Retailers accused of paying ‘lip service’ to the green issue

I’ve just attended a debate, which asked whether the promotion of environment credentials is a marketing ploy. The room was half-full at best, which is a sad indication of the importance of the green issue in the UK wine industry. Or perhaps everyone had gone on half-term a day early? Compared to the full-house at the recent low alcohol forum, it was a poor showing – I didn’t spot one major retailer.

It appears many wine producers are going green for the right reasons but retailers were accused of using the green message to suit their own agendas – making a profit. Unfortunately the supermarkets weren’t there to defend themselves, but there were some damning comments.

Michael Cox, UK director for Wines of Chile, which is one of the main producing countries leading the sustainability drive along with South Africa and New Zealand, said, “Most multiple retailers will pay lip service to green initiatives.”

The main problem is consumers see wine as a natural product and that means the word sustainable or organic on a wine label has less meaning than organic on a bunch of carrots. It goes some way to explaining why sales of organic wine have not kept pace with the rest of the organic industry. Cox added, “Having a social conscience does not appear to sell more bottles. The consumer is not prepared to pay a premium for organic wine because they don’t understand the concept. ”

Retailers are clearly doing things to help the environment such as the plastic bag reuse scheme but a cynic would argue it is only because the authorities have ruled they must reduce their plastic bag use. Angela Mount implied retailers didn’t give a damn about saving the environment – it is all about saving money. If the changes didn’t save money, then they wouldn’t do them. She argued bulk shipping and lightweight bottles improved margins for retailers, adding “I don’t believe the green issue is driven by the consumer. It is often a convenient ploy to reduce costs.”

Peter Darbyshire, MD of UK importer and distributor PLB agreed, “The green solution is to move the point of packaging as close to the point of sale. It is moving to the UK but sadly driven by retailers’ price motivation rather than the green agenda.”