PARIS: The French government has decided to destroy surplus wine to support producers as it allocated €200m (£171.6m) for the purpose.
The decision comes amid a host of problems for the industry, including a falling demand for wine as more people drink craft beer. Cost of living crisis and overproduction are also hitting the industry.
Most of the €200m will be used to buy excess stock, with the alcohol sold for use in items such as cleaning products, hand sanitizer and perfume.
In a bid to check overproduction, money will also be available for winegrowers to shift to other products, such as olives.
In funnelling the money into the industry, the French government aims to stop “prices collapsing… so that wine-makers can find sources of revenue again”, Agriculture Minister Marc Fesneau said.
Despite the financial assistance – an initial €160m European Union fund which the French government increased up to €200m – the wine industry needs to “look to the future, think about consumer changes … and adapt”, he added.
European Commission data for the year to June shows that wine consumption has fallen 7% in Italy, 22% in Germany, 10% in Spain, 15% in France and 34% in Portugal, while wine production across what is the world’s biggest wine-making bloc – rose 4%.
