Sustainability: Programs and communication in the leading wine producing countries

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1 Sustainability: Programs and communication in the leading wine producing countries Bastian Klohr, M.Sc. Prof. Dr. Ruth Fleuchaus, Prof. Dr. Ludwig Theuvsen III Seminario Internazionale di Marketing del Vino November 9 th 2012 San Michele all Adige

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3 What does sustainability mean? In a forest only as much wood should be logged as could grow back in the same time. Hans Carl von Carlowitz ( ) Sustainability means a good life and successful economic activity which is socially equitable and long-lasting at the same time Sustainability and its communication in the leading wine producing countries 11/09/2012 page 3

4 Three pillars of sustainability I Sustainability and its communication in the leading wine producing countries 11/09/2012 Environmental Dimension Economic Dimension Social Dimension Sustainable Business page 4

5 Three pillars of sustainability II socially equitable Sustainability and its communication in the leading wine producing countries 11/09/2012 page 5

6 Approaches in the wine business The Franconian wine growers want to become a leader in sustainability. Champagne producers use various methods to reduce their consumption of water. By 2020 we want to cut our CO2 emissions by 30% Miguel A. Torres The OIV continues to develop guidelines for the application of the concept of sustainable development Sustainability and its communication in the leading wine producing countries 11/09/2012 page 6

7 Evaluation of sustainable entrepreneurship Measurability Objectivity Transparency Traceability Credibility in contrast to subjective, unaudited statements of producers or distributors page 7

8 Analyzed aspects of the certification systems Organization, which is managing the program Evaluation of sustainability; Criteria Implementation of the three pillars (environmental, social and economic dimension) Control mechanism Relevance in the national wine business Development of the program Consumer communication page 8

9 Sustainability certifications in the international wine business Sustainable Winegrowing New Zealand Entwine Australia Sustainable Wine South Africa FairChoice Certified Sustainable Wine of Chile Certified California Sustainable Winegrowing page 9

10 Evaluation of Sustainability Sustainable Winegrowing New Zealand Entwine Australia Sustainable Wine South Africa FairChoice Certified Sustainable Wine of Chile Evaluation of sustainability Recognition of externally audited environmental certification programs Recognition of externally audited environmental certification; Carbon Footprint Criteria covering viticulture, biodiversity and resources; [Carbon Footprint] Criteria covering the entire production process; Carbon Footprint Criteria covering viticulture and vinification plus social aspects Covered dimensions Environmental Environmental Environmental [Social] Environmental Social Economic Environmental Social Certified California Sustainable Winegrowing Criteria covering viticulture and vinification plus social aspects Environmental Social Insufficient realization of sustainability page 10

11 Control mechanism and relevance in the national wine business Sustainable Winegrowing New Zealand Entwine Australia Sustainable Wine South Africa FairChoice Certified Sustainable Wine of Chile Certified California Sustainable Winegrowing Control mechanism No separate audit No separate audit Third-party audit Third-party audit First self-assessment; thereafter third-party audit First self-assessment; thereafter third-party audit Relevance 95% of the national wine business 43 wineries many vineyards 85% of the WSB certified wines 4 wine producers (Germany, France) 40 wineries started the implementation 51 wineries and vineyards Third-party audit is crucial for credibility. Sustainability and its communication in the leading wine producing countries 11/09/2012 page 11

12 Consumer communication Sustainable Winegrowing New Zealand Entwine Australia Sustainable Wine South Africa Usage of the logo in marketing materials and on the bottle FairChoice Certified Sustainable Wine of Chile Certified California Sustainable Winegrowing Usage of the logo on the bottle is permitted. Consumers need information to be aware of sustainability This can affect the buying decision Sustainability and its communication in the leading wine producing countries 11/09/2012 page 12

13 Best practices examples for communication of sustainable activities Branding and positioning of the winery Added value for specific products page 13

14 Bodega Miguel Torres Source: page 14

15 Bodega Miguel Torres Source: page 15

16 Bodega Miguel Torres Source: page 16

17 Wolf Blass Green Label Range launched in 2009 Recyclable plastic bottle (PET) Sustainable Statements Weight reduction Reduction of greenhouse gas emissions Recommended retail price: ~10 Source: page 17

18 Wolf Blass Green Label Source: page 18

19 More sustainable wines Source: Source: Own picture page 19

20 Yealand Estate Source: page 20

21 Yealand Estate Source: page 21

22 Fetzer Vineyards Source: page 22

23 Main findings Sustainability is a main topic of today s global wine business Assessment of sustainability requires an equivalent inclusion of all three dimensions environmental, social and economic A common understanding of sustainability across regional and national boundaries does not exist by now. New Worlds business sector representatives have implemented programs on the national level Added value to brands and products page 23

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