French authorities plan to reallocate 200 million euros to support winemakers facing weakened demand for wine. The Finance Times reports that the French Ministry of Agriculture has secured EU backing to run a program that converts surplus wine into ethanol, which can then be marketed for industrial uses such as perfume production. The coverage notes that a large portion of the aid is likely to flow toward the Bordeaux and Languedoc wine regions.
Before this aid is disbursed, Bordeaux wine producers would need to be compensated by the government for the surplus stock that remains unsold. Winery owners have pointed to a slump in demand and falling prices as the main reasons behind the oversupply, driven by long-standing overproduction and shifts in what consumers want.
Historical trends in French wine consumption show a marked decline over several decades, especially for red varieties. A study published last November indicated that red wine intake has dropped by about 32 percent in the last ten years, with younger adults aged 18 to 35 being the group most likely to reduce or stop drinking wine altogether. The situation has coincided with rising beer imports in neighboring markets like Russia, which adds another layer to the price and demand pressures facing winemakers.
The broader context for this policy shift includes considerations of rural economic stability, EU agricultural policy, and the evolving tastes of a changing consumer base. Stakeholders in the wine sector are watching to see how much of the envisaged 200 million euros will reach producers in the Bordeaux and Languedoc areas, and how the conversion of surplus wine to ethanol might influence both farm incomes and industrial supply chains in the near term. The plan also highlights the tension between maintaining traditional wine industries and adapting to market realities and regulatory frameworks that shape European agricultural support programs. (Finance Times)