PERNOD RICARD OFFERS FREE “SUSTAINABLE” ONLINE BARTENDING COURSE

Pernod Ricard has just announced the launch of its online sustainable and responsible bartending training modules, targeting bar professionals.

The Covid-19 crisis has hit the hospitality industry hard. French drinks giant Pernod Ricard predicts solidarity, sustainability and responsibility will be paramount in future, and as such, the company has partnered with online training providers UNITAR and EdApp to create free bartending online courses on green and responsible practices, available worldwide.

Pernod Ricard’s in-house training group Pernod Ricard University has developed the courses in partnership with anti-waste bartending organizations TrashTiki and the Sustainable Restaurant Association. The curriculum covers all aspects of sustainability and responsibility – from fresh ingredient use and responsible serving of alcoholic beverages to waste management – directly aligned with the Sustainable Development Goals (SDGs). It is based on four pillars (ingredients, service, bar and staff) and assesses each through the 5Rs model: Rethink, Reduce, Reuse, Recycle and Respect.

There is also a stand-alone course dedicated to alcohol and responsible drinking. This course focuses on what alcohol is, differentiates myths from facts, and equips users with knowledge to encourage responsible drinking.

Vanessa Wright, Vice President of sustainability and responsibility at Pernod Ricard, commented: “As Créateurs de Convivialité, we strongly believe in sharing with others and supporting communities. During the Covid-19 crisis, among other initiatives, our Group has been supporting the bartending community through various projects including Jameson’s partnership with the US Bartenders’ Guild, Pernod Ricard South Africa’s donation to local hospitality workers and the J’aime mon Bistrot programme in France.

“Bartenders, and the hospitality industry more broadly, have always been very important partners, as well as drivers of innovation – perfectly placed at the forefront of our changing world, embedding sustainable and responsible practices and enabling others to do the same. In preparing for the future, this online training module is another milestone of our joint journey towards the bar world of tomorrow.”

Click here to access the online course for more details.

 

 

 

WBWE Asia Launches Virtual Wine Exhibition July 12-13 in Yantai

The World Bulk Wine Exhibition, WBWE Asia has just launched a virtual wine exhibition, which will include an online trading system in which wineries will establish direct contact with buyers.

How it will work

The technology-based communication system will allow wineries to close deals without being in person at the trade fair. Wines will be shipped to China as usual and displayed with a promotional stand, material and staff representing the winery. Chinese buyers and merchants will be able to taste the wine and can ask winery managers any further details via WBWE Asia’s virtual system.

WBWE will be inviting buyers, purchasing managers, consultants, managers, merchants and the media to the fair on 12-13 July in the city of Yantai. All attendees will receive a list of those exhibiting before the show starts.

Winery managers who are unable to travel to the exhibition can instead “virtually attend”.

The statement noted: “Winery managers will be able to do business from their offices or their place of origin, whilst virtually attending the fair with the same trading warranty as if they were in China.

“Right now, it is too soon to be certain that the fairs of the future will follow this route, yet we cannot afford to run the risk of stopping exports while we wait to see what unfolds.”

“WBWE Asia ensures that your winery is accurately displayed and that your wines are available to be tasted by an important portfolio of buyers and distributors from China, whether you can attend the fair in person or via the internet.”

WBWE Asia noted that the bulk wine market was helping the Chinese market to recover from Covid losses. Imports of bag-in-box (BIB) to China rose from 1.12 million litres to 1.14 million litres in the first quarter of 2020.

World Bulk Wine Exhibition ASIA Website wbweasia.com

Vinexpo New York is hosting a free webinar “The Evolving Landscape of the (US) Wine & Spirits Industry”

Despite the challenges the past few weeks have presented, many wineries have successfully shifted their strategies and modified their businesses. They’re not only supporting their staff and customers, but also those on the front lines while keeping business moving.

Attend this free webinar, where you will hear from industry members across the three-tier system and learn what changes they have made, how they continue to adapt and what they expect in the coming weeks.

“The Evolving Landscape of the Wine & Spirits Industry” webinar will take place on Tuesday 5 May at 11:00 am EST.

Among several speakers will be Michael Baum, CEO & Propriétaire, Château de Pommard, Scott Zoccolillo, sommelier and wine director at Del Frisco’s Double Eagle Steakhouse in Philadelphia, and Margie A.S. Lehrman, who is chief executive officer of the American Craft Spirits Association.

Register here https://www.vinexponewyork.com/webinars/the-evolving-landscape-of-the-wine-spirits-industry/

Pau Roca, Director General of OIV gives his overview of the 2019 global wine sector and the impact of Covid-19

Speaking from the OIV’s [International Organisation of Vine and Wine] headquarters in Paris, by web conference to over 3,000 international wine journalists, and trade, Director-General Pau Roca presented today [April 23, 2020] details of the 2019 wine production, consumption, and international trade. The impact of Covid-19 in the sector was also highlighted.

Here are the important facts and highlights of today’s Conference:

  • The surface area of the world vineyard is estimated at 7.4 mha, which has been stable since 2016;
  • World wine production is estimated at 260 mhl, a marked decrease, compared to 2018 historically high;
  • World wine consumption is estimated at 244 mhl, marking a +0.1% with respect to the previous year;
  • The world wine export market has expanded both in volume, estimated at 105.8 mhl (+1.7%), and in value with 31.8 bn EUR (+0.9%);
  • 2020 Harvest – first estimates of wine production in the Southern Hemisphere indicate low expected volumes for 2020 (with the exception of South Africa and Uruguay).

Vineyard area stabilization

In 2019 the world area under vines, corresponding to the total surface area planted with vines for all purposes, including young vines not yet in production, is estimated 7.4 mha.

Starting with the Northern Hemisphere, overall stability can be observed in the European Union (EU) vineyards, which stands for the fifth consecutive year at 3.2 mha.

Within the EU, the latest available data for 2019 indicates an increase in the area under vines in France (794 kha), Italy (708 kha), Portugal (195 kha), and Bulgaria (67 kha). The vineyard surface area in Spain (966 kha), Hungary (69 kha) and Austria (48 kha), on the other hand, slightly decreased from 2018.

In East Asia, after over 10 years of significant expansion, the growth of Chinese vineyard (855 kha), second in the world by surface area just behind Spain, seems to be slowing down.

In the United States, the vineyard has been consistently decreasing since 2014, and its estimated surface area in 2019 is 408 kha.

In South America, developments in vineyard surface area between 2018 and 2019 showed a downward trend for the fourth year in a row.

The only exception in the continent is represented by Peru that increased by 7.1 kha (+17% / 2018) its vineyard surface area reaching 48 kha.

South Africa’s vineyard surface area remained stable with respect to 2018, at 128 kha.

Australia the area under vines remained stable at 146 kha in 2019; while New Zealand the surface area grew by 1.6 % reaching a record-high of 39 kha.

Production back to the average

World wine production, excluding juices and musts, in 2019 is estimated at 260 (259,0) mhl, marking a sharp decrease of 35 mhl (-11.5%) with respect to the exceptionally high volume recorded in 2018. Overall, after two consecutive years that can be defined as extremely volatile, 2019 brings global wine production back to average levels.

Italy  (47.5  mhl), France (42.1 mhl), and Spain (33.5  mhl), which together account for 48% of world wine production in 2019, saw a sharp decrease in their wine production with respect to 2018.

Other EU countries that registered a decrease in production with respect to 2018 are Germany (9.0 mhl, -12%), Romania (5.0 mhl, -4%), Austria (2.5 mhl, -10%), Hungary (2.4 mhl, -34%) and Greece (1.9 mhl, -8%). The only EU country that, in 2019, saw an increase in its wine production is Portugal with 6.7 mhl (+10% / 2018).

In Eastern Europe, weather conditions were favourable in Russia (4.6 mhl, +7% / 2018) and Ukraine (2.1 mhl, +6% / 2018), while in Moldova the harvest was less abundant in 2019 and the vinified production was equal to 1.5 mhl (-23% / 2018).

In Asia, the new data available for China indicate an estimated vinified production of 8.3 mhl in 2019, marking a decrease of -10% with respect to the already relatively low production level of 2018.

In North America, wine production in the USA is estimated at 24.3 mhl, a decrease of 2% compared to 2018. This slight decline in 2019 does not depend on bad weather conditions or the raging fires that occurred in California (harvest was just before), but it is a response to overcome an oversupply of grapes and wine.

In South America, the overall trend for wine production in 2019 is negative with respect to 2018. However, while in Argentina (13.0 mhl) and in Chile (12.0 mhl) 2019 vinified productions are lower with respect to 2018 but overall in line or even higher than their five-year averages, Brazil (2.0 mhl) registered a sharp decrease in its wine production in 2019 of more than 1 mhl (-34% / 2018).

In South Africa, 2019 production reached 9.7 mhl. This represents an increase of +3% with respect to the low volume registered in 2018, but it is still far from the average production levels recorded before the beginning of the drought that heavily impacted the country for three years in a row (2016, 2017 and 2018).

With regard to Oceania, Australian wine production registers a decline for the second consecutive year reaching 12.0 mhl in 2019 (-6% / 2018). In New Zealand wine production was 3.0 mhl in 2019, a slight decrease of -1% with respect to 2018.

Expansion of the international trade of wine

In 2019 the world wine export market – considered here as the sum of the exports of all countries – has expanded with respect to 2018 both in volume, estimated at 105.8 mhl (+1.7%), and in value, with 31.8 bn EUR2 (+0.9%).

Strong increases can be observed in exports from Italy (+2.0 mhl), Spain (+1.3 mhl), Canada (+0.4 mhl) and Chile (+0.3 mhl). However, significant reductions in exports are recorded for Australia (-1.1 mhl), South Africa (-1.0 mhl), Ukraine (-0.4 mhl) and Hungary (-0.3 mhl).

In 2019 the global value of wine exports is on the sustained growth path started in 2010 reaching a new record high. France was still the most important world exporter in terms of value, with 9.8 bn EUR exported in 2019. There were rises in the value of exports in many large exporting countries like France (+425 m EUR), Italy (+211 m EUR), and New Zealand (+84 m EUR). The largest declines include Spain (-234 m EUR) and South Africa (-73 m EUR).

In 2019 the international trade of wine in terms of volume was mainly dominated by three European countries – Italy, Spain, and France – that together exported 57.1 mhl, accounting for 54% of the world market.

In 2019 the top three importers in terms of volumes were Germany, the UK, and the USA, which together imported 40.4 mhl, reaching 38% of world total. These three countries represent 39% of the total value of world wine imports, reaching 11.9 bn EUR.

The first importer in 2019 is still Germany with 14.6 mhl, even if its wine import volume decreases by 0.6% compared to 2018.

China for the second consecutive year saw a significant decline in its imported volumes (-11% / 2018), reaching 6.1 mhl in 2019. In terms of value, the trend is similar, with an overall downfall of -9.7% compared to 2018, reaching 2.1 bn EUR. The only category that increased both its volume (+8%) and its value (+8%) is sparkling wine, although it represents only 2% of the total imported volume.

Early estimates of the 2020 harvest in the Southern Hemisphere

First estimates of wine production in the Southern Hemisphere indicate low expected volumes for 2020 for the majority of countries, with the exception of South Africa and Uruguay.

In 2020 a decline in production volumes in all South American countries, with the exception of Uruguay, are expected. In Argentina estimated production is 11.6 mhl (-11%), in Chile 10.5 mhl (-12%) and in Brazil 2.0 mhl (-1%), while in Uruguay 0.65 mhl (+11%).

South Africa seems to continue its recovery path from the drought and expects +5% with respect to last year, reaching 10.2 mhl.

In Oceania, Australia expects a lower production level in 2020 estimated at 11.5 mhl (-4%) due to drought and bushfires while in New Zealand (2.9 mhl, -2%) expectations on wine production are by and large in line with 2019, or just below.

These are preliminary estimates and should be interpreted with caution,  given the current exceptional circumstances.

Impact of Covid-19 in the wine sector

At this early stage the information and statistical data available are insufficient to provide an accurate forecast and anticipate the scenario of the vitivinicultural sector in the future. However, due to communication with OIV members (“Member States”), the OIV has certain qualitative information at its disposal.

The feedback given by the Member States reflects a radical change or transfer between distribution channels. The expected overall balance is a decrease in consumption, a reduction in average prices, and therefore an overall decrease in total sales value, turnover, margins and finally profits of the wineries.

As far as exports are concerned, economies in recession are not a promising market to develop, and during this pandemic, the largest consuming countries have been the most affected. Trade flows may recover along with the economy, but some permanent changes could occur.

Alcohol consumption is also being debated. Messages on the positive effects of wine consumption are totally unacceptable and irresponsible.

The same applies to the issuing, under these circumstances, of general statements or biased messages that are the result of ideological concerns about wine consumption, such as abstention.

The OIV’s work follows the Strategic Plan approved by the General Assembly in October 2019 and covers a 5-year period until 2024. In the current context, the objectives and goals of the OIV go hand in hand with the needs that this crisis has highlighted.

The OIV is the intergovernmental organization of scientific and technical nature of recognized competence for its work concerning vines, wine, wine-based beverages, and other vine-based products. It is composed of 47 Member States. In the framework of its competence, the objectives of the OIV are as follows:

  • to inform its members of measures whereby the concerns of producers, consumers and other players in the vine and wine products sector may be taken into consideration;
  • to assist other international organizations, both intergovernmental and non-governmental, especially those that carry out standardization activities; and
  • to contribute to international harmonization of existing practices and standards and, as necessary, to the preparation of new international standards in order to improve the conditions for producing and marketing vine and wine products, and to help ensure that the interests of consumers are taken into account.

Wine in a can is a robust trend and not a short-term fad

With the traditional wine market in the US growing at an increasingly slow pace, successful wineries 10 years from now will be those that have adapted to a different consumer with different values.  Wine in a can is no new thing; it was first seen in World War 1 when the French army had their wine rations delivered this way.

WICresearch.com has done an in-depth study of the drivers that are affecting the boom in the wine-in-can market and it is predicted that the trend will continue to grow as it has done exponentially in its infancy.  The most important factors to consumers when it comes to wine-in-can are taste, quality and value, followed by convenience, portability and fun.  From 2017-2108 the wine-in-can market grew by 43%.  It is a market that cannot be ignored as the industry needs new growth places.

There are 6 main drivers that are promoting the expansion of wine-in-can, as follows:

Convenience

This is the most obvious benefit and relates to the carrying, opening and finishing of the product.  One is able take a can where it is illegal or inconvenient to bring a bottle or any glass.  The single-serve size also allows for zero waste of the contents, and it removes the need for traditional wine paraphernalia: foil cutters, corks screws. Under the convenience banner, the wine vending machine is also a trend that is starting to gain traction, certainly opening new markets in terms of novelty and availability.

Occasion expansion

This is based on both location and event. Location involves places where taking a bottle of wine is not suitable nor practical: boats, beach, swimming pools.  Event expansion is where offering a single-serve beverage is desirable e.g.BBQ, picnic.

It is interesting that wine-in-can drivers such as these are not cannibalizing the existing market with its meagre growth of 1-4% but it is rather creating an extension of markets or even new markets and thus creating strong double-digit growth.

Sustainability and cost savings

Aluminum is 100% recyclable and so the environmental footprint is greatly reduced, and the product attracts an eco-friendly consumer who values sustainability.  Research has shown that 51% of Millennials check the packaging before purchase for sustainability claims.

 Facts:

  • Sustainable products grew 4x the rate of non-sustainable products (Nielsen)
  •  Consumers are willing to pay 15% more for sustainable packaging (McKinsey)
  • 66% of consumers will pay more for sustainable brands (Nielsen)

Packaging in aluminum cans also produces a saving of 15-20% with some manufacturers suggesting 40% due to efficiency of packing and transport, lack of breakage, and lighter weight.  Therefore, carbon emissions for transportation are also lower. Also, savings occur in establishments serving wine by the glass, as there is total accuracy over the serving size with no shrinkage.

Portion control and variety

Apart from the benefit of not having to open a whole bottle when you would like to enjoy a glass, there is also no issue of dealing with unfinished wine.  The wine-in-can movement is very popular with restaurants that have less waste and leftover wine, or the problem of customers wanting to cork their bottle to take it home which is illegal in many parts of the world.

Due to the small serving, wine drinkers can enjoy different varieties of wine with different courses, instead of a full bottle of the same wine.

Visual image and branding

An aluminum can has a 360-degree label rather than just a front and a back.  It gives the product a cooler, more photographable, Instagrammable look.

“With 64% of consumers trying a new [wine] product simply because the package catches their eye, packaging design is one of the most underappreciated marketing levers” (Freeman, 2016).

Designers can go so far as to make the packaging glow in the dark.

Quality

“You actually have a really stable environment in a can…There’s no UV penetration or oxygen exchange like there would be through a cork and glass bottle” (Drinks News, 2018).

For still and sparkling wine, the integrity of the product can easily be preserved.  The dark, oxygen-free environment for still wine is ideal while for sparkling, the effervescence is contained in a small space.

There is ongoing research for different types of cans, linings and filling systems to ensure further integrity of the product as well as preserving its future life which is, as yet, unproven.

It is interesting to note that the wine-in-can purchase is not affected by gender, education nor generational group.  There is also no difference in self-reported wine knowledge i.e. consumers with a high level of wine knowledge are just as likely to buy wine in cans.

In a 2019 a blind taste test of wine-in-can versus wine-in-bottle was conducted. The identical wine from the same winery in both packaging formats was poured.  There were 4 different varietals and the experiment was done in 2 different locations.  51.1% said they either preferred the wine-in-can or that they could tell no difference between the two.

Wine-in-can is a growing market and innovation and interesting marketing tools are emerging every day.  It will be a very interesting space to watch over the next decade.

WICresearch.com

Jenny Ratcliffe-Wright
Cape Wine Master