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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

https://www.wsfsicav.com/vtf/


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

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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.


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ORGANIC WINE CONSUMPTION


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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


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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.


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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.


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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/


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CONTACT


https://www.wsfsicav.com/

https://www.linkedin.com/company/36099142




wine farming for a sustainable future - wsfsicav.com€¦ · wine farming for a sustainable future...

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