France is set to allocate €200 million to address a surplus of wine caused by declining demand among French consumers and reduced sales in China. The French agriculture ministry, with EU financial support, will provide crisis distillation aid to assist winemakers, particularly in Bordeaux and Languedoc regions. This aid involves distilling surplus wine into ethanol for industrial purposes, such as perfume or hydroalcoholic gel production.
The initiative is part of a broader strategy by the government to help the struggling wine industry adapt to changing consumption patterns, export market competition, and decreased sales in China. Agriculture minister Marc Fesneau emphasized the importance of halting price collapse and helping winemakers find new revenue sources. He called for farmers to adjust production according to future demand and consumption changes.
The wine industry anticipated a surplus of up to 3 million hectolitres this year, equivalent to 7% of last year’s production. The sector had advocated for €240 million in crisis distillation aid. Additionally, a compensation scheme rewards farmers for converting vineyards to woodlands or leaving them fallow. Around 1,000 Bordeaux farmers have sought aid to remove 9,200 hectares of vines, accounting for 8% of the total growing area in the region.
While French wine consumption declined 32% over the past decade, demand for premium wines and champagne has remained more resilient. Producers have adjusted to changing trends, with some focusing on upmarket offerings and the popularity of rose wines. The wine and spirits sector continues to be a significant contributor to French exports, reaching €17.2 billion last year, a 10% increase from the previous year.
The measures are introduced as the country’s grape harvesting season, known as the vendange, commences. The timing of the vendange has been shifting due to rising temperatures attributed to climate change.
