How climate change is transforming the global wine industry - The Drinks Business

Climate change

A year characterized by extreme temperatures and contrasting conditions has paved the way for significant transformations within the wine sector, as Kathleen Willcox explores the ways in which producers are adapting to these changes.

Climate change - Figure 1
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Engage in conversations with a diverse range of 100 wine cultivators, and you'll come across 100 unique strategies to tackle the issue of climate change. Numerous individuals within the wine sector express apprehension regarding the types of grapes they should cultivate and the appropriate geographical regions for cultivation.

According to researchers in the renowned Proceedings of the National Academy of Sciences, the continuous rise in temperatures puts a considerable strain on approximately 85% of the existing regions dedicated to wine production across the globe. In order to combat this issue, experts suggest that winegrowers must adapt to the changing climate by expanding their cultivation areas and diversifying the types of grapes they grow.

Some people concentrate on the significant carbon emissions that are involved in the cultivation and manufacturing of wine. They are working towards decreasing the negative impact by using electric tractors, lighter glass bottles, renewable energy sources, and minimizing the use of chemicals. The aim is to lessen the harm caused both presently and in the years to come.

However, the events of 2023 have consistently reminded us of the impact of climate change on various aspects of our lives. For instance, we witnessed the devastating Canadian wildfires that consumed a staggering 35 million acres by the end of August. Additionally, the United States experienced the deadliest wildfires in over a hundred years, leading residents of Hawaii to resort to dangerous measures such as jumping from cliffs into the ocean. Furthermore, Texas faced a crippling ice storm that left the state paralyzed for more than three days. These occurrences, coupled with the record-breaking global temperatures in July, serve as clear evidence that climate change is posing a significant threat and causing extensive transformations in every sphere of life and business as we currently understand them.

Experts at the National Oceanic Atmospheric Administration (NOAA) caution that the unprecedented climatic conditions experienced this year may lead to a whopping $3 trillion dent in the worldwide economy within the next five years. As we approach the end of this century, it is estimated that the expenses associated with such weather anomalies could soar up to a staggering $84 trillion. Nevertheless, let's remember that these figures are mere predictions and are subject to fluctuations in either direction.

Reflecting on the year 2022, which was relatively less severe compared to the current time we are experiencing, the United States alone witnessed climate-related and meteorological calamities amounting to a staggering $165 billion. These unfortunate events also led to a minimum of 474 fatalities, as reported by the NOAA.

Climate change, it is becoming more evident, impacts the financial, physical, and emotional well-being of people, businesses, and communities. The temporary fix to dealing with this problem is not sufficient. While governments work on reducing the harm caused by climate change and implementing regulations to safeguard the rights of workers in extreme weather conditions, particularly those employed in agriculture, various industries are also confronting present and future difficulties.

For wine producers, this entails thoroughly evaluating their entire operations and implementing modifications wherever they identify weaknesses. Continue reading to gain an understanding of what this entails.

Strengthening Resilience Through Grape And Soil Changes

A major difficulty of severe weather is that in one year, the circumstances might be exceptionally scorching and arid, whereas in the next they could be freezing, bombarded with hail and frost, or excessively drenched. Engaging in future planting can seem like a risky proposition, and winemakers are taking various chances.

In the blog, Vice President of Winemaking Andrew Delos from Far Niente in Oakville shares their plans for the future as they begin the process of replanting the vineyard on their estate. Over the course of six years, they aim to replant a total of 30 acres, with a goal of planting 10 acres every two years.

"We have introduced novel rootstocks that exhibit enhanced resilience to drought and are more tolerant towards frosts. These rootstocks have a considerable level of vigor, ranging from low to moderate," Delos explains. "In addition, we are experimenting with various Cabernet clones, such as the renowned heritage clone by Gil Nickel, as well as selections from FPS and ENTAV."

The vineyard staff is also changing the alignment of the rows to improve the grapes' ripening process.

Despite facing difficult circumstances, proponents argue that wholesale farming transformations can greatly influence crop yields and their overall quality.

“Greg Pennyroyal, the supervisor of the vineyard at Wilson Creek Winery and Vineyards in Temecula, states that in the previous year, the Valley experienced over 40 days with temperatures surpassing 105 degrees. In general, grape growers faced a 25%-30% reduction in their harvests. However, our vineyard did not encounter any crop loss despite these conditions."

Pennyroyal ascribes the regenerating, eco-conscious farming methods he initiated 11 years back.

"By practicing regenerative agriculture and refraining from using chemicals, while also promoting a variety of plant and animal life in and around the vineyard, one can enhance the ability to withstand and adapt to various climate conditions," he suggests. "This approach serves as the most effective means of safeguarding against unexpected climate events."

The Crimson Wine Group, an organization that encompasses various brands from seven wineries located on estates in California, Oregon, and Washington and possesses a total of 602 acres of farmland, is modifying its crop selection and cultivation locations.

Nicolas Quillé, the main person in charge of winemaking and operations at Crimson, discusses how they made the bold decision to plant Cabernet Sauvignon in Carneros, despite facing doubts from others. Additionally, they also planted Zinfandel in cooler parts of the Russian River Valley. They are also experimenting with other varieties such as Bobal and Susumaniello, which personally intrigue Quillé in the Napa region. In terms of environmental sustainability, they have been actively working on water conservation and preservation measures, including the construction of a reservoir. Although the exact financial impact is confidential, these efforts have significantly improved their cash flow due to the scale of the improvements made.

Quillé explains that the effect on the financial outcome should be "negligible as they are accounted for and spread out over a period of 25 to 30 years, and they will ensure the continuity of business."

Jason Moulton, the individual responsible for winemaking and viticulture at Whitehall Lane Winery located in St. Helena, is implementing alterations in the types of grapes grown and transitioning towards a farming method known as no-till regenerative farming for their extensive 145-acre estate vineyards.

According to Moulton, our discovery suggests that transitioning to agricultural practices centered around enduring cover crops such as Oakville bluegrass enables us to effortlessly inhibit the proliferation of unwanted plants while also sequestering carbon. Consequently, this affords us the opportunity to minimize both manual labor and the frequency of tractor usage, resulting in a substantial reduction in diesel consumption as well.

Moulton has additionally reestablished numerous hectares of Sauvignon Blanc that he affirms were continuously devastated by Pierce's Disease. They introduced cultivations of Camminare Noir and Paseante Noir.

"We have only conducted limited bottling operations until now, and our initial harvest took place in 2019," he explains. "However, the taste is excellent. These grapes have immense potential, particularly in areas like Texas and South Carolina where Pierce's Disease prevails. Fortunately, not only are these grapes resistant to the disease, minimizing the need for intervention, but they also produce exceptional wine."

Ensuring Safety: Instituting Protective Policies

Since 2011, a total of four-hundred-thirty-six individuals have lost their lives due to extreme heat conditions while working, as reported by the Bureau of Labor Statistics. Additionally, heat-related illnesses have resulted in the loss of workdays for over 2,700 people. Surprisingly, there is currently no national legislation in place to establish heat safety regulations within work environments.

This ultimately puts the responsibility on states and companies to compensate. Within California, there exist official rules that necessitate businesses to supply employees with both water and shaded areas. Numerous wineries take it upon themselves to exceed these requirements.

Steve Lohr, the head honcho at J. Lohr Vineyards & Wines situated in Paso Robles, disclosed that they were the pioneers behind the development of shade trailers in the 90s, and these remarkable creations continue to be utilized even today. J. Lohr Vineyards & Wines, renowned for producing a staggering 1.6 million wine cases each year, takes pride in their enduring and effective shade trailers.

They also began rearranging employee schedules in advance of anticipated heat waves.

"If we are aware of an approaching heat wave, we begin our work much earlier in the morning, and once the temperature reaches 95 degrees, we conclude our tasks and send our workers home," he explains. Additionally, this strategy improves the quality of the wine during the harvest season. "To prevent the grapes from being affected by the heat, we have them transported to the winery early in the morning. Once the temperature hits 105 degrees, the quality of the harvested grapes declines."

According to Martina Litta, the manager responsible for foreign trade at INAVI, the nationally recognized institute for viticulture in Uruguay, all of the 200+ wineries in the country take measures to ensure the well-being of their employees. These measures include providing workers with sunscreen, a comfortable summer uniform, and a protective hat with full UV coverage. Additionally, the wineries have revised their working hours to prioritize the safety and health of their employees. In the northern region, the workday commences at 5 am, while in the southern region, it is split into two shifts: 6 am to 11 am and 4 pm to 11 pm.

Winemakers are now starting to put their money into chilled trucks and watering tools, which leads to a considerable rise in expenses (setting up can reach as high as $10,000 per hectare). However, it also results in higher efficiency and better quality. Ultimately, she concludes that this is simply the price one must pay to conduct their business.

Dependence On Technology And Automation Surge

Unavoidably maybe, taking into account the restrictions of the human physique in intense warmth, and the growing difficulties of locating practical workers, an increasing number of vineyards are embracing automation to control expenses amidst climate variation.

According to the vice president of winemaking and vineyards at The Donum Estate, Dan Fishman, they currently have a total of 129 acres in Carneros, 16 acres in the Russian River Valley, 20 acres in Sonoma Coast, and 43 acres in Anderson Valley. While they plan to continue manually pruning and harvesting their vineyards for the foreseeable future, they have recently invested in two electric tractors that are equipped with autonomous remote driving capabilities. This advanced technology has the potential to eliminate the need for a human driver in tasks such as mowing, cultivating, hedging, and more, in the future.

Approximately 90% to 95% of wine grapes in California and Washington are already harvested using machines, leaving only the most exceptional and difficult vineyards to rely on manual picking.

"Moulton asserts that automation is the way forward, encompassing tasks such as leafing, detaching suckers, and harvesting."

In addition to replacing vineyards, Far Niente has made investments in advanced technology that assesses the well-being of the grapes, foliage, and soil.

"Through examining the moisture and essential substance measurements in that manner, we can enhance our watering strategy with greater efficiency," Delos explains. "Currently, we utilize only 25% of the water we utilized before."

The team has also put money into electric tractors and utilizes a machine harvesting unit for a fraction of the vineyard, specifically 10%.

Delos explains that when we reseed, we make sure there is enough distance between the rows so that machines can efficiently harvest the crops. He emphasizes that the number of available workers is decreasing, and fortunately, the mechanical harvesters have become more advanced.

Other vineyards are also increasing their investments in environmentally friendly technology.

According to Paul Sloan, the co-owner and winemaker of Small Vines in Sebastopol, they have acquired two additional fans to prevent frost and one new irrigation system this year. The price of fans can vary from $10,000 to $50,000, while irrigation systems usually cost thousands of dollars per acre.

Over the past five to seven years, there has been a noticeable increase in the duration of colder temperatures in our vineyards, extending later into the season," Sloan points out. "Previously, we were able to cultivate our vineyards until 2019 without implementing any frost protection measures, but now it has become a regular necessity. As an example, one of our frost alarms was triggered on July 5th this year, indicating that the temperature dropped below 36 degrees."

Although companies are reluctant to discuss specific figures regarding the financial setbacks caused by climate-related grape withering, they universally labeled them as "significant." In addition to these substantial losses, there have been substantial expenses related to making adjustments to vineyards, hiring staff, improving infrastructure, and dealing with the negative effects of droughts and smoke contamination caused by wildfires. Taking into account all these factors, it is evident that the wine industry is likely to face challenging times in the coming years.

However, it is evident that even though implementing extensive and widespread transformations may cause discomfort, it will ultimately secure a sustainable future, regardless of potential natural disasters such as wildfires, hailstorms, flooding, or freezing temperatures.

"When I contemplate the plight of other vineyards burdened with excessive financial debt, I ponder how they will manage to muster the required funds to sustain their production."

According to Quillé, we perceive our capability to allocate funds and safeguard our resources as a point of advantage in the market.

If wineries are unable or unwilling to implement significant modifications, it is possible that they will not be able to withstand the intensifying competition and difficult economic and environmental conditions.

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