Climate change is threatening the world’s wine supply.
In October 2017, the International Organisation of Vine and Wine (OIV) announced that global wine production would fall by roughly 3 billion bottles in 2017, a decrease of over 8 percent from 2016 and the lowest level since 1961 . The losses were driven by extreme weather events in Italy, France, and Spain .
Figure 1. World wine production trends 
Several reports suggest that rising temperature around the globe could imperil major winemaking regions in the coming decades . A study predicted that by 2050, many regions in Europe, including much of Italy and Southern France, could become unsuitable for wine grapes [2, 4]. The study also suggested that production in California could fall by 70 percent by 2050 [2, 4].
Jackson Family Wines
Best known for its signature brand, Kendall-Jackson, Jackson Family Wines is one of the largest family-owned winemakers in the United States. Since the first vintage of Kendall-Jackson in 1982, it has become a premium collection of wineries sourced from vineyards across California, Oregon, Italy, France, Australia, Chile, and South Africa .
What Climate change means for Jackson Family Wines
For Jackson Family Wines, climate changes pose new challenges:
- Wine grapes are vulnerable to hotter, drier, and more extreme weather . With climate change affecting nearly all the regions where they grow, the yield of grape will decrease.
- Pressure on sourcing water increases. Producing quality grapes requires water, as with any food production . As global warming creates drought and decreases rainfall, water shortage threatens the viability of growing grapes.
- Pest pressure is also increasing. As grapes ripen earlier in warmer climate, swallows and crows eat grapes before the harvest. Mice, voles, and gophers will also threaten vineyards during warmer winters .
- Managing supply chain is complex. As Jackson Family Wines owns vineyards in multiple regions and is expanding to new regions with climate better suited for wine gapes, manufacturing, transportation, warehousing, storage, wholesale, and retail trade become increasingly more complicated .
- Future of existing vineyards is ambiguous. Will good grapes grow in their existing vineyards in 10 years?
How Jackson Family Wines is responding to climate change
Jackson Family Wines is using both high-tech and old-school techniques to combat climate change:
- Improve energy efficiency. The company placed solar-powered weather station to be more energy efficient and lower fossil-fuel consumption — one of the biggest drivers of climate change. For example, if the sensors find the weather too cold at night, new wind machines will automatically start circulating warm air to protect the vines .
- Source water environmental-friendly and use water more wisely. They are capturing rainfall by placing over 100 human-made reservoirs – some of which cost $1.5 million to build – scattered throughout their vineyards . They have also put a price on water of three cents per gallon so that saving can be measured . Workers have devised a system to recycle the water used to wash barrels .
- Pest control without pesticides. To go after pests, they placed boxes for owls and falcons to occupy during the harvest. The owls and falcons scare away other animals with a taste for grapes .
- Utilize data-driven farming. They have been analyzing their crops by installing devices that measure how much sap is in the vines. They transmit the data over cellular networks to calculate how much water specific areas of vineyards need. They monitor their crops using drones equipped with sensors that detect moisture by evaluating the colors of vegetation to identify nutritional deficiencies in the crops, or irrigation leaks [2, 9].
- Consolidation of distribution facilities. They are building a large distribution center near their vineyards, instead of having many small distribution centers in the same region . They are minimizing inventory movement by putting enough product on the floor to satisfy orders for just-in-time delivery . They have collaborating with carriers to keep a certain number of containers on Jackson Family Wines’ property to solve for transportation and storage capacity issues .
Is Jackson Family doing enough?
Some of these initiatives have made Jackson Family Wines better prepared to combat challenges posed by climate change. However, are their effort enough to offset rapid and strong impact of climate change?
To prevent further climate change, it may be more beneficial for Jackson Family Wines to partner with other wineries, other agribusinesses, and government agencies. As climate change not only depends on your action but those of others, it can be even more effective to share knowledge and technology with others to collectively fight climate change.
However, would it be wise to share the company’s knowledge, experience, and expertise with potential competitors? Also, how can a business cooperate and persuade other businesses and government to collectively do what may be the best for everyone in the long run?
[Picture] Maclean, Dave. Global warming is now threatening wine production in the mediterranean. (2017, July 12). Retrieved from http://www.independent.co.uk/life-style/food-and-drink/global-warming-wine-production-mediterranean-europe-continent-italy-spain-greece-a7836766.html.
 Dewey, Caitlin. World wine production just hit a 56-year low. That’s not even the worst part. (2017, October 27). Washington Post. Retrieved from https://www.washingtonpost.com/news/wonk/wp/2017/10/27/world-wine-production-just-hit-a-56-year-low-thats-not-even-the-worst-part/?utm_term=.fc9e0d020cff.
 Gelles, David. Falcons, Drones, Date: A winery battles climate change. (2017, January 5). The New York Times. Retrieved from https://nyti.ms/2j7i4pJ.
 2017 Global Economic Vitiviniculture Data. (2017, October 24). International Organisation of Vine and Wine. Retrieved from https://digital.hbs.edu/platform-rctom/submission/the-uberization-of-uber-rebounding-from-a-terrible-no-good-very-bad-year/?section=7754&sort=rand.
 Shepard, Anderson; Tabor, Gary; Marquet, Pablo; Ikegami, Maki; Hijmans, Robert. Study: Climate Change Will Put the Squeeze on World’s Wineries & Wilderness. (2013, April 8). Conservation International. Retrieved from https://www.conservation.org/NewsRoom/pressreleases/Pages/Study-Climate-Change-Will-Put-the-Squeeze-on-World%E2%80%99s-Wineries–Wilderness.aspx.
 Family. Jackson Family Wines. Retrieved from http://www.jacksonfamilywines.com/en/our-family.
 Hertsgaard, Mark. What climate change means for wine industry. (2010, April 26). Wired. Retrieved from https://www.wired.com/2010/04/climate-desk-wine-industry/.
 Mac Donald, Mitch. Shipping no wine before its time: interview with Kathryn Zepaltas. (2007, May 1) DC Velocity. Retrieved from http://www.dcvelocity.com/articles/20070501thoughtleaders/.
 Boynton, Jen. Kendall Jackson goes for sustainability gold. (2015, July 1). TriplePundit. Retrieved from https://www.triplepundit.com/2015/07/kendall-jackson-goes-sustainability-gold/.
 2016 Jackson Family Responsibility Report. (2016). Jackson Family Wines.