VII WORLD WINE FORUM
Conclusions VII World Wine Forum
The regional Minister for Agriculture, Animal Husbandry and Rural Development of the Government of La Rioja and the president of the Employers’ Federation, Julián Doménech, closed the VII World Wine Forum which was held on 12, 13, 14 and 15 May in Logroño. The conclusions of the Forum were as follow:
1.- It is clear that we are faced with a changing context, especially from the economic point of view, to which the wine industry is not immune. Therefore, it is felt that it is at difficult times that we have to show greater strength, by adopting intelligent decisions and not only thinking about the present but also the future.
2.- To overcome the current crisis situation it is necessary to look for business differentiation, search for new markets, offer new products, but always with quality as the basis. In this sense it is essential to take up the challenge of internationalisation, particularly in emerging markets, faced with the certainty of finding ourselves in an extremely competitive, global context.
3.- Urgent reflection is needed regarding business structures and how to adapt the mechanisms for production, promotion and sale to match the real, current demand. Perhaps it is the right time to take important decisions which move towards regeneration of the sector or, in any case, its structural reorganisation.
4.- In the field of viticulture, adaptation is necessary through innovation and diversification. It is necessary to identify very clear goals and observe in which elements of the production process we can intervene to preserve quality with regard to conditioning factors such as climate change or the optimisation of processes.
5.- We must take advantage of the opportunities offered by genetic advances in vines to the benefit of the sector. Genetic selection, resistance to diseases and the multiplication of the most resistant genes are today’s tools for success. Moreover, sooner or later genetic engineering will come knocking at the door of the sector, indeed it is already doing so. In any case, wine will be one of the last foods to find itself among genetically modified products since we must not forget that the industry has a very traditional value which continues to think about the end consumer’s opinion.
6.- Viticulture is at an interesting point in its evolution, in its progress. New technologies and new trends are an important part in achieving this goal. However, it is necessary also to preserve the indigenous varieties so as to prevent the loss of genetic diversity of each region and to obtain this added value of differentiation. It is interesting to adopt measures which tend towards creating more variability and the improvement of the vines’ morphological features.
7.- We must be aware that the limitation of natural resources or their simple alteration, will condition such vital aspects of winemaking as alcoholic strength, acidity, aromas, accelerated ageing, etc. These questions impose an evolution, a reflection, compatible with the decrease in planting density or already visible matters such as the change in the systems of training the vines.
8.- As in all the other sectors, wine has to take on board the new trends from the consumer perspective. A good example of this is wine with low alcohol content. Thus research seems to be a necessary way of achieving this goal without losing quality and, in particular, to counteract the imposed conditioning factors (loss of organoleptic qualities, higher costs…) for the already more than familiar effect of climate change or new production methods.
9.- Another reality of the market is that it does not matter how traditional the image of a winery or of a particular wine may be, it cannot fall into the trap of doing nothing. Here too, the consumer appears as the vital figure, and the simplification of the information which he receives from the image of the wine: label, indication of the vintage, variety, winemaking region or ageing. We have to help the consumer to choose a product because, we must not forget, the company’s ultimate goal is to sell wine.
10.- New times bring us new habits and customs. The consumer profile has changed and today the cultural and health benefits considerations have led to an increase in women drinking to the point where they now make up 45% of the total, moving away from the myth that women prefer lighter wines. Trends have also changed with regard to the place where the wine is purchased with supermarket shopping growing in importance.
11.- Simplification of labelling must not mean that it does not have to provide full information of use to the consumer, who not only wants healthy, more sustainable wines, but also clear information on the bottle that they buy. A good example of this are the new CO2 calculations through the carbon footprint in the effect that wine production has on environmental factors such as the greenhouse effect.
12.- A wine market cannot be understood without taking new technology into account: on-line selling, blogs and a more casual dimension which involves the public in consumption. As well as selling wine, it is about transmitting values and providing an incentive for active participation which leads to a social dimension.
13.- It is very important, from the political and administrative perspective, to work to find formulas which, supported by authorised technological contributions, offer flexibility to the application of certain rules which do not reflect reality and the specific needs of a particular location. At the crux of this question we find the future liberalisation of plantations proposed by the European Union, which are clearly not in the interests of the models applied by the Designations of Origin, which could find a solution in an exception for the regulation of their winemaking potential.
14.- In the international market, if the US is the reference, China is the future. The Asian market is still to be discovered in this regard, with a potential direct market of 70 million people. For this, more planning is necessary, and perfect understanding and knowledge of the channels of entry into the country (especially in view of customs duties) and the positioning of the brand through the right promotion, aimed at a public which is new to drinking fine wines.
15.- Another reality is that the offer of wine does not always adapt to the speed at which the markets it is aimed at can change. The United Kingdom is a good example, where the consumer pays increasingly more attention to special offers, so that a reduction in cost without affecting quality would be advisable. The price factor, in a wide range of wines from many different countries and regions of origin, requires other criteria to impose themselves, such as design, tradition, history… which have a strong presence in Spanish wines. So the adaptation of the sector to these markets is urgent.
16.- The ‘grocery’ channel is essential for recovering and encouraging wine consumption in Spain. Thus formulas which encourage drinking in moderation and in a healthy way and the modernisation of distribution, in which wine transactions appear attractive and profitable, must guide the strategy which leads to a change in mentality and of the business model.
17.- In such times of change we must also incorporate a new way of dealing with the media in the sale and promotion of our product. Even marketing is moving towards the 2.0. concept. Unilateral communication is a thing of the past. One can no longer conceive of a sale but rather of feedback with the customer. In this sense, Internet offers itself as a fundamental tool in which all the trends and opinions have a place; from which we must build our image.
More information
VII Foro Mundial del Vino
Tel. 941 276226
comunicacion@forovino.com
Technical Secretary Hermanos Moroy 8, 4º.
26001 Logroño, La Rioja. Spain.
Tel: (+34) 941 27 12 71
Fax: (+34) 941 26 25 37 forovino@fer.es
Scientific Coordination and Secretariat ECCYSA-La Rioja Calidad
Parque San Adrián 9
26007
Logroño. La Rioja. Spain.
Tel: (+34) 941 51 25 71
Fax: (+34) 941 51 25 83
e-mail: forovino@eccysa-rioja.com