"If You Plow Up a Vineyard, You Get Cash Compensation" What’s Happening in Bordeaux, the City of Wine?

Sharp Decline in Sales Due to Changing Preferences, Heatwaves, and Export Halts
French Government Plans Compensation for Farmers Destroying Vineyards

Thousands of hectares of vineyards in the Bordeaux region of southwestern France, well known for red wine production, are at risk of being uprooted.

[Photo by Pixabay]

According to the American daily Politico and others on the 17th (local time), red wine inventories have been piling up in the Bordeaux region due to a combination of various factors. According to the French Wine Federation, red wine sales in French supermarkets decreased by 15% last year, and the average amount of wine consumed by French people also sharply declined.

The decrease in red wine consumption is largely influenced by the younger generation in France. According to a survey conducted last year by the French media industry RTL, red wine consumption among the 18 to 35 age group in France has decreased by 32% over the past decade. Experts said, "Young people do not drink much wine," and "Other beverages are much more competitive among Millennials and Generation Z."

China, which was Bordeaux's top export destination, also contributed to the decline in red wine consumption by halting wine imports during the COVID-19 pandemic. Although exports have resumed, they have yet to reach pre-pandemic levels.

Climate change, including heatwaves, has also affected consumption. As temperatures rise, consumers increasingly prefer refreshing, lower-temperature drinks such as white and ros? wines over red wines, which have higher alcohol content and more astringency.

For these reasons, 1,371 vineyards in the Bordeaux area are considering stopping grape cultivation and changing the land use for other activities. The French government plans to compensate farmers who uproot vineyards with 6,000 euros (approximately 8.7 million Korean won) per hectare. Additionally, the government has devised a plan to convert surplus red wine stocks into industrial alcohol for use in pharmaceuticals or cosmetics.

Domestic Wine Imports Decline... Demand for Premium Wine Increases

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The Korean wine market is also not in a positive situation. According to customs export-import trade statistics on the 17th, wine imports in the first half of this year amounted to 31,300 tons, a 10.8% decrease compared to the same period last year.

During the pandemic, the 'home drinking' trend increased wine demand, leading major distribution companies to expand their wine business scale. However, after the endemic phase, high inflation trends have caused inventories to accumulate again.

Nevertheless, the wine industry sees a rising demand for premium wines despite the overall decrease in consumption. The increasing prices of wines imported into Korea indicate that many high-priced wines are entering the domestic market. In fact, HiteJinro's premium wine sales in the first half of this year rose by about 30% compared to the previous year.

An official from the distribution industry stated that large corporations are planning to enhance competitiveness by discovering hidden wines and launching premium lines, aiming to expand their global distribution networks.

This content was produced with the assistance of AI translation services.