The wine industry toasts the advances of digital transformation

The wine industry has growth potential in the adoption of digital technologies. IoT sensors, artificial intelligence and blockchain are used to improve production, traceability and efficiency. Digitalization helps predict the weather, optimize harvesting, monitor soil quality, and streamline processes. The challenge is to include SMEs in this process to maintain the competitiveness and quality of the wine.

They say that good wines improve with time. Likewise, the benefits of new technologies increase with experience. The wine industry still exhibits low levels of maturity in terms of digital transformation: according to a survey carried out in 2021 by the International Organization of Vine and Wine (OIV), the same companies in the sector consider themselves to be at a medium stage in comparison with other segments such as coffee or oil. This means the high potential for growth and adoption of innovation to generate disruptions in the business.

IoT sensors, for example, are beginning to multiply their presence to provide real-time information about the state of the soil, the temperature in warehouses or the situation of different transport vehicles. It is even expected that soon the bottle itself will be a source of information and can emit data about where it is, what the humidity and temperature conditions are like or who its last buyer was. At the same time, it will include a QR code and augmented reality elements so that consumers can learn about the characteristics of the vineyard or discover what the production process was like step by step. In the OIV survey, this appears as the wineries' first priority.

Towards a learning model with artificial intelligence

AI, for its part, allows us to use climate predictions, forecast demand and promote corresponding production, monitor and manage crops to maximize their yield or even evaluate the quality of a soil. Part of the input information used by AI is satellite images, geolocation data and drone images, which allows you to easily collect data on water scarcity, disease pressure or maturity in the vineyard and take preventive or corrective actions practically in real time. All of these are alternatives that large companies in the sector have been using for a long time, which is why the OIV study maintains that the time has come for smaller organizations to start adopting them.

In addition, an increase in the use of robots dedicated to fertilization, harvesting, inventory control or movements in the warehouse is expected. Meanwhile, remote imaging LiDAR technology is useful for mapping the structure of a vineyard in 3D and designing, with the help of automation, processes that speed up movements or serve to prevent accidents.

 Digitization in every sense

Another of the key technologies that is already marking innovation is blockchain- These tamper-proof and unalterable records used in multi-party transactions enable a new era of traceability and transparency for all types of operations. Among other benefits, they allow production and distribution steps to be followed from end to end, guarantee the quality of raw materials and help reduce fraud and counterfeiting. In this sense, electronic certificates also stand out, to eliminate paper and digitize all tax and tariff documentation related to exports. To cite an example, under this technology there are already sales of top premium wines.

One of the great challenges in digitalization in the wine industry is to ensure that SMEs are not left out of the phenomenon and can remain competitive, innovative and productive: in Argentina alone, according to data from the Ministry of Economy, this segment is responsible for 37% of exports related to the world of grapes and wine.

All these technological advances point in the same direction: more efficiency in business processes, greater vineyard performance, more product traceability, more efficient use of resources (which results in greater sustainability) and, of course, better quality of wine. Therefore, to the advances in digital transformation of the wine industry we say... Cheers!

Manuel Allegue – October 28, 2022

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