Eco-Friendly Wine: A Vital Category For Current & Future Sales

Source: Bonterra

A few years ago two Harvard Business School professors penned organic wine’s post-mortem: “the history of organic wine . . . provides a case study of failed category creation,” they said in 2017. When the Harvard Business Review published an online summary of the paper in April 2018, the title expressed a bit more optimism: “How Organic Wine Finally Caught On”. Still, the overall tone remained sour: “If you cannot remember the last time you had a glass of organic wine, you are hardly alone. Overall, less than 5% of the world’s vineyards are organic. In the United States, the world’s largest consumer of wine, only 1% of wine sold by volume was organic.” The esteemed business experts pointed to one ray of light: “we also found that the recent success of a related category — biodynamic wines — shows a possible way forward.”

Oh, how times have changed, especially from the sommelier’s perspective. Eco-friendly wine is a large market, with tremendous on-trade growth potential. Limited production natural wines are now highly-allocated treasures whose price can soar almost exponentially in the “gray market” due to consumer demand. Among Wine Intelligence’s five predictions for 2022 is: “luxury wine will need to burnish sustainability credentials,” while prediction number one is about lighter glass bottles for carbon footprint reduction. IWSR’s report on 2022 trends finds that both producers and consumers increasingly expect to find a clear commitment to sustainable practices when making purchasing decisions. “Consumer research shows that 48% of US alcohol drinkers say their purchase decisions are positively influenced by a company’s sustainability or environmental initiatives; rising to 72% among Brazilian alcohol drinkers, and 70% of urban affluent Chinese alcohol drinkers.”

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