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CALIFORNIA greeningWinemakers are increasingly keen on telling

consumers about sustainability. But does this

result in more bottles being sold,

asks Anne Krebiehl MW

Napa Green programmes because it’s theright thing to do for our environment andour community.”Nonetheless, now that so much progress

has been made in the realms of farmingand winemaking, it is only logical that theprogrammes, with their in-builtmechanisms of continuous improvementand re-assessment, will move on toscrutinise the sales, distribution andmarketing processes, too. Bothprogrammes boast impressive figures:CSWA stated in its 2015 SustainabilityReport that since 2002 “2,091 vineyard andwinery organisations, representing 69% ofCalifornia’s wine-grape acreage and 79%of cases produced, have participated inthe self-assessment”. In 2015 alone, itsays: “483 vineyards and 91 wineriesachieved certification. They make 63.6%of California wine.” Likewise, Napa Valley Vintners advised

that the goal it implemented in 2015 tohave every eligible member (those thatown either a winery or vineyard, or both)signed up to the Napa Green programmeby 2020 is already at the halfway mark.At CSWA, executive director Allison

Jordan says that profitability “has been an

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> Sustainability has become a hottopic over the past decade.

> While the benefits are clear, the nextquestion is whether sustainabilitycredentials translate into sales.

> Winemakers such as Jon Ruel, CEOof Trefethen Family Vineyards inNapa, say having their wines beknown as ‘sustainable’ “sometimeshelps sales and it never hurts”.

> Now so much progress has beenmade in the realms of farming andwinemaking, it is only logical thatthe programmes will move on toscrutinise the sales, distribution andmarketing processes, too.

> Research commissioned by CSWA showed 72% of respondentsobserved “increased consumerdemand for sustainably produced wines”.

green trends: cal i fornia

>

OVER THE past decade, sustainabilityprogrammes have evolved from basicsystems that improved awareness intosophisticated management tools. Theyscrutinise every aspect of winegrowingand production for efficiency in terms ofeconomic, environmental and communalimpact. Optimised processes, newsynergies and substantial savings clearlyshow that sustainability measures appliedsystematically, rigorously and continuallyhave a real impact on the bottom line. While the benefits are clear, the next

question surely is whether sustainabilitycredentials translate into sales, and if theydo, whether this is more relevant for thepremium sector. To find out, we spoke tothe California Sustainable WinegrowingAlliance (CSWA), Napa Green, some ofthe vintners, and to stakeholders in theUK market.When we asked vintners if sustainable

certification has any impact onprofitability beyond the well-documentedsavings engendered by better practice, ifthe green image indeed helps with sales,

and whether trade or consumers areaware of this we got fairly realisticassessments: “The short answer is thatbeing sustainable sometimes helps sales,and it never hurts,” says Jon Ruel, CEO ofTrefethen Family Vineyards in Napa.Stephanie Honig, sales director at HonigVineyard & Winery in Rutherford, admitsthat any possible effect is difficult toquantify: “It’s always been either apositive effect or a neutral effect,depending on the buyer and where thewine is being presented. It’s impossiblefor me to give a dollar amount to beinggreen, but I have observed that morepeople in the trade are asking questions

and creating sections on their wine lists oron shelves for sustainable, organic orgreen wines.”In effect, profitability is only affected if

people further down the distribution lineand the final consumer have awareness.

CONVEY A MESSAGEBruce Cakebread, president and CEO ofCakebread Cellars in Napa, has seen aclear development: “Seven to 10 years agogreen practices didn’t really register withconsumers,” he says. “Their questionswere ‘what is the price?’ and ‘does it tastegood?’. Sustainability was moreimportant to the trade buyer and somebuyers even used it as a starting point fortheir selection process. Today, we find theend consumer has a greater degree ofinterest in knowing that the wine theybuy is both grown and produced in asustainable manner. For our 2016 vintage,we have added the Napa Green logo toour back label to help convey thatmessage.” However, Cakebread cannotquantify this in terms of sales.

Producers also register varyingdegrees of awareness in differentmarkets: “It definitely dependson the market,” says Trefethen’sRuel. “In Japan, one of our topexport markets, the trade, as wellas consumers, is very keen onsustainability. Even the specificNapa Green certification hassome traction there. Myimpression is that the UKmarket, generally, also cares.” Honig says: “Scandinavian

countries, Canada and the US areleaders in this,” adding, “Millennials arethe driving force for evaluating acompany’s social responsibility as theyshop. So we expect the benefits of thegreen image to grow around the world inthe years ahead.” All the producersemphasise that sustainability measureswere not implemented for these reasons.Patsy McGaughy, communicationsdirector for Napa Valley Vintners, says:“Research indicates both wine consumersand trade buyers consider sustainabilitywhen making purchasing decisions, andthat trend seems to be growing.Regardless, the Napa Valley Vintnerswould still be a strong supporter of the

‘In Japan, one of our top exportmarkets, the trade, as well asconsumers, is very keen on

sustainability. Even the specificNapa Green certification has

some traction there’

Feature findings

produced wines”. However, the samenumber also identified a “lack ofunderstanding and familiarity byconsumers” as the “chief obstacle toselling more sustainably produced wine”. The task ahead is education and

communication: 80% of respondentsbelieve that “clear and highly visiblelabelling” is key to that process.When it comes to a sales advantage for

sustainable wines in the UK, SarahKnowles MW, US wine buyer for TheWine Society, is cautious. “At themoment, I’d have to say there is no direct

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ongoing topic of conversation for the pastseveral years and a key driver for therecent update to our certificationprogramme. The use of a certificationlogo on the wine label allows growersand vintners to credibly communicate

their environmentally and sociallyresponsible practices in the marketplace.”However, the CSWA certification

programme itself now also takesprofitability into account. Jordan explains:

“A new ‘economic assessment tool’ helpsgrowers and vintners evaluate thepotential benefits and investmentsassociated with the first year ofcertification. The tool was developed bysustainability software experts at

Thinkstep, and is modelled ontheir well-established BusinessValue of Sustainability System,with input from current certifiedparticipants. The tool estimates adollar value for benefits such asimproving sales relationshipswith customers or accessing newmarkets.” Jordan also notes: “Anumber of wineries offer pricepremiums for certifiedsustainable grapes. Thesewineries clearly find such valuein sustainability that they arewilling to pay their growers

more.” Research commissioned by CSWAand conducted in the US trade inDecember 2016 showed that 72% ofrespondents observed “increasedconsumer demand for sustainably

‘A number of wineries offerprice premiums for certifiedsustainable grapes. Thesewineries clearly find such value in sustainability that they are willing to pay their

growers more’

Taken as red: vine in Napa

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green trends: cal i fornia

of sustainable registration around theworld haven’t quite linked up with acommon set of rules, and many non-registered small producers are sustainablebut may never fill in the paperwork.” CSWA’s Jordan is all too aware of this.

“Most consumers seem to grasp theconcept that a logo on the wine bottlerepresents hard work and commitment,including a financial commitment, fromgrowers and vintners. The hard part thatlies ahead is elaborating on what that logo represents.” db

sales impact; however, this is untested,”she says. “As a buyer, given that I valuesustainability, I may tend towards morewines from registered wineries, which, bydefault, would mean that my membersmay end up unknowingly buying more

wines that are sustainable.” Jack Green,head of off-trade sales at Roberson Winein London, a California specialist, thinks:“It’s too early to tell. Early research wehave conducted suggests that most

consumers would buy a bottle of winebased on environmental credentials(organic/fairtrade/sustainable). Theproblem is there are few wines thatactively promote the fact they aresustainable. Most consumers don’t really

know what sustainability is. Asconsumers become more awareof what sustainability is, the more it will matter.” James Doidge, managing

director of California specialistThe Wine Treasury in London,has not seen evidence that asustainability certification eitherhas an effect on sales or that thismatters to his consumers. In hisview, certification is morevaluable at the entry-level:“Hardly any of our top-pricedUS wines place an emphasis on

this: they don’t need to.” But Knowlesalso points to another key hurdle: “It isalso hard to flag sustainable wines. Wemark out organic wines online but not yetsustainability, as so far the various forms

‘Most consumers don’t reallyknow what sustainability is. As consumers become more

aware of what sustainability is,the more it will matter’

Windmill in NapaBruce Cakebread, of Cakebread CellarsAllison Jordan, CSWA