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WINE FARMING FORA SUSTAINABLE
FUTURE
APR I L 2020 ISSUE 1
90% of Europe’sorganic vineyards arefound in France,Spain and Italy
Organic wineconsumption is
forecasted to reach976 million bottles
globally in 2023
V I N E Y A R D & T E R R O I R F U N DA W S F S I C A V P L C . C O M P A N Y
In a time when we are concerned about global
warming and climate change, and with the
ongoing Covid-19 pandemic on everyone’s mind,
we are all making an effort to be more respectful
to nature: we want to become 'Greener'. The
word that summarises these sentiments is
sustainability, and sustainable practices represent
our best hope for success in the era of climatic
challenges in which we are living.
Increased sustainability starts with an increasing
global interest in, and a better understanding of,
farming practices. The wine world is no exception,
promoting changes in line with the values of
consumers, who favour the highest environmental
standards for viticulture.
Sustainable wine growingpractices protect our soil, air
and water. Adoptingenvironmentally, sociallyresponsible practices and
making them an integral part ofwinemaking will ensure the
health of our land, ourcommunities and our industry
for generations to come
GREENER
W W W . W S F S I C A V . C O M WINE FARMING FOR A SUSTAINABLE FUTURE
2
BUT WHAT DOESSUSTAINABILITY MEAN IN THEWORLD OF WINES? WHATMAKES THE DIFFERENCEBETWEEN A TRADITIONALAND A SUSTAINABLEPRODUCTION SYSTEM?
In order to produce organically grown grapes,
the vineyard manager implements a set of
practices in accordance with either organic or
biodynamic methods.
Organic winemakers aim to produce high
quality grapes, and wines, while minimising
the use of inputs in the vineyard and in the
winery.
Organic production falls into two categories:
wine that is itself organic, and wine made
with organically grown grapes. These
categories take advantage of the local
biodiversity and maintain a natural balance
between resource and productivity.
According to law, chemical fertilisers and
pesticides are forbidden to organic famers.
However, the organic production method still
relies on additives such as copper and sulphur,
both of which have a negative impact on the
environment.
The biodynamic method is similar to organic
farming but also reflects a spiritual and
ethical approach. The aim is to create a self-
sustaining system, in which natural materials
and composts are used to sustain the
vineyard. Biodynamic practices follow the
lunar calendar.
The concept of ‘sustainable winemaking’ is not
clearly defined, as there are countless ways in
which wine can be made in an environmentally
friendly manner. However, the overall aim is to
produce wine in a way that supports both the
environment and the local community.
We could say that the goal of ‘sustainable
farming’ is to leave the land in a better condition
than it was previously, with the aim of preserving
it for future generations.
WINE FARMING FOR A SUSTAINABLE FUTURE
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W W W . W S F S I C A V . C O M
90% OF EUROPE’S ORGANICVINEYARDS ARE FOUND INFRANCE, SPAIN AND ITALY
In 2017 around 4.5% of the world’s wine grape
vineyards were certified organic or biodynamic
(BD), a total of 316,000 ha of vines. Of this,
Europe’s 281,000 ha gave it an 80% share of the
global total. 90% of Europe’s organic vineyards
are found in three countries: Spain, France and
Italy (source: Millésime Bio 2017 dossier de
presse).
In March 2018 there were more than 616
wineries with Demeter biodynamic
certification worldwide, encompassing more
than 8,200 ha of vineyards. Demeter is known
worldwide as the ‘official’ body which sets
the standards for biodynamic farming,
including wine-growing and winemaking. To
be certified biodynamic, first the organic
certification must be obtained and the
biodynamic rules set by Demeter must be
followed. To be certified organic, the organic
standards must be followed and these are set
either by governments (federally in the US), or
by supra-national bodies such as the
European Union.
We could say that the goalof ‘sustainable farming’ isto leave the land in a bettercondition than it waspreviously, with the aim ofpreserving it for futuregenerations.
WINE FARMING FOR A SUSTAINABLE FUTURE
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W W W . W S F S I C A V . C O M
ORGANIC WINE CONSUMPTION
WINE FARMING FOR A SUSTAINABLE FUTURE
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W W W . W S F S I C A V . C O M
According to a study commissioned by SudVinBio
and conducted by the drinks research group IWSR,
'Organic wine consumption is forecasted to
increase to 976 million bottles in 2023, up 34%
from 729m bottles at the end of 2018, and more
than double from 441m bottles in 2013.' The report
goes on to say that this important increase
contrasts with “the steady decline of wine
consumption globally and reflects the ongoing shift
to better quality wines produced to higher
standards of sustainability.'
Nicholas Richarme, president of SudVinBio, says
that the research has demonstrated that
consumers are rejecting the use of pesticides and
other chemicals that can damage the environment
in food production. 'This trend will only increase as
large and small vignerons switch to more
sustainable winemaking, and retailers stock a large
range of organic wines to meet rising consumer
demand.'
The consumption of organic sparkling wine in
Spain, Italy, France, Germany and the US rose
at an average of 19.1% annually between 2013
and 2018. Of the five markets, France is on
the way to becoming the biggest consumer of
organic wine by 2023; in second place is
Germany, followed by the US.
Wine producers in regions such as France,
Italy, Spain and Germany have significantly
increased their organic production. This trend
will most likely continue and will be driven by
both Spain and France. It is forecast that, by
2023, Spain is likely to have three times the
number of organic vineyards it did in 2013,
covering a total of 160,000 ha.
ORGANIC SPARKLING WINE CONSUMPIONHAD AN AVERAGE RISE OF 19.1% A YEARBETWEEN 2013 AND 2018
WINE FARMING FOR A SUSTAINABLE FUTURE
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W W W . W S F S I C A V . C O M
A NEW GENERATIONOF WINEMAKERSRELIES ON A NEWERAPPROACH
We now see a generation of outstandingwinemakers, representing some of the besttalent in the world of winemaking, who rely ona newer approach. These new winemakersstand out in terms of quality, industryrecognition and value, and are exploring newmethods in order to preserve the terroir forthe future. Those producers are taking a more holisticapproach that considers the broaderenvironment in which their vineyards exist. Theobjective is to re-establish a naturalequilibrium by supporting biodiversity andlimiting intervention. We see two mainapproaches: some producers are consideringthe organic method while others believe in thebiodynamic one. This is the segment of the industry the VTFFund wishes to support through its expertiseand unique connection to the industry and itsleading players.
WINE FARMING FOR A SUSTAINABLE FUTURE
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W W W . W S F S I C A V . C O M
INVESTING IN SUSTAINBLYFARMED VINEYARDS By partnering with selected winemakers, VTF investsexclusively in vineyards farmed and maintained atthe highest standards, as required by the industry. The winemakers initially lease the land in which thefund has invested, and are subsequently motivatedto acquire this land after the initial lease periodends, as it becomes the key asset in the continueddevelopment of their brands. We work closely with these top winemakers inselecting judiciously chosen plots offering the bestopportunities for a strong return on investment. Just as we see with winemakers and consumers, theindividual investors’ interest is driven by convictionand choice. According to recent reports, 85% ofindividual investors and 95% of millennials wish tomake sustainable investments.
The currently available range of options andsolutions for sustainable investing has not keptpace with the investor demand. Thus, VTF is aninvestment solution in alignment with currentinvestor appetite for products adopting broadersustainability practices. We, at Vineyard & Terroir Fund, are thinkingtoday about how to plan for tomorrow’s realitiesand position ourselves in a long-term growthpattern thanks to our expertise within the wineindustry. We pursue sustainable investing as it reflects ourvalues. We focus on delivering innovations andsolutions to help wine producers maximise theirpotential for receiving private capitalinvestments and address the most pressingchallenges within the farming industry.
WINE FARMING FOR A SUSTAINABLE FUTURE
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W W W . W S F S I C A V . C O M
This article has been prepared by the Vineyard &Terroir Fund Team. Contact us [email protected] +33 7 60 52 05 84www.wsfsicav.com For our news and insights follow us on LinkedinVineyard & Terroir Fundwww.linkedin.com/company/36099142 For more information about how to invest in Vineyard& Terroir Fund, please request an investmentbrochure: www.wsfsicav.com/vtf/
WINE FARMING FOR A SUSTAINABLE FUTURE
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CONTACT
W W W . W S F S I C A V . C O M