Like most other industries, the wine industry has not remained immune to the changes in the global market caused by the coronavirus pandemic. In Croatia, a country where tourism accounts for almost 20 percent of GDP, this has consequently affected other industries related to tourism. One of them is the wine industry, which experienced a significant decline since the beginning of the pandemic in 2020. In that year alone, wine sales were halved, causing concern and dissatisfaction among winemakers. Considering that most Croatian winemakers rely on selling wine to hotels and restaurants, and exports have decreased, the pandemic era has brought a series of problems to this sector.
Implementing measures to reduce the spread of the virus has led to empty wine cellars and postponed wine events, reducing sales to the virtual world, which is not sufficient to cover all production costs. The lack of promotion through various events and fairs has also resulted in decreased sales. Besides the financial aspect, in the early stages of the pandemic, the measures restricting movement outside counties posed a challenge for winemakers in obtaining permits to access vineyards outside their place of residence. This slightly slowed down spring work in the vineyards and further encouraged winemakers to join forces for their betterment.
Despite poor results in 2020 and 2021, Croatian winemakers remain optimistic about the recovery of the industry, expecting a full return to pre-pandemic conditions as early as this year. They also anticipate that the wine sector will experience a boom in the next decade, but the key to this success lies in strengthening exports.
The optimism of winemakers is confirmed by the fact that even during the pandemic, some new vineyards emerged. In 2020, the well-known Croatian winemaker Krauthaker expanded its capacity to cultivate Pinot Noir and Graševina varieties. Another success story comes from the Hora winery, which, despite poor forecasts, managed to sell all of its produced wine.
However, this optimism quickly fades when winemakers mention the government measures, which were considered an absolute failure. The offered price of 5 kuna per liter of wine intended for distillation does not even cover production costs, prompting many producers to consider giving it away rather than selling it for such shameful amounts. Family wineries and small production facilities do not benefit from such measures.
However, despite all the problems brought about by the pandemic, it can serve as a lesson for winemakers worldwide for the future. Digitalization and opening up to online sales pose one of the biggest challenges but also opportunities for winemakers worldwide, including those in Croatia. Many Croatian wineries are not familiar with any form of online marketing, thus closing their doors to numerous international buyers and those who simply want to purchase quality wine from the comfort of their homes with just a few clicks. The fact is that winery owners are often older individuals who may not be as familiar with technological advancements, but the younger generation in this industry certainly has the capacity and knowledge to enter new markets. In addition to websites, communicating with potential customers through social media has proven to be an excellent way to showcase and sell wine. Creative design on Instagram profiles can serve as a great medium for presenting the winery and its products, as well as educating the broader audience about wine production. People today like to know details about the products they buy, so any form of interaction via social media helps in enhancing product visibility.
As mentioned earlier, due to social distancing measures, many wine events and festivals were postponed, but this doesn’t have to mean their oblivion. Platforms like Zoom and MS Teams can enable winemakers to host panels, conferences, and even wine tastings in an alternative, virtual way.
In addition to the need for digitalization in wineries, the pandemic has opened up numerous opportunities for creativity and innovation. Many producers have spent their free time developing new ideas to attract guests in the future, and sustainable cultivation and production have begun to gain increasing importance. The pandemic and economic crisis have emphasized the necessity of environmental preservation and ecological production. Countries worldwide have recorded a significant decrease in carbon dioxide emissions, as well as the return of some animal species that hadn’t been seen in years due to human intervention. This has prompted winemakers to question the sustainability of their production because their sales greatly depend on natural trends and climate change.
Changes also took place in the social field, so thanks to the pandemic, winemakers were forced to join together with the aim of achieving collective benefits, which are more favorable measures for producers. It seems that there is good in every evil, and we hope that this year will be successful for winemakers and that the export of Croatian wines will increase.