Wine of Moldova offers a glimpse of the future with its game-changing AI tool

The Moldovan wine industry, following its reception at ProWein, has entered a critical juncture. After the successful unveiling of two wines produced with the support of Artificial Intelligence, key stakeholders will seek further collaboration with the nation’s burgeoning tech and design sectors in the coming years, using innovation to strengthen their global competitiveness.

According to Wine of Moldova, this new landmark AI project involves a strategic partnership between several institutions: the National Office of Vine and Wine, the creative media technology hub, Mediacor, and the Technical University of Moldova. The goal is to set a global precedent for the unification of Artificial Intelligence and human expertise, in addition to facilitating ongoing development via the use of new technologies; $500 million has been earmarked for vineyard expansion, technological innovation, and production capacity.

Robert Joseph, consultant and author, commented: “A changing climate – which means far greater vintage variation as well as higher temperatures – requires innovative solutions. This project gives wine producers access to the nation’s growing AI expertise that could be a game-changer.”

At ProWein this year, a white blend of Feteasca Alba, Feteasca Regala and Viorica and a red wine Feteasca Neagra were presented to an international audience, both created with the assistance of Artificial Intelligence.

The wine industry is essential to Moldova’s economy, contributing around 3% of GDP and 8% of total exports, contributing to the livelihoods of over 50,000 families in rural areas. Premium labels are exported to 72 different countries – 55 percent of the country’s total exports are shipped to the EU.

“Moldova boasts a growing number of small new wineries, with young winemakers, while its larger ones are investing in vineyards and cellar equipment to produce more premium wines,” said Diana Lazar, AI Wine project lead.

Like every other wine-producing country, Moldova faces a range of challenges. However, stakeholders are in a strong position to meet these difficulties head on, taking full advantage of the solutions presented by future tech. A new era of cooperation between winegrowers and digital innovators has begun as Moldova offers valuable lessons for the rest of the world.

Video – https://www.youtube.com/watch?v=uCDUwK3Nv7A

Global wine consumption could see a ‘shift’ by 2027

Wine consumption trends could “shift” according to a new report analyzing the global wine market changes between 2022 and 2027. This new report was led by analysts at Research and Markets of which findings were brought together by multiple data sources, which collates data from over 107 countries.

The data showed that the global wine sector was valued at US$346.8 billion in 2022 and is expected to register a compound annual growth rate (CAGR) of 8.8% during 2022-27 to reach US$528.2 billion. Additionally, in volume, the findings show that the global wine market will reach 26.7 billion litres in 2027, up from 24 billion litres in 2022 with leading territories being Western Europe with a 49.5% market share, followed by the US with 21.6%.

The report also provides an overview of changes in the consumption of wine over 2017-27, at global and regional levels and has hinted that it pinpoints “high potential countries” for wine consumption as well as provides analysis based on market assessment, economic development, governance indicators, socio-demographic factors, and technological infrastructure. Offering a more-detailed analysis of each of the countries, analysts have revealed that the data covers the key challenges, competitive landscape and demographic analysis that can help companies gain insight into the country-specific nuances. The report also noted that the analysts have outlined how the findings will contain significant emphasis on the key trends that drive consumer choice and the future opportunities that can be explored to help the sector and wineries boost revenue.

The wine world has long been expanding as more regions come into the international limelight and new markets continue to develop.

Link to Report: https://www.researchandmarkets.com/report/wine

Wines of South Africa Export Report 2023: Positive Value Growth, Despite Challenging Global Economy

The year 2023 will undoubtedly be remembered by the world’s wine fraternity as one of the most challenging.

This rings true in the context of South African wine exports as well, with volume declines of 17%, resulting in total export volumes of 306 million litres. The silver lining for South African producers can be seen in positive value growth of total exports to a respectable US$540 million (R10 billion), despite the volume decline.

Harvest 2023 saw production volumes decline by 14%, a scenario echoed by the OIV report which highlights smaller harvests globally for the year, however, the realities of excessive stocks in both northern and southern hemisphere producing countries, has had an adverse effect on pricing on the whole. This can especially be seen at the lower- and entry level segment of the wine markets where trading is particularly competitive and pricing within this commodity sector leading to a ripple effect throughout the value chain.

Despite these challenges, South African wines are still making waves internationally with continuous positive recognition from critics such as Tim Atkin, MW in his latest South African report and Anthony Mueller’s latest report on the Wine Advocate platform. It is this reputation for top quality wines that seem to be setting South African wines apart from many of our counterparts and fueling the positive premium growth trajectory.

“The consistent positive ratings and accolades achieved by South African wines has most certainly solidified our positioning in international markets. Quality remains our focus and the consistency that we have seen, along with viticultural improvements, embracing new technologies both in the vineyards and cellars, will allow for the continued upward trajectory in this regard. This is why buyers remain confident in their support of our wines,” comments Wines of South Africa CEO, Siobhan Thompson.
She adds, “Thanks to our unique terroir, our producers are known for making wines that are unique and representative of our rainbow nation.”

In addition to this, wine tourism in South Africa is projected to have further bolstered growth, adding to the overall sustainability of particularly the small and medium sized entities.
In an upcoming report following a wine tourism impact study (due for release on 1 February 2024), preliminary figures have shown exponential growth in numbers and turnover at cellar doors, with full recovery following the Covid pandemic. This growth can be accounted for by both local and international visitors to the Cape winelands.

South African white wine continues to win the popularity contest with Sauvignon Blanc leading the charge, followed by Chenin Blanc and Chardonnay. All three cultivars also showing solid value growth. On the red wine side of things, Shiraz takes the lead, closely followed by Pinotage and Cabernet Sauvignon.

Producers continue to face several localised challenges. One of the main issues is the ongoing infrastructure and equipment challenges at the Port of Cape Town, which has had a major impact on all products and commodities that are heavily reliant on this harbour.

Newly formed wine industry body, South Africa Wine, together with exporters, are continuously engaging with port authorities and have taken a proactive approach in finding ways to support producers in this regard. However, a long-term strategy needs to be implemented to truly negate and ultimately correct these challenges.

“Order fulfilment is key in the international wine business and we cannot allow delays due to a below-standard logistical performance to tarnish our reputation as a reliable supplier of quality wine,” says Christo Conradie, stakeholder engagement, market access and policy manager at South Africa Wine.

“Transnet (Port of Cape Town) is a crucial enabler to ensure we deliver on our global promise and we have the undertaking that Transnet will step up to the mark, focusing on the controllables via a collaborative effort. Notwithstanding some real logistical challenges, we are confident for the future and are committed to honouring all agreements.”

There is no doubt that 2024 will continue to see challenges for the South African, and indeed, the global wine industries as geopolitical pressures will continue to play a major role in the world economy. Despite this, South Africa and the South African wine industry remains open for business and the export of South African wine remains a major focus.

For more information, visit www.wosa.co.za

Wine News: Trade in Wine and Vine Products Continues to Raise

The first edition of the Vine and Wine World Trade Forum was held a few weeks ago in Dijon, France. It has revealed that international trade in wine and vine-related products has grown significantly over the past two decades.

The market has also become more diversified as consumer tastes have changed. While traditional winemaking economies, such as France, Italy and Spain, maintain their dominance in wine exports, “new world” winemakers, such as Australia, Chile and the United States, are also making major inroads. However, the share of China as an importer has declined following a period of growth, possibly due to global disruptions, such as the COVID-19 pandemic.

According to the World Trade Organization, International trade in wine and vine products, have almost tripled over the past two decades. Its value steadily rising from US$ 17.7 billion in 2000 to over US$ 50 billion in 2021 and 2022. Wine accounted for the majority of this trade (76 per cent in 2022), while the remaining 24 per cent consisted of fresh and dried grapes and grape juice.

The “old world” continues to dominate wine exports with France, Italy and Spain holding the top three positions in both value and volume. From the “new world,” Australia, Chile and the United States are the main suppliers in terms of value, although their shares in the international market remain smaller than those of the top three.

On the imports side the primary wine-importing countries include Germany, the United Kingdom and the United States. They are closely matched in terms of volume, but the United States takes a clear lead in value. A surge in China’s wine imports began in 2005 and peaked in 2017, but it has more than halved since then. This decline may be due to short-term disruptions, such as the COVID-19 pandemic, as well as longer-term structural shifts, such as increased domestic production and possible changes in consumer preferences.

For further stats and details: https://www.wto.org/english/blogs_e/data_blog_e/blog_dta_20oct23_e.htm

Source: World Trade Organization

Announcing Liz Palmer is Guest Speaker at the 7th UNWTO Global Conference on Wine Tourism

I’m so thrilled to have been invited as a guest speaker at the upcoming 7th UNWTO Global Conference on Wine Tourism!!

The topics for the 7th Edition include “Inclusive, Sustainable and Digital Wine Tourism: Building Stronger Territorial Cohesion”

This yearly conference has become a leading international forum on trends, tools and opportunities to advance global wine tourism. It also provides opportunities for experts and professionals, as well as consolidated and emerging destinations in this tourism segment to exchange knowledge and experiences.

Since 2016, the Conference has highlighted the importance of wine tourism to the socio-economic development of destinations and has served as a platform to exchange experiences, identify good practices and promote wine tourism as a tool for sustainable development.

The 7th UNWTO Global Conference on Wine Tourism will be held November 22 – 24 in Logroño, Spain. Participants include government officials from international and national tourism administrations and organizations, regional and local authorities, international and national destination marketing organizations, UNWTO affiliate members, private sector representatives, wine estates, infrastructure providers and international academia.

I believe everyone in the wine tourism industry can certainly attest to Massimo Garavaglia, Italian Minister of Tourism, statement at last year’s conference, in Alba Italy: “Wine tourism is much more than just selling wine, which clearly is important.  When you sell a bottle of wine, you are selling the territory behind that bottle, the culture of that territory, the history of the men (and women) who designed these landscapes with the rows of vines.”

I have the extreme privilege of sharing insights on the topic of:

Unlocking the Benefits of Digitalization
Digital transformation can revolutionize and enhance wine tourism experiences, provide data and insights, optimize marketing strategies, and foster sustainable growth.

Conference Link: https://www.unwto.org/7-UNWTO-Global-Conference-Wine-Tourism

Hope to see you there!

Liz Palmer