Climate Change Brewing Storm in Alcohol Industry

Climate change and alcohol Industry

Decode how climate change is causing a threat to alcohol manufacturers and how they are tackling it.

Have you ever considered climate change directly impacting your everyday experiences? We often envision its effects in the distant future, affecting future generations.

But let us bring you back to reality. Take a sip from that newly opened wine bottle, and if you notice a change in taste, climate change is to blame.

We are saying this because winemaking is an art that demands meticulous attention to detail. Nature is everything to them. A slight change in the weather can make or break things for wine and alcohol makers. 

Behind the scenes, companies work tirelessly to cultivate perfect crops for your beloved drinks. Climate patterns, water availability, nutrient-rich soil, and precisely timed harvests are crucial in crafting your favourite beverage.

What’s Happening?

The India Meteorological Department (IMD) has recently predicted the emergence of El Niño during the southwest monsoon in April 2023. 

But what exactly is El Niño? Well, it signifies the expansion of warmer water, reaching closer to the ocean’s surface. This leads to a surge of heat into the atmosphere, resulting in hotter and moister air. However, this rising temperature and extreme weather conditions are casting a powerful impact on alcohol manufacturing companies in India. 

Take, for instance, the unfortunate episode that unfolded in 2019 due to untimely rainfall, which led to problems for Sula Vineyard’s winery in Nashik, Maharashtra. 

The harvest for that season was stunted by approximately 20%, dealing a blow to their business. This is just one example of how rising temperatures, altered soil moisture, and water scarcity threaten these companies’ finished products.

In addition to this, the Economic Times highlights that the recent report by the Intergovernmental Panel on Climate Change has warned of a more erratic Indian monsoon.

Now, this bad climate would impact crops, which are the key ingredients on which the liquor industry runs. For example, barley is used to make beer, grapes for wine, and grain mash for whisky and rum; all of these are victims of heatwaves, floods, droughts, and shifts in rainfall patterns.

What are Companies Doing to Cope Up With Climate Change?

The Economic Times report reveals that alcohol and wine manufacturing companies are taking action to cope with climate change. 

The leading alcohol manufacturing company, United Spirits, had mentioned that water stress is a major challenge for them. So, they came up with a system to extract water from the air. With this revolutionary step, they can produce their malt whisky in the warm and arid Alwar region of Rajasthan. 

In a similar vein, Radico Khaitan Limited, one of India’s oldest and largest Indian Made Foreign Liquor (IMFL) manufacturers, is also exploring a water-from-air project.

Turning our attention to Sula Vineyards’ winery in Nashik after the unfortunate rainfall incident in 2019. They have strategically restructured their processes to ensure the harvest season commences later than usual. This adjustment has become necessary due to the increasing occurrence of late monsoons.

By carefully timing the harvest season, Sula Vineyard aims to mitigate or minimise the adverse impacts caused by these delayed monsoons. 

What’s Next?

Amidst the changing climate, the world of alcohol manufacturing is witnessing a wave of innovative solutions. These companies recognise climate change’s challenges and actively invest in research and development. 

Yes, the challenges are tons and are set to increase with time. But alcohol companies are bracing it so that you enjoy your glass of drink!

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

*The article is for information only. This is not investment advice.


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