020 was when the world had to deal with the medical impact of Covid-19 and 2021 was about its knock-on effect on global logistics, 2022 was the year when we started to wake up to the economic aftershocks. And that looks very much like being the major narrative in 2023. A situation where businesses are slowing investment and holding pay rises below inflation levels, and consumers feel both poorer and less certain about the future is bad news for wine which, however much the industry likes to pretend otherwise, is a luxury product, not a necessity.
Many consumers will be cutting back on discretionary spending in 2023 and wine looks vulnerable. Hospitality could be in serious trouble over the next 12 months. But it’s not all bad news with cutbacks in spending potentially working in favour of more expensive bottles.
Current trends suggest a significant portion of consumers are saving money by buying fewer bottles – but trading up to create more of an ‘occasion’ when they do drink. So, even stripping out the effects of inflation, spend per bottle could well rise this year.
no alcohol please
Another major trend: the move away from alcohol. The majority of consumers are not abstaining entirely, they’re cutting or feeling ‘sober curious’ which is the terminology of the day. Wine, clearly, will not be immune from this trend. Whoever learns how to make varietal- or terroir-specific, alcohol-free, still wine will be very wealthy indeed. This is a trend that will continue to grow – and impact wine.
Last but not least
Wine is typically a two-way battle between the forces of tradition and the forces of innovation, with the former winning out 90% of the time. Beyond the advent of screwcaps have there been any major changes in the category over the last 30 years? Well, that could change. Bottles are not just expensive but ecologically damaging to produce, heavy to transport and too big for single people or couples . Bottles are under attack from all sides. Whether the replacement turns out to be more premium bag-in-box offerings, cans or pouches is up for debate. Maybe a combination of all three. However, there are simply too many winds blowing in the direction of change for it not to happen. The time of a "wall of cans" by a retailer, a bag-in-box row, or the only-by-the-glass kind of bar may not be far off. We'll see!
And that's a wrap for today! Enjoy the rest of our first week of 2023 and let's meet again here next Wednesday! Until then... Santé!
Commentaires