France, EU to spend US$200 million on destroying excess ‘wine lake’
- Several major wine-producing regions in France are struggling amid problems such as the cost-of-living crisis, Covid fallout and changes in consumer habits
- Alcohol from destroyed wine can be sold for use in non-food products such as hand sanitiser, cleaning products or perfume, but there’s still an excess
The French government announced on Friday that US$216 million would be set aside to fund the destruction of surplus wine production in a bid to support struggling producers and shore up prices.
Several major wine-producing regions in France, particularly the famed Bordeaux area, are struggling because of a cocktail of problems from changes in consumption habits, the cost-of-living crisis and the after-effects of Covid-19.
A fall in demand for wine has led to overproduction, a sharp fall in prices, and major financial difficulties for up to one in three winemakers in the Bordeaux region, according to the local farmers’ association.
An initial European Union fund of US$173 million for wine destruction has been topped up to US$216 million by the French government, Agriculture Minister Marc Fesneau told reporters at a press conference on Friday.
The money was “aimed at stopping prices collapsing and so that winemakers can find sources of revenue again”, but he stressed that the industry needed to “look to the future, think about consumer changes … and adapt”.
The southwest Languedoc region, the country’s largest wine area known for its full-bodied reds, has also been hit hard by the fall in wine demand.