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The Perishables Ecosystem –Food, Wine, Cannabis & More

Younger Consumers Willing To Pay More For Sustainably Produced Wine

Lara L. Sowinski · June 2020 ·

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The latest wine industry research shows younger consumers are leading the push for sustainably produced wine and they’re willing to pay more for it. 

“Younger consumers of legal drinking age are significantly more engaged with sustainability and view it as increasingly important to protect future resources,” notes Lulie Halstead, CEO of London-based Wine Intelligence. 

According to research from Wine Intelligence and Full Glass Research of Berkeley, California, nine out of 10 Millennials are willing to pay more for sustainably produced wine. 

In a survey of U.S. wine consumers representing various age groups, $3 was the average additional amount they were willing to pay for sustainably produced wine. Consumers also want it to be easy to find and identify sustainable wine, both on the label as well as at the retailer, and they support the use of sustainability certifications in the wine industry.

Full Glass Research’s Christian Miller adds that “large majorities at all levels of the trade felt familiar with key concepts of sustainable wine production, and do recommend sustainably produced, organic and biodynamic wines to their customers.”

Seventy-three percent of the wine trade surveyed believe demand for sustainably produced products has increased over the past five to 10 years, and 76 percent think it will increase in the next five to 10 years.

The California Sustainable Winegrowing Alliance describes sustainable winegrowing practices as those that help reduce water and energy use, minimize pesticide use, build healthy soil, protect air and water quality, recycle natural resources, maintain surrounding wildlife habitat, provide employee education, and communicate with neighbors about vineyard and winery operations.

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Filed Under: Wine/Beer/Spirits Tagged With: Sustainability

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I VOTED (for cannabis)

No matter their political stripe, many Americans are in agreement with efforts to legalize recreational and medical cannabis.

On November 3, voters legalized marijuana for adult use in Arizona, Montana, New Jersey and South Dakota. Initiatives to legalize medical cannabis passed in Mississippi and South Dakota. The rapid expansion of legalized cannabis throughout the U.S. has a direct impact on the supply chain.

Let’s start by considering the food supply chain–a valuable case study with COVID-19 as the backdrop. Early on, Americans experienced food shortages at the retail level. Manufacturers and distributors scrambled to realign networks to supply grocery stores where demand was spiking, while shifting away from restaurants and the hospitality sector where demand was tanking. In a matter of months, online shopping and food delivery to consumers’ homes grew dramatically. As a result, the food supply chain is in the midst of reinventing itself.

The cannabis supply chain faces some similar challenges. Most importantly, there’s an opportunity now to learn and adopt best practices from the food and pharmaceutical supply chains with which it shares key commonalities.

What are the risks to the cannabis supply chain? California’s unprecedented fires this year threatened growers throughout the state. How quickly can infrastructure scale-up to meet demand, and at what cost? Commercial and industrial real estate is currently at a premium with the proliferation of e-commerce. What about transportation, distribution and logistics capabilities, including reverse logistics in the case of product recalls? Facilities, equipment, and skilled workers are in high demand, and as competition for these various assets tightens, what does that mean for the entire perishables sector (food, cannabis, wine, beverages, pharma, etc.) that need them? Collaboration and creativity can provide critical solutions across the board.

On a related note, a small handful of American and European companies are in talks with Rwanda now about exporting cannabis to the country to meet rising pharmaceutical demand. Supply Chain Sparrow has previously identified cannabis exports as a massive opportunity for the U.S., which of course, would require legislative changes at the federal level.

Vote. And keep on voting.

Be Brave. Fly Right. And keep in touch at info@scsparrow.com.

Lara L. Sowinski, Executive Editor

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