In order to help struggling growers and stabilize prices, the French government has set aside €200 million euros ($216 million) to pay the destruction of surplus wine.
Several major wine-producing regions in France, particularly the celebrated Bordeaux area, are failing due to a confluence of issues stemming from changing consumer trends, the cost-of-living crisis, and the COVID-19 pandemic.
According to the local farmers’ association, a reduction in wine demand has resulted in overproduction, declining prices, and serious financial difficulties for up to one in every three winemakers in the Bordeaux region.
The French government has increased a €160 million European Union budget for wine degradation to €200 million, Agriculture Minister Marc Fesneau said at a press conference on Friday.
The funds are “intended to prevent prices from collapsing and to allow winemakers to find new sources of revenue,” but he added that the business must “look to the future, consider consumer changes, and adapt.”
