As per a report by BBC, this action comes at a time when the wine industry is facing a combination of challenges, including a decrease in wine demand due to the growing popularity of craft beer. The industry is also grappling with problems related to overproduction and the impacts of the cost of living crisis.

A significant portion of the allocated €200 million will be utilized for the purchase of excessive wine stocks. These surplus alcoholic beverages will then be repurposed for use in various products such as hand sanitizers, cleaning agents, and perfumes.

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With the aim of reducing overproduction, funding will also be accessible for winegrowers to transition to alternative products, such as cultivating 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 help – an initial EU fund of €160m which the French government topped up to €200m – the wine industry needs to “look to the future, think about consumer changes … and adapt”, he added.

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Statistics from the European Commission covering the period up to June reveal a decline in wine consumption: Italy experienced a 7% drop, Spain 10%, France 15%, Germany 22%, and Portugal 34%. In contrast, wine production within the bloc, which holds the title of the largest wine-producing region globally, increased by 4%.

(With insights from BBC)

Updated: 26 Aug 2023, 06:44 AM IST