Viticulture – the cultivation and harvesting of grapes – is increasingly becoming threatened by climate change as it impacts negatively the quality of wine. Regions around the world that are steeped in tradition and heritage of certain wines have been affected, as global warming indiscriminately affects all wine-makers. According to Miguel Torres, an expert in winemaking, “climate change is the greatest threat for the wine business in general, and for winegrowers in particular” as climate has a higher impact over the quality of wine than soil characteristics or even variety. For example, in Burgundy, the cultivation of pinot noir grape has solidified the region’s monopoly on red Burgundy wine, yet there could come a time when the region may no longer bear pinot noir grapes; since international trade agreements have strict requirements around geography and winemaking practices for specific French wines, this could mean that the wines we have today may not exist in the future. In the new world, predominant wine producing regions like California have also been exposed to the effects and future risk of climate change. Wine grape growers have had to harvest their crops 4-6 weeks earlier than what was normal 27 years ago in the western US, impacting the character of the fruit and flavor of the resulting wine. One such company that has been heavily affected by climate change is E&J Gallo, the world’s largest family-owned winery, with fifteen wineries throughout California and Washington and over 23,000 acres of vineyards across the state of California.
Founded by brothers Ernest and Julio Gallo in 1933 in Modesto, California, E&J Gallo operates with three objectives in mind: environmental sustainability, social responsibility, and economic viability. Despite rising temperatures, declining precipitation, milder winters with greater pest pressure, and an increase in extreme weather events, such as the devastating wine country fires of 2017, have been met with an unwavering commitment to sustainability and innovation by the wine behemoth. As a major investment of the business is real estate, the company has created strategic partnerships in technology and research companies to understand how to minimize resources being used on the land while producing at a high yield and quality. E&J Gallo excels at cost cutting sustainable measures, understanding different customer segments, and producing high quality wine. However, as climate change affects wine producing regions and thereby the available portfolio of wines, E&J will need to leverage their existing customer insights to expand the types of wines being produced. As customers become more discerning in terms of wine, E&J Gallo can seize this opportunity to create more blends, which can also combat against regions that are more affected by climate change.
Wine producers have three main variables that can be currently utilized to address the issue of climate change: changing vineyard location, changing grape varieties, and changing winemaking practices. E&J Gallo has already begun to diversify their vineyards in terms of region and climate in order to reduce risk exposure. On the other hand, new infrastructure would need to be set up for new vineyards, and if future wine producing regions become farther and farther away from existing regions, it could lead to a reorganization of distribution channels – the development of a new vineyard will always be heavy investments in both time and capital.
So what is E&J Gallo doing about it?
The manufacturing of fertilizers and pesticides contribute a great amount to greenhouse gas emissions. Furthermore, the decomposition of these chemical products are complex and often damage the surrounding environment, reducing biodiversity. E&J Gallo have committed to minimizing the use of fertilizers and pesticides and switching to natural forms of pest control such as sheep, falcons, barn owls and other alternative.
E&J Gallo has also adopted renewable energy practices by employing 10 acres of solar panel fields as well as carbon neutral energy sources such as biofuel from grape skins.
Finally, E&J Gallo have been advocates of recycling glass, another process that contributes greenhouse gas emissions. E&J Gallow diverts 175,000 tons of glass from landfills annually, accounting for 30% of all recycled glass in California.
Can they do better?
Reduce. Reuse. Recycle. Rethink.
E&J Gallo definitely has room to continue innovating on their practices to address the threat on their industry. As a major player in the industry, the company has the opportunity to share its technology and practices with competitors in the industry to reduce the effect of climate change overall. Not only will their best practices be useful within the wine industry, but across the agriculture industry in general Perhaps take a page out of Phillip’s playbook and lobby for mandatory sustainable viticulture practices, while licensing their technology to competitors.
Although E&J Gallo is already doing much in the department of Recycling, they can move in the direction of reducing and reusing. Can wine be sold in bigger batches? Are there alternative materials that can be used to ship the wine? Can the bottles can be reused locally? Can the entire process of bottling be rethought out? Can they use marketing to change people’s perception of boxed wine?
E&J Gallo and the wine industry as a whole is facing huge reductions in production in the face of climate change. Let us take a moment to think back to all the great times we’ve had in the past that involved wine…so if nothing else, can we at least save the booze?
Sources:
https://www.instituteforsupplymanagement.org/files/Education/E_J_Gallo_Winery_Mahesh_Mistry.pdf
http://www.gallo.com/files/EJGallo_SustainabilityReport_2019.pdf
http://www.gallo.com/files/Gallo-Company-Fact-Sheet-2017.pdf
Jones, Gregory & White, Michael & R. Cooper, Owen & Storchmann, Karl. (2005). Climate Change and Global Wine Quality. Clim Change. 73. 319-343. 10.1007/s10584-005-4704-2.
As a Californian who has lived near the state’s primary wine growing region (Napa/Sonoma), climate change has also caused massive destruction from uncontrollable wildfires (caused by rising temperatures and draught). In 2017, for example, in the wine region killed over 40 people and caused $14 billion in damage – including wiping out many vineyards and severely impact viticulture in the region.
Interesting article! Indeed we see that because of climate change, regions which were considered “ideal” for certain grapes are now sub-optimal.
On the other hand, this gives the opportunity to new regions to develop a (sparkling) wine business. Belgium, which is north of France, has seen a growing number of pinot noir grapes to produce a sparkling wine and they are considered of very good quality.
great article on another giant industry that is currently impacting the conversation of climate change. i was wondering how this transpire into their sales? do customers purchasing wine consider environmental responsibility as a priority feature (vis a vis known branding, region that produces the wine – as they diversify the risk & wine growing area, is there a threat of lower quality control?)
It seems that there is an important increasing demand for biological wine, particularly in France. I was wondering if this is already having or is expected to have a significant impact in the industry environmental footprint.
A very interesting paper I worked on before was about chemical leasing, where instead of having a business model of selling fertilizers and pesticides, the chemical company would become a partner with the farmers and only provide exactly what they needed, reducing the chemical production (benefit for the supplier) and the usage (benefit for farmer and environment). I think if applied in general, chemical leasing can be a milestone in sustainability.