The article analyses the literature on sustainable innovation in wine industry, applying the systematic review approach. The recent review provides answer to the questions: What kind of innovations wineries implement in order to operate sustainably? What are the driving forces of these innovations and how do these effect company performance? We find that the majority of the innovations are process or product oriented focusing on the cultivation and winemaking process or on the product itself. The key motivation factors of innovations are managers’/owners’ commitment, consumer needs and export orientation, networking. Costs of investments, lack of information and knowledge, negative managers’/owners’ attitude, inadequate regulations, profit pressure from shareholders, uncertainty are the main barriers of innovations. Sustainable innovations effect positively companies’ performance. Economic performance is measured by competitiveness, new markets, volume of export, costumers’ loyalty, operational risk, strong brand and eco-efficiency. Environmental performance is measured by lower environmental impact, better product and company image, higher level of reputation. The review of innovation and performance interaction may allow drawing policy implications for future actions.