The not inconsiderable sum of 200 million euros will be allocated by the French government for the destruction of surplus wine and the support of producers.
The decision comes amid a cocktail of problems facing the French wine industry, including falling demand for wine as more people prefer to drink craft beer. Overproduction and a cost-of-living crisis are also hitting the industry.
Most of the €200 million will be used to buy excess stock, with the alcohol sold for use in items such as hand sanitisers, cleaning products and perfumes.
In an effort to curb overproduction, money will also be made available to winegrowers to switch to other products, such as olives.
By pumping money into the industry, the French government aims to stop the collapse in prices… so that wine producers can find sources of income again.
Despite the financial help – an initial EU fund of €160m which the French government increased to €200m – the wine industry must look to the future, think about consumer changes and adapt.
European Commission figures for the first half of the year show that wine consumption fell by 7% in Italy, 10% in Spain, 15% in France, 22% in Germany and 34% in Portugal, while wine production across the European Union – the largest wine producing region in the world – increased by 4%.
A stable leader in wine consumption since 2011 is the United States, which has returned to the pre-pandemic level. The consumption of traditional still wines remains stagnant, while appeal is growing for fresh white wines, sparkling wines, rosés or cocktails in personalized packages.
Even larger than the Canadian market, the American wine market is also distinguished by the diversity and distinctive characteristics of the 50 states that make it up. Each of these should be considered as a market in itself.
