Why Is Wine Leftover... France Spending Billions in Budget to Dispose

Decline in Wine Consumption Due to Popularity of Craft Beer in Europe
Government Plans to Collect Wine for Hand Sanitizer Production

France, once a 'wine powerhouse,' is reportedly struggling with the disposal of surplus wine that is not selling.

On the 26th, the British BBC reported that the French government has allocated a budget of 200 million euros (approximately 286.4 billion KRW) to discard excess wine stock and support affected wine producers.

Most of the 200 million euros will be used to purchase the overflowing inventory, and the collected wine will undergo a separate process to be used in the production of hand sanitizers, cleaning products, and perfumes.

Additionally, the government plans to set aside a separate budget to support grape farmers who switch to other crops such as olives to prevent overproduction of grapes.

According to a recent report released by the International Organisation of Vine and Wine (OIV), headquartered in Paris, France was the world's second-largest wine producer last year, following Italy.

The combined wine production shares of Italy (19.3%), France (17.65%), and Spain (13.82%) account for 50.77% of the world's total wine production.

Not only in production but also in consumption, France ranked second worldwide last year with 24 million hL consumed, following the United States, which consumed 34 million hL.

However, according to the BBC, wine consumption in France decreased by as much as 15% from the previous year through June of this year. The decline in wine consumption is not limited to France but is also observed in major European wine-consuming countries, including Germany (22%), Spain (10%), and Italy (7%). Portugal saw a 34% decrease. In contrast, the overall wine production in the EU increased by 4%.

This trend is mainly attributed to the rising popularity of craft beer over wine in Europe. Especially among the younger generation, craft beer is preferred over wine. A recent French broadcast even predicted that "this year, beer sales in French supermarkets might surpass wine sales for the first time."

Marc Fesneau, Minister of Agriculture, stated, "The government will prevent price collapse so that wine producers can find new sources of income."

However, Minister Fesneau added, "Despite financial support, the wine industry must look to the future, consider changes in consumer behavior, and adapt."

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