Innovation, Branding and Sustainability: The case of Torres wine
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Torres Wine, established in 1877, boasts a €200 million turnover with wineries in Spain, Chile, and California, emphasizing quality and sustainability in its global brand. The company faces challenges from climate change, leading to earlier grape harvests and a shift in wine production regions, prompting a need for innovation and adaptation. Torres is focused on reducing its carbon footprint, enhancing eco-friendly practices, and investing in renewable energy while maintaining its commitment to social responsibility.
Innovation, Branding and Sustainability: The case of Torres wine
- 2. • Founded in 1877 with wineries around the globe in Spain (6), Chili and California • €200 million turnover, 1200 employees • Global distribution, including India and China • The Torres brand represents the following elements: 1. Spain was a wine country diverse wines 2. Quality and respect for the environment 3. Value for money The CEO, Miquel Torres, summarizes the Torres value proposition as: “Torres a wine you can trust” A family brand that combines longstanding tradition with innovation Torres is a front runner with a focus on marketing The case of Torres wine
- 3. The case of Torres wine Global warming is threatening the wine business in the long term Torres is facing obvious problems • In 2010 grapes are harvested on average 10 days earlier than in 1990 • Wine business is a long term business requiring looking 15 years ahead or more • The map of wine is changing to cooler climates: Denmark and England are emerging as new wine countries • Many farmers are still not facing the global warming challenge
- 4. The case of Torres wine
- 5. Globe-us: a 7 step model towards value creation The case of Torres wine Determine the materiality matrix Find the relevant touch-points Set ambitions and targets Value creation from evolution Value creation from revolution The existing Business Model Canvas Analyze the stakeholder landscape
- 6. 1. How is the current business model constructed? The case of Torres wine
- 7. 2. Overview of relevant stakeholder relationships The case of Torres wine
- 8. The case of Torres wine 3. Determination of material issues • Environmental conscious production • Produce organic wines • Climate change • 4 years aim: 110+ vehicles will be replaced by hybrid vehicles • Renewable energy • Installed permanent photovoltaic panels • Invested €650.000 in a wind park • Environment • Optimizing of water use • Taking care of its own forest • Reduce total CO2 output by 20% for 2020 • Reduce total solid waste generated • Solid waste recycling • Social responsibility • Take care for the well-being of the staff • Foundation work with under-privileged children around the world • Building schools and homes in various countries
- 9. The case of Torres wine Material issues heatmap of the Torres stakeholders 3. Determination of material issues
- 10. The case of Torres wine 4. Research your market on topic & performance
- 11. The case of Torres wine 5. Determine your targets & ambitions • Reducing the CO2 emissions per bottle by 20% compared to those of 2008 • The reuse of wastewater: in 2010 it was 15%. The aim is to increase this percentage to over 40% • Collecting and storing rainwater for subsequent use in the winery • Use of 18% lighter bottles • Developing underground storage for water, electric (bio-gasses) & heat and cold coupling
- 12. The case of Torres wine 6. Define opportunities that create value
- 13. The case of Torres wine 7. Hypothetically redesign your business
- 14. Summary: Value from sustainability in 7 steps The case of Torres wine Determine the materiality matrix Find the relevant touch-points Set ambitions and targets Value creation from evolution Value creation from revolution The existing Business Model Canvas Analyze the stakeholder landscape