Wine industry intent on truly going green

The wine industry is making a concerted effort to adopt environmentally responsible practices but sees a need for better education among both consumers and professionals on many "green" issues, according to a UC Davis professor's annual surveys of wine industry professionals and executives.

"These industry leaders are very concerned that their firms authentically 'walk-the-walk' when it comes to environmental issues and that they not be accused of just 'greenwashing' their businesses," said the surveyor, Robert Smiley, director of wine studies in the Graduate School of Management.

Smiley has been surveying wine executives for 10 years and wine professionals for 17.

This year's executives survey comprises opinions and projections from 28 heads of key wine operations, ranging from growers to vintners to distributors, while the professionals survey takes in responses from 73 vineyard and winery representatives from throughout California.

Smiley presented his latest findings earlier this week during the Wine Industry Financial Symposium in Napa.

All of the executives in the survey said their firms were actively engaged in environmentally friendly business activities, such as package redesign, use of biodiesel fuel, wastewater reclamation and developing "green" building plans.

They expressed a concern over the lack of clarity in the industry and among consumers about the actual meanings of many environmental terms, such as "sustainable," "green" and "low carbon footprint," and how industry can genuinely adopt environmentally sensitive practices.

Survey respondents said rising prices for gas, electricity, supplies and transportation had significantly raised the cost of doing business across the industry at the same time that wine consumption started falling, the result of a downturn in the U.S. economy.

"Despite that downturn in sales, the majority of the wine executives surveyed said that they believe the industry will survive the current economic slump on the strength of nonrestaurant sales, particularly the moderately priced $10 to $14 wines," Smiley said.

"They are confident that the millennial generation's love of wine provides a solid foundation for the industry."

Out of the professionals survey, Smiley noted that "one of the biggest changes ... was that consumers are increasingly viewing wine as an integral part of a healthy lifestyle."

"And for the first time, these wine professionals said that they are finding consumers to be more accepting of alternative packaging."

The professionals survey, like the wine executives survey, also reflected a marked increase in businesses using sustainable practices.

Eighty percent of the vineyard representatives participating in the survey said they had used sustainable farming practices on at least part of their acreage during 2008.

And 46 percent of the respondents said they had been marketing their grapes as "sustainable" or "organic" during the current year, or planned to do so in the upcoming year.

Survey participants from vineyard operations also reported that they are reducing their use of vineyard chemicals and mechanized equipment to deal with the rising cost of inputs.

PACKAGING

Executives said they anticipated major changes in wine packaging over the next five to 10 years, with most producers using screw caps rather than corks and with less expensive wines being sold in soft-sided packages rather than bottles.

Survey participants from the winery side of the industry noted that their companies planned to introduce new, lighter-weight packaging for their wines.

The complete survey results are available online.

Media Resources

Dave Jones, Dateline, 530-752-6556, dljones@ucdavis.edu

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