France to pour away £170m of wine in desperate bid to stem tumbling prices as sales crash
France is giving away £170 million worth of wine in a desperate bid to counter plummeting prices as sales collapse
- The popularity of craft beer and the crisis in the cost of living are attributed
- Despite the dramatic decline in sales, production has continued to increase
The French government is planning to pour away millions of liters of wine – and even uproot vineyards – in an effort to halt falling prices following falling sales.
A surge in the popularity of craft beer, the cost of living crisis and the after-effects of the Covid lockdowns have been blamed for a dramatic drop in sales.
But production has continued to rise, leading to a glut of unsold wine that threatens to depress prices.
Major wine-producing regions, especially France’s famed Bordeaux region, are struggling.
The French government has announced a £170 million plan to buy up huge amounts of the surplus, which will be destroyed.
The French government plans to pour away millions of liters of wine – and even clear vineyards – in a bid to halt falling prices after falling sales
A surge in craft beer popularity, the cost of living crisis and the after-effects of the Covid lockdowns are responsible for a dramatic drop in sales
The alcohol content is recycled to make hand sanitizer, cleaning products or perfume.
French Agriculture Minister Marc Fesneau said the fund was “intended to halt the price collapse and allow winemakers to find sources of income again.”
But he stressed that the industry “needs to look to the future, think about consumer changes… and adapt.”
Much of France’s money – £135 million – comes from the European Union.
Figures from the European Commission show that wine consumption for the current year is estimated to have fallen by 15 percent in France, by seven percent in Italy, by ten percent in Spain and by a whopping 34 percent in Portugal.
However, production in the EU has increased by four percent.
The Commission said the hardest hit areas are those producing red and rosé wines from the regions of France, Spain and Portugal.
The decline in consumption is part of a trend among people who prefer beer and other beverages.
In addition, sales have not recovered after the pandemic closed many restaurants and bars.