France’s government, led by President Emmanuel Macron, has set aside 200 million euros (roughly $216 million) to help with the disposal of excess wine within the country.
The massive financial investment is intended to help struggling producers experiencing decreased demand.
Why is there so much wine in France?
This is because the cost of manufacturing the wine has exceeded its current selling price, causing wineries to lose money on every bottle sold.
Because of a combination of rising living costs, decreasing demand post-Covid, and a hot European summer, this dilemma has been especially acute in the Bordeaux region.
In response to this issue, the French government is making it easier to destroy excess wine, with the option of repurposing the alcohol for things such as perfume or cleaning supplies.
According to French Agriculture Minister Marc Fesneau, the effort aims to avert price crashes and revitalize cash streams for wineries.
Fesneau reportedly said that the initiative is “aimed at stopping prices from collapsing so that winemakers can find sources of revenue again.”
Winemakers, according to Fesneau, should plan for a sustainable future and change their operations accordingly.
French wine and spirits were the country’s standout exports in 2022
In order to solve the problem in Bordeaux, the agriculture ministry announced in June a 57-million-euro fund to facilitate the evacuation of approximately 9,500 hectares of vines in the region.
Producers are encouraged to diversify their crops, including olives. The EU initially allotted 160 million euros for the wine disposal operation, which the French government supplemented to bring the total to 200 million euros.
Despite continued issues, French wine and spirits were the country’s standout exports in 2022.
The Federation of French Wine and Spirits Exporters reported a record-breaking 17.2 billion euros in French wine and spirits exports, a 10.8 percent rise over 2021.