The SW Summary: On Champagne’s harvest crisis, global worker shortages, and the future of viticulture

VSPT Wine Group unveils new sustainability model

Argentinian and Chilean winemaker VSPT Wine Group recently announced its new sustainability model and updated its 2030 targets. Focusing on people, wine and land, the new strategy is made up of two key areas: climate change and sustainable progress. Within the area of climate change, the group is working across five major initiatives: sustainable viticulture, biodiversity conservation, waste management, ecodesign, renewable energy, and water management. To promote sustainable progress, VSPT is engaged in driving conscious consumption, communities, innovation, responsible supply, and brands with a purpose.

The new strategy will be reviewed every two years to update the objectives and progress made.  The group also refreshed its 2030 targets. Some of the updated targets include 100% waste management (industrial and agricultural),100% renewable electricity in wineries and vineyards, and net-zero carbon emissions by 2050. 

Carolina Gotuzzo, Director of Corporate Affairs and Sustainability at VSPT shares how “with the update of its model and targets, the company is confident that we are setting the priorities in place, tackling climate change with a sense of urgency but with our people at the centre. In the current industry situation, we are more challenged than ever, but we need to continue building and moving towards a sustainable industry.”

Read more here.

Champagne lacks concrete measures to improve harvest conditions

In Wine-Searcher Caroline Henry stresses how Champagne needs to do more to protect workers. The region has recently come under scrutiny for its harvest conditions this year, during which five people died while picking and two cases of human trafficking were opened. The resulting economic backlash saw September sales fall by over 20% year-on-year. The CIVC, Comité Champagne, lacks concrete solutions to improve future conditions in the vineyards.

Following a period of radio silence, the CIVC finally issued a press release in mid-October expressing its “commitment to work with government agencies and worker unions to improve working conditions of harvesters and avoid future picker abuse.” The press release highlights the four key areas that need attention: “the housing situation; the pickers’ health and safety; a service provider framework; and recruitment issues.” Whilst a working group has been set up to address these issues, Henry remains skeptical about its ability to drive real change.

In 2022 average grape prices rose by 25%. This lead to increased income for growers and a price war between the houses, who are concerned with maintaining a steady grape supply. Both the UMC, Union des Maisons Champagne, which represents the big Champagne houses, and the SGV, Syndicat Général des Vignerons, which represents growers, are keen to avoid future losses. However, neither is liable for the harvesting conditions.

UMC members buying grapes can’t be held legally responsible, nor can the growers of the SGV, who rely on a murky chain of cheap contractors and subcontractors. This means “houses can deflect blame onto growers, and growers can do the same thing to the contractors used to pick their grapes.” In light of this, Henry asks “what tangible measures imposing real change are likely to adopted in each of the four areas?” Read more here.

Wine industry struggles with worker shortages

Meininger’s reports on the labour shortages in the global wine sector. According to ProWein Business Report 2022, nearly half (45%) of businesses have been affected by shortages. Wineries have struggled the most and seasonal work has been the most affected. This is largely due COVID-19 travel restrictions and unattractive working conditions.

Business responses to the shortages have varied. Almost half expanded their search efforts. A third tried to improve working conditions, but efforts were “hampered by the increased workload.” A quarter raised salaries, but increases were limited by tough economic conditions. Looking ahead, 57% of businesses believe mechanization is part of the solution. Read the full article here.

Cava’s 2023 harvest “serves as a warning about the future of viticulture”

So says Javier Pagés, president of the DO’s regulatory council. Writing for the drinks business, Sarah Neish discusses the DO’s difficult harvest resulting from extreme climatic conditions. A prolonged drought throughout Spain led to a significant drop in yields, but the impact across areas is varied. According to Pagés, “some regions have been more affected by the drought than others, such as the Valls d’Anoia-Foix subzone, which belongs to the Comtats de Barcelona.”

Winemakers are faced with a “steep road ahead” as they begin the production process. However, despite the drop in yield, the “exceptional quality of the grapes in terms of health and ripeness” brings hope for the 2023 vintage. Read more here.