Ron Morrison
The popularity of organic food and beverage products has skyrocketed in recent years. Consumer appetites for organic foods have become insatiable, catapulting them into one of the fastest growing agriculture sectors. Similarly, the organic trend has extended to the wine market with more winery businesses thinking about organic wines. At the same time, sustainability has transformed the business world and increasingly been adopted in the wine industry globally. The relationships and differences between the two green approaches are outlined in the following.
Organic wines refer to the cultivation of the wine grape and vineyard practices without inputs of synthetic chemicals or genetically modified organisms or products, found in many pesticides and fertilizers. They also refer to wines processed with considerably fewer or no added sulphites or preservatives, other than naturally occurring ones. Although there is much debate over sulphites in wine, they are a common food preservative - a chemical substance derivative from SO2, which has been used for centuries since Roman times in winemaking, protecting wine from oxidation and bacteria.
Organic wines are generally focused a little less on other factors such as the conservation of water and energy resources - key cost determinants in producing wine. Water supply is a significant variable in wine production and one that is limited by nature and regulated by provincial and local governments. In light of climate change and drought conditions that are on the rise, water will become even more critical in producing wine. It is also one that is likely to become increasingly costly in light of changing legislation, such as the new Water Sustainability Act in British Columbia.
The concept of sustainability is broader from a business perspective. It applies to how the grapes are grown in the vineyards, production and cellar practices in the winery, waste management and recycling, supply and transportation, sales and marketing of the brand, and finally, how the product overall relates to sustainability of the business and perceptions of consumers. It refers to a range of practices, not only from environmental perspectives, such as chemical additives, but also addresses financial interests and social values.
Sustainability has evolved as a business approach to wine production that is innovative, cost effective, engaging and preferred by consumers, while aimed at conserving resources. Winery enterprises are beginning to view sustainability as an opportunity to drive operational efficiencies and reduce costs, improve quality and build capacity for long-term strategic growth.
Benefits and Drivers of Going Green
While some local enterprises are still learning the benefits of how their operations can benefit from sustainability, a tipping point is emerging and being driven by investors, governments and customers who have come to see the greater value possible through an economic, social and environmental lens. Numerous market studies have confirmed a growing trend in strong consumer preferences toward sustainability. In some locations such as northern California, retailers have seen double digit sales growth among sustainable wines.
A new era in business thinking, producers and consumers are all driving both organic production and the sustainability model in the wine business. Meanwhile, there are misconceptions and gaps in the level of understanding between the two approaches. One common myth is that organic production implies sustainability. In fact, the production of wine as an organic product can be extended to encompass the broader social, economic and environmental values of sustainability. An organic wine can very well be a first step in building a robust sustainability program for a winery enterprise.
The rise in organic food and beverage branding and marketing is actually helping distinguish and bring sustainability into focus for wine producers. The evolution of wine making has come almost full circle from early traditional methods applying more natural processes and ingredients, to large-scale and mass production with the application of pesticides, fertilizers and sulphites, and now with organic and sustainability processes, returning to greener approaches without the assistance of chemicals and thinking more about the conservation of resources in production processes.
Requirements and Standards for Organic and Sustainable Wine
Requirements and standards for organic wines in Canada fall under the general principles and management standards set out under the Organic Products Regulation adopted by the Canadian Food Inspection Agency. They refer to agriculture products that are grown and processed under various practices, relating mainly to crop production systems and permitted substances. The regulations apply to agriculture producers who want to make an organic claim or use the Canada Organic label to market their products, and are implemented through a program of voluntary market certification. Similar legislation and guidelines exist at the provincial level, with BC, Manitoba and Quebec also requiring the federal regulation.
Although there are several wine sustainability certifications that are popular outside of Canada, certification is just beginning to gain traction in Canada, based on the BC Wine Grape Council Sustainable Winegrowing Program, and the Wine Council of Ontario Sustainable Winemaking Ontario: An Environmental Charter for the Wine Industry and its Sustainability Certification Program. While these programs provide tools and direction for establishing sustainability into winery businesses, external expertise can facilitate and expedite the process.
Sustainability Integration and Goals
How can sustainability be integrated into winery operations and what are the kinds of goals that can be pursued? The starting point for building sustainability into operations and planning for the future is to undertake a baseline assessment to provide quantifiable metrics that relate to environmental, economic and social attributes of your business. From this baseline, it is then possible to begin planning for sustainability into the future, with goals and initiatives related to those goals. For example:
- Extend organic production practices through a 60% reduction in the use of fertilizers, pesticides and sulphites by 2018.
- Reduction of water consumption and corresponding costs by 40% over the next five years, and greenhouse gas emissions by 30% over the next three years.
- Report on sustainability framework, practices and performance by 2017, following widely accepted sustainability reporting standards, e.g. GRI and CDP.
Measuring performance in terms of operations inputs and outputs, and planning and reporting are the prerequisites to advancing sustainability. Regardless of the motivating factors and ways in which greening a wine business is approached, there are significant benefits to be realized through commitment to more sustainable practices in winemaking. With increasing interest and awareness among producers, they can begin to uncork the multiple benefits of sustainability.
Ronald Morrison, MES, MCIP, RPP is President of Sustainability North Inc., a consultancy and advisory practice specializing in corporate sustainability, regulatory affairs and environmental planning. www.sustainabilitynorth.ca
