Challenges of the Wine Industry
It is no news that the wine industry has faced numerous challenges over the past decades, particularly in the last five years (post-COVID).
Discussing the subject with various people in the wine industry and reading more posts and articles over the last six to eight months inspired me to create this image/collage (header) and share my views on these challenges on my blog as well.
Many environmental, demographic, and economic factors influence these challenges, and they vary from one country to the next. Because going case by case would be too long, I will provide further details on these challenges for the wine industry as a whole, meaning generally speaking.
Among all of them, there are 5 main recurring challenges at the core of this global situation that have worsened over the past five years.
These five key challenges impacting the wine industry include environmental challenges, economic shifts, demographic and preference changes, price fluctuations, and declining production. Climate change poses a significant threat to grape cultivation, while economic factors, such as declining sales and shifting consumer preferences, disrupt the market. Therefore, prices are unavoidably impacted while production declines for various reasons.
Let's delve into these challenges to gain a deeper understanding of why and how they affect the entire wine industry, and ultimately, what it means for the future.
The 5 main challenges are related to:
- Climate change
- Decreasing sales
- Declining consumption (due to changes in demographics and preferences)
- Prices (shifting/fluctuations)
- Production decline
1. Climate Change
The primary challenge facing the wine industry is climate change. Rising temperatures and shifting weather patterns, including longer and colder winters extending into spring and drier or wetter summers and falls, threaten traditional wine-growing regions.
After dormancy during winter, the vine's growing season typically spans from spring to fall. During this time, the grapevines undergo several key stages: budding, flowering, veraison (fruit development), ripening, and eventually, harvest.
Spring (Late Winter/Early Spring - March/April): Budding
Vines begin to come out of dormancy as temperatures rise, and bud break occurs, marking the beginning of the vine's annual growth cycle. Vines start to wake up and release new shoots from their buds. If the low winter temperatures persist for too long, they can affect and delay budding by increasing frost damage.
Spring/Summer (Mid Spring-Early Summer - May/June): Flowering
In the Northern Hemisphere, flowering typically occurs around May. Flower clusters appear, and pollination takes place, resulting in the formation of small green grapes later in June. If flowering happens too early due to warmer temperatures, it can increase the risk of frost damage.
Freezing temperatures damage the plant's tissues, especially the young, tender green shoots and buds. This damage can lead to a reduction in yield, loss of buds and shoots, and even damage to the trunk and cordons. This has been a recurring issue in France over the past 5 to 15 years.
In Bordeaux, for example, recent years have seen significant recurrent vine damage due to frost. The most recent severe frost was in April 2017, causing widespread damage and a 40% drop in the harvest. Estimates suggest that up to 70% of vineyards experienced some damage, with some suffering losses of 80% or more. The frost resulted in a 40% decrease in the 2017 harvest, with estimated financial losses of € 1.6 billion.
Different techniques are allowed to warm up the vineyards to prevent frost damage when lower temperatures are expected to dip below the freezing level during the night and early morning.
In recent years, winegrowers have employed a variety of techniques to combat frost damage, including traditional methods such as candles and heaters, as well as more advanced techniques like wind machines, helicopters, and even sprinklers. While some methods are more sustainable, others are more energy-intensive or expensive.
Burning candles is one of the most used techniques. It creates a slight increase in temperature and disrupts the settling of cold air, preventing frost formation. Yet, it only works until a certain level of cold is reached, and it increases the temperature in the air by only 1 or 2 degrees. Therefore, it might not be very efficient if the frost worsens or lingers. Moreover, it can prove rather expensive if the frost lasts.
Electric or fossil-fueled heaters can raise the temperature of the air around the vines; however, they are more expensive and less sustainable than candles and may require someone to supervise them constantly.
Other techniques used mainly by the wealthiest Chateaux and Domaines include wind machines that stir up the air, mixing warmer air from above with the cooler air near the ground, preventing frost. Some also use helicopters that use their blades to stir up the air, similar to wind machines, but they are expensive to operate and require significant capital investment.
Some may use sprinklers, which consist of applying water to the vines to create a layer of ice, which in turn protects the buds by releasing latent heat as the water freezes. Yet, it might prove quite costly in the end, considering the large quantity of water required and the associated costs.
Anti-frost covers also exist; these covers, placed on trellising wire, create a barrier between the vines and freezing air. However, they are not widely used; for instance, in France, they are prohibited. A small number of growers and winemakers, such as Loïc Pasquet, have been advocating for the legalization of the use of these anti-frost covers for several years, which could provide a more sustainable and cost-effective alternative.
However, regardless of the techniques used, they always imply unplanned extra labor costs, as additional personnel are often required to apply these techniques, weakening the growers' and producers' financials that could have been used for other needs, such as repairs to vineyards and cellars, new projects, or expansions.
Summer (Late Spring and Summer - Late June, July, August to early September): Veraison and ripening
Grapes begin to grow and develop, undergoing a process called veraison, during which they change color and start to accumulate sugar.
Over the last decade, more frequent rainfall and humid conditions, as well as violent storms, have increased the risk of mildew and other vine diseases, along with flash flooding and soil erosion.
Hail and violent storms can inflict significant damage on vineyards, leading to reduced yields, compromised grape quality, and potentially long-term vine health issues. The severity of the damage can vary depending on the timing and intensity of the storm, as well as the stage of vine development.
Hail can knock grapes off the vines, bruise or rupture grape skins, or even shatter the fruit, leading to immediate crop loss and reduced yields. It can also strip leaves from the vines, reduce photosynthetic capacity, and disrupt the vine's ability to produce energy for growth, thus delaying fruit maturation. Damage to leaves, shoots, and fruiting buds can impact the vine's ability to produce future crops. In extreme cases, hailstorms can damage vines so severely that they may not recover, resulting in the loss of the vine.
On the other hand, violent storms can damage shoots and trunks, potentially leading to infection by bacteria such as Agrobacterium, which can cause crown gall disease, especially in younger vines. Damage to grape skins can lead to rot, reducing grape quality and, consequently, impacting wine quality and eventual ageing potential.
Sudden heavy rainstorms and intense hailstorms have become more frequent, even affecting areas where they were previously rare, sometimes destroying a high percentage of the crop.
Therefore, on top of fearing the frost bites of late March and April, growers and producers now face more recurrent and more frequent hail storms occurring usually in May and June, followed by heavy rainfall during the summer months. And unfortunately, there is nothing they can do to prevent these natural disasters.
Managing hail and storm damage can be very costly, as it often requires growers and producers to prune damaged vines and address disease outbreaks. Proper irrigation and fertilization can help damaged vines recover and regain their health. Implementing pest control measures can help prevent further damage from pests.
Some vineyards may choose to invest in protective measures, such as nets, to reduce hail damage. However, these can be costly, require extra labor, and, like the nets used for frost protection, may not always be permitted in certain regions. Others might insure their vineyards against hail damage, which can help mitigate financial losses. Whatever methods are employed, they represent yet another unexpected expense.
Disrupting weather patterns, such as sudden hail and storms, is a problem; however, the ever-increasing temperatures (and eventually, air pollution and deforestation) of the past two decades have also led to major droughts and water scarcity in some regions, which in turn impact grape yields and quality.
The ideal growing season for wine grapes is characterized by a balance of warmth, sunlight, and rainfall, which ensures healthy vine growth and the production of high-quality grapes for winemaking. Conditions that are too cold and humid can cause irreversible damage, but so can excessive sunlight, heat, and high temperatures.
Heat stress in vineyards can cause significant damage, impacting vine health, fruit quality, and yield. High temperatures can disrupt photosynthesis, slow sugar accumulation, and lead to sunburn and shriveling of berries. Extreme heat can also reduce berry acidity, affecting flavor profiles, and even cause berry death.
High temperatures, especially after veraison (when grapes start to soften), can disrupt photosynthesis and slow the accumulation of sugars in ripening grapes. Berries directly exposed to sunlight can reach temperatures significantly higher than the surrounding air, leading to sunburn and shriveling. This can cause visible damage, reduce yield, and affect quality. High temperatures can increase respiration rates in grape berries, which in turn lowers levels of malic acid, a key organic acid that influences flavor. Extreme heat, particularly during heat waves, can lead to complete berry death.
Heat stress can also lead to leaf loss and damage to the clusters, ultimately impacting vine health and future growth. Excessive heat can worsen soil moisture deficits and water shortages, potentially leading to drought stress if sufficient irrigation is not maintained.
Autumn (Late Summer/Early Fall): ripening and harvest
Grapes ripen, and winemakers decide on the optimal time for harvest, which generally occurs in the fall.
Various grape varieties have distinct ripening requirements, which means some can be harvested earlier or later in the season. In Bordeaux, for example, for the reds, Merlot ripens faster than Cabernet Franc and Cabernet Sauvignon, so harvest time differs depending on the grape variety, the level of ripeness, and the weather. The same applies to whites as Semillon ripens earlier than Sauvignon Blanc.
During the ripening and harvest seasons in vineyards, problems can arise from weather, pests, diseases, and uneven ripening, which can impact grape quality and yield. These issues can lead to reduced flavor, potential spoilage, and challenges in managing the harvest itself.
The disruptive weather patterns of recent years have led to heavy or excessive rainfall during the ripening and harvest seasons in some regions, which can cause berries to swell, diluting flavors and potentially cracking their skins, making them vulnerable to spoilage. Well-drained soil is crucial for healthy grapevines.
On the other hand, heat stress due to extreme heat and heat waves can also occur, damaging leaves and berries, reducing sugar production, and attracting pests.
The unpredictable weather, temperature fluctuations, droughts, and rainfall that some regions have experienced in the past decade have disrupted the ripening process, making it difficult to predict optimal harvest times.
Facing these challenges, vineyards are more susceptible to fungal diseases such as powdery mildew and downy mildew, which can damage grapes and lead to reduced yield and quality. Grapevine pests can inflict significant harm and diminish the quality of the grapes. As previously mentioned, water-stressed vines can be more vulnerable to pests and diseases.
Also, some grape varieties exhibit varying levels of genetic predisposition to uneven ripening. Therefore, if they are not planted or grown in adapted soils with the ideal climate and environment, they may face challenges that prevent some grapes from ripening evenly, complicating the timing and delaying the harvest. A few days may not seem significant, but if grapes, and consequently parcels, are ripening unevenly, the harvest could be delayed by a week or two, depending on the weather and, of course, the ripening pace.
Differences in sun exposure, temperature, and airflow within the vineyard, resulting from geographic location and environment, as well as the proximity of a mass of water, forests, or buildings, can also lead to microclimate (lack of sun, uneven air flow, mist, difference in temperatures, etc...) and thus uneven ripening.
Fortunately, winemakers can influence the ripeness of grapes by adjusting harvest timing, which impacts the final style and taste of the wine, based on their preferences, the appellation requirements, and the quality of the vintage.
Understandably, the best vintages are typically the least problematic, characterized by an ideal growing season for wine grapes. This season features a balance of warmth (throughout the budding and flowering), sunlight (during the ripening and harvest), and rainfall (in spring, along with occasional summer showers and/or a few weeks before harvest), all of which ensure healthy vine growth and the development of high-quality grapes for winemaking.
After harvest, the vines enter dormancy for the winter, while the winemaker dedicates attention to vinification and crafting the wine.
Changing, adjusting, and adapting
Based on the challenges faced by growers and winemakers in the vineyards (cited above), climate change is affecting vineyard growth and conditions, grape yield, composition, and wine quality. As a result, the practices in the vineyards, the types of grape varieties used, and the geography of wine production are also evolving.
Vineyards are adapting to the effects of climate change by adjusting practices in several key areas. This includes switching to more drought-resistant grape varieties and rootstocks, modifying canopy management, and adjusting harvest times. They are also exploring new irrigation methods, considering traditional techniques, and even expanding to new regions that are becoming suitable for viticulture.
In Bordeaux, for example (being a native of Bordeaux, it is the region I know best), growers and winemakers, led by notable figures like Loic Pasquet of Liber Patter and Jean-Baptiste Duquesne of Chateau Cazabone, have fought the appellation authorities for years to incorporate additional grape varieties into the authorized selection: transitioning to drought-resistant varieties and rootstocks, including some from warmer regions and some that were previously existing but prohibited by the appellation rules.
In 2019, producers of Bordeaux AOC and Bordeaux Supérieur sought approval for certain varieties aimed at alleviating the impacts of climate change while preserving the essence of Bordeaux wines. Some of the traits of the listed grapes included high natural acidity, robust structure, strong aromas, and effective resistance to certain vine diseases, such as mildew and grey rot.
The French national appellation authority, INAO, approved six new grape varieties to help Bordeaux wine producers adapt to climate change. The approved varieties include four red grapes—Touriga Nacional, Marselan, Castets, and Arinarnoa—and two white grapes, Alvarinho and Liliorila. Petit Manseng was also suggested but was excluded from the final list.
According to Bordeaux’s wine council, the CIVB, the planting of these varieties commenced in 2021, with a strict rule that these varieties can collectively make up only 5% of a producer’s vineyard area and 10% of the final wine blend, to preserve the taste and style of Bordeaux. As most Bordeaux top appellations have not accepted these new grape varieties as part of their blends, the wines made from them can only be sold where authorized as Bordeaux AOC and Bordeaux Supérieur AOC, or as a Vin de France AOC.
Other regions and appellations in France, which are also experiencing the consequences of climate change, are gradually exploring the possibilities and may eventually incorporate grape varieties previously prohibited in their wines. Some regions previously suited for other types of agriculture are now also emerging as new wine regions and appellations.
***** work in progress *******
Cheers! Santé!
Dom
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