{"id":26099,"date":"2017-11-15T22:46:57","date_gmt":"2017-11-16T03:46:57","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/is-happy-hour-over-the-impact-of-climate-change-on-e-j-gallo-winery\/"},"modified":"2017-11-15T22:51:41","modified_gmt":"2017-11-16T03:51:41","slug":"is-happy-hour-over-the-impact-of-climate-change-on-e-j-gallo-winery","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/is-happy-hour-over-the-impact-of-climate-change-on-e-j-gallo-winery\/","title":{"rendered":"Is Happy Hour Over? The Impact of Climate Change on E & J Gallo Winery"},"content":{"rendered":"

The Problem<\/strong><\/p>\n

For wineries such as E & J Gallo, climate change is a major potential disruption to their business. Grapevines are heavily sensitive to climate variation – quality and yield are hurt by rising temperatures, declining precipitation, and an increase in extreme weather events\u00a0[1][2]. Vine trunks can be damaged by sudden temperature drops in the fall and by sub-zero temperatures in the winter, while early warming spells can pull vines out of winter dormancy too early and leave the plants susceptible to subsequent freezing. Irreparable damage to vine trunks from these extreme weather events means the vines have to regrow from the roots, a process which takes years [3].<\/p>\n

All of these factors sum up to a troubling future for major wine producing regions like California (the primary location for E & J Gallo\u2019s vineyards). A study published in 2013 estimated that in major wine producing regions, the area suitable for wine growing would decrease by 25% to 73% by 2050 (see Exhibit 1) [4].<\/p>\n

There are early signs that the industry is already feeling the impact of climate change, with global wine production estimated to drop by 8% in 2017 [5]. In the last two years, wine grape growers in the western US have harvested their crops 4-6 weeks earlier than was normal 25 years ago, which has impacted the character of the fruit and flavor of the wine [6].<\/p>\n

Exhibit 1:<\/span>\"\"<\/a>[7]<\/p>\n

As wine producers look to address the issue of climate change, they have three main variables they can flex: changing vineyard location, changing grape varieties, and changing winemaking practices.<\/p>\n

Current Solutions<\/strong><\/p>\n

Wine companies have already started to take on a number of actions to address this problem. Due to their size, large growers like E & J Gallo are able to diversify by having a portfolio of land across a variety of regions and climates. This allows them to reduce the risk of being significantly impacted by one particular region being hit by drought or frost. Growers are also shifting their geographical focus towards areas where temperatures are cooler – moving towards more northern areas, higher elevations, and areas closer to the coastline [8]. Vineyards are already rapidly expanding in new geographies in North America, including eastern Washington, Idaho, and in British Columbia [9].<\/p>\n

In addition to adapting to the impact of climate change, the industry is also making an attempt to reduce its own contribution to the problem. E & J Gallo was part of a group of growers that helped create the Code of Sustainable Winegrowing in collaboration with the California Sustainable Winegrowing Alliance [10]. The goal of this code is to help develop and spread the use of sustainability strategies in the California winegrowing community.<\/p>\n

Future Solutions<\/strong><\/p>\n

Looking to the future, there are a number of additional ways in which viticulturists could address this issue as it continues to advance. Farming techniques to mitigate the impact of heat stress include hanging shade cloth, positioning rows on a sun-sheltered northern slope, or increasing the use of irrigation of misting on vines [11]. A large player like E & J Gallo could also use its industry influence to form a cooperative that researches additional winemaking practices which mitigate the negative impact of climate change (similar to its industry collaboration work on the Code of Sustainable Winegrowing).<\/p>\n

Vineyards can also use experiment with grapes that are better suited for warmer or drier climates. Researchers have resurrected old wine varieties and tested them for their ability to thrive in hot, arid climates [12].\u00a0Some wine varieties have berries which can restrict or slow leaf growth or have advantageous ripening periods, leading to better water retention. Researchers also point to the opportunity to cross-bread diverse lineages to create offspring that are better suited for specific climates [13].<\/p>\n

While climate change presents many risks for the industry as the whole, it might also present an opportunity for more adaptive producers to outperform slower-moving competition. Winemaking in Europe is steeped in cultural norms and tradition which might make it more difficult for the region to make the adaptations required to address climate change. For certain types of wine (such as Champagne or Bordeaux), strict requirements around geography and winemaking practices are actually codified in international trade agreements, adding additional barriers to change for wine producers [14].<\/p>\n

Open Questions<\/strong><\/p>\n

Can an industry like wine production, which is so steeped in tradition and heritage, adapt quickly enough to deal with the changes stemming from climate change? Are there other ways in which wineries can adapt their strategy to mitigate the impact of this issue?<\/p>\n

Word Count = 763<\/p>\n

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[1] Emily Benson, \u201cThe wine industry\u2019s battle with climate change,\u201d High Country News, May 1, 2017, [http:\/\/www.hcn.org\/articles\/wine-in-the-wests-changing-climate], accessed November 2017<\/p>\n

[2] Lee Hannah et al, \u201cClimate change, wine, and conservation,\u201d Proceeding of the National Academy of Sciences, vol. 110 no. 17, 2013. http:\/\/www.pnas.org\/content\/110\/17\/6907<\/a>, accessed November 2017<\/p>\n

[3] Emily Benson, \u201cThe wine industry\u2019s battle with climate change,\u201d High Country News, May 1, 2017, [http:\/\/www.hcn.org\/articles\/wine-in-the-wests-changing-climate], accessed November 2017<\/p>\n

[4] Lee Hannah et al, \u201cClimate change, wine, and conservation,\u201d Proceeding of the National Academy of Sciences, vol. 110 no. 17, 2013. http:\/\/www.pnas.org\/content\/110\/17\/6907<\/a>, accessed November 2017<\/p>\n

[5] \u201cGlobal Economic Vitiviniculture Data,\u201d press release, October 21, 2017, on OIV website [http:\/\/www.oiv.int\/public\/medias\/5681\/en-communiqu-depresse-octobre-2017.pdf], accessed November 2017<\/p>\n

[6] Emily Benson, \u201cThe wine industry\u2019s battle with climate change,\u201d High Country News, May 1, 2017, [http:\/\/www.hcn.org\/articles\/wine-in-the-wests-changing-climate], accessed November 2017<\/p>\n

[7] Lee Hannah et al, \u201cClimate change, wine, and conservation,\u201d Proceeding of the National Academy of Sciences, vol. 110 no. 17, 2013. http:\/\/www.pnas.org\/content\/110\/17\/6907<\/a>, accessed November 2017<\/p>\n

[8] Brian Handwerk, \u201cNew Vineyards Could Create Conservation Challenges,\u201d National Geographic News, April 11, 2013, [https:\/\/news.nationalgeographic.com\/news\/2013\/03\/130409-wine-vineyards-climate-change-culture-science\/], accessed November 2017<\/p>\n

[9] Lee Hannah et al, \u201cClimate change, wine, and conservation,\u201d Proceeding of the National Academy of Sciences, vol. 110 no. 17, 2013. http:\/\/www.pnas.org\/content\/110\/17\/6907<\/a>, accessed November 2017<\/p>\n

[10] \u201cCalifornia Code of Sustainable Winegrowing Workbook \u2013 Third Edition\u201d, [https:\/\/www.sustainablewinegrowing.org\/docs\/California-Code-of-Sustainable-Winegrowing-3rd-Edition.pdf]<\/p>\n

[11] Lee Hannah et al, \u201cClimate change, wine, and conservation,\u201d Proceeding of the National Academy of Sciences, vol. 110 no. 17, 2013. http:\/\/www.pnas.org\/content\/110\/17\/6907<\/a>, accessed November 2017<\/p>\n

[12] Matthew Sedacca, \u201cResurrecting Ancient Wines That Can Survive Climate Change,\u201d The Atlantic, July 17, 2017, [https:\/\/www.theatlantic.com\/science\/archive\/2017\/07\/at-least-there-will-be-good-wine\/533886\/], accessed November 2017<\/p>\n

[13] E.M Wolkovich et al, \u201cPhenological diversity provides opportunities for climate change adaptation in winegrapes,\u201d Journal of Ecology, Volume 105, 2017. http:\/\/onlinelibrary.wiley.com\/doi\/10.1111\/1365-2745.12786\/full<\/a>, accessed November 2017<\/p>\n

[14] Agreement between the United States of America and the European Community on Trade in Wine, March 10, 2006<\/p>\n","protected":false},"excerpt":{"rendered":"

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