Wine industry players are under increasing pressure to integrate sustainable development. Discover why it has become essential to remain competitive in the global market.
29 August at 17:00
ENQUĂŠTE V&S NEWS Sustainable Development in Wine: Luxury or Commercial Necessity?
Wine buyers, including monopolies, importers, and retailers, are becoming increasingly demanding regarding their suppliers' sustainable development policies.
By Anne Burchett, V&S News Correspondent in the UK
A roundtable at Wine Paris & Vinexpo Paris explored the expectations of retailers and, more importantly, how to meet them in order to stay competitive. The panel included: Gad Pettersson, Director of Sustainable Development for the Supply Chain at Systembolaget; Beverly Tabbron, Buyer and Quality Manager at the British importing agent Hallgarten & Novum; Simon Mason, Director of Sustainable Development at The Wine Society; Justin Howard-Sneyd, Trustee of the Regenerative Viticulture Foundation; and Eudes Morgan, CEO of Nicolas. All confirmed that sustainability is increasingly becoming a criterion for their wine purchases. According to Justin Howard-Sneyd, it is urgent to develop new protocols if the wine industry is to exist in 500 years.
All the participants emphasized the importance of information sharing, whether between their suppliers, among themselves and their suppliers, or with other market stakeholders. Facilitating this exchange is the role of organizations like the Sustainable Wine Roundtable (SWR), which brings together all industry stakeholders. The SWR also aims to standardize sustainable development data from one marketer to another and from one country to another. Among its distributor members are, of course, British companies (Berry Bros. & Rudd, Bibendum, Direct Wines, Lidl GB, Majestic Wines, Marks & Spencers, Naked Wines, The Wine Society, Waitrose), but also Ahold Delhaize, Alko, Hans Just Group, Systembolaget, and Whole Foods Market. "Our commercial arguments can only accelerate change," insists Gad Pettersson. "Retailers are working together, and they have the power!"
Systembolaget Collaborates with Other Scandinavian Monopolies
Systembolaget (450 stores) works with around 1,000 providers who supply 20,000 references for an annual volume of 210 million liters of wine, 25% of which is already organic. Gad Pettersson highlights the ambitious goals of the Swedish monopoly, aiming for a 50% reduction in greenhouse gas emissions between 2019 and 2030, and carbon neutrality by 2045. These goals are part of a joint agreement with other Scandinavian monopolies in Norway, Iceland, Finland, and the Faroe Islands. How to achieve carbon neutrality by 2045? Packaging, which accounts for about 25% of the carbon footprint of a bottle of wine, has been Systembolaget's top priority. Transportation is another area to be addressed. Most importantly, the next focus is on the product itself and its production methods. According to Gad Pettersson: "There will be commercial opportunities in Sweden for those who have both the skills and the willingness to change how they produce wine."
The Wine Society Promotes Its Suppliers' Commitments to Its Customers
The Wine Society's historic mission (250,000 members) is to "champion the joys of good wine today and for tomorrow." For Simon Mason, environmental commitment is the logical extension of this motto. While quality remains a non-negotiable condition for The Wine Society's buyers, sustainability indicators, divided into three categories, have been added to the supplier evaluation with significant operational implications for buyers, which is a new development: 1) Packaging. Priority is given to lighter bottles; 2) The supply chain must be as ethical as possible by 2030, with producers required to accept a code of conduct; 3) Data sharing and analysis: data will be collected from producers and shared with consumers. The Wine Society aims to inform consumers to encourage them to choose sustainable wines. The ecological approach of some suppliers is highlighted on Instagram. To achieve this, The Wine Society plans to work hand-in-hand with its suppliers. A new portal dedicated to them has been set up to share best practices, and a series of webinars providing access to the best sustainability experts is in progress. Finally, a climate and nature fund will replace carbon offsetting and will finance initiatives from selected producers.
Hallgarten & Novum Awards Medals to Its Suppliers
The British import agent sent out a detailed questionnaire covering everything from water management to social responsibility to all its suppliers, who were then ranked gold, silver, bronze... or not at all. These results were shared online and in the catalog for Hallgarten & Novum's annual tasting event for its clients in February 2024, with the idea of encouraging improvement, information sharing, and helping smaller producers improve. As with The Wine Society, bottle weight is a significant point of attention.
Nicolas Co-Finances Environmental Evolution
Nicolas, France's leading wine retailer network, takes a holistic and patient approach, based on the quality-progress-trust triptych. Sustainable development is costly, especially for small producers, and Nicolas supports their commitment by showcasing them on the "Les Engagés" page of its website and through a research fund financed by the sale of recyclable paper bags (20 cents) that have replaced free plastic bags. The success stories are then shared with consumers. Eudes Morgan also emphasizes the importance of maintaining the trust of their suppliers, praising their professionalism and dedication in often difficult circumstances. Like his British colleagues, he underscores the value of sharing best practices.