EU Commission Convenes Group to Address Wine Industry Challenges

The European Federation of Origin Wines (EFOW), representing the European Union's (EU) wine appellations, has outlined its proposals to ensure a competitive and resilient wine sector. This was during the inaugural meeting of the High-Level Group on Wine Policy, a body convened by the European Commission to assess and secure the long-term sustainability of the wine industry.

Held on September 11, the first of four scheduled meetings gathered representatives from the European Commission, EU member states, and key wine sector stakeholders, including EFOW. The group aims to analyze the current landscape of the wine industry, identify challenges, and propose policies to foster continued growth and development. The session allowed industry organizations to present their perspectives and outline strategies for securing the future of European wine production.

Wine designations of origin, particularly those protected under PDO (Protected Designation of Origin) and PGI (Protected Geographical Indication), are cornerstones of EU viticulture, representing roughly 80% of the Union's vineyard area. These wines play a crucial socio-economic role, especially in rural regions where viticulture is often the only viable agricultural activity. However, the sector faces significant challenges that threaten its future stability and growth.

Key Challenges Facing the Wine Sector

• Declining Wine Consumption: Over the past decade, wine consumption in Europe has steadily decreased. Forecasts from the European Commission suggest that this downward trend will continue, as wine becomes more of an occasional indulgence than a staple. Compounding this issue, several EU countries have adopted stringent public health policies targeting alcohol consumption, including moderate wine consumption.
• Shifting Market Dynamics: The market has seen a notable drop in demand for red wine and mid-range still wines. This decline is exacerbated by fierce competition from other alcoholic beverages, whose sales have remained stable or even grown. Changing consumer preferences, influenced by health trends and younger generations' interest in alternative drinks, are reshaping the market.
• Market Disruptions: Efforts to develop low- or no-alcohol wines have met with mixed results. Export markets, once seen as a solution to falling domestic sales, are also stalling due to geopolitical tensions. The risk of trade conflicts, especially in key markets like the U.S. and China, adds further uncertainty.
• Climate Challenges: Climate change is severely impacting the wine industry. Extreme weather events—such as heavy rainfall, prolonged droughts, and temperature fluctuations—are causing unpredictable yields and significant production instability. This issue is compounded by the fact that wine production is highly sensitive to even minor changes in climate, meaning vineyards must quickly adapt to new growing conditions.

Riccardo Ricci Curbastro, president of EFOW, emphasized the importance of this new dialogue facilitated by the European Commission. He stated, "EFOW welcomes the initiative of the High-Level Group, as it creates a platform for discussing the future of the wine sector. It is crucial, particularly in this new legislative cycle, to promote an atmosphere of constructive dialogue and avoid the polarization that has previously dominated debates in the wine industry."

Five Key Proposals for a Resilient Wine Sector

During the meeting, EFOW presented a strategic framework focused on five critical areas to ensure the long-term success of the wine industry:

1. Targeted Market Support: EFOW advocates for specific market interventions to assist wine producers facing difficulties. These measures should include a level of conditionality to ensure responsible application by industry operators. Supporting those impacted by market challenges is vital to maintaining competitiveness.
2. Vineyard Management Flexibility: The federation called for reinforcing and streamlining the current system of vineyard planting authorizations. This flexibility would enable better management of viticulture potential and ensure sustainable growth within the sector, aligned with market demand.
3. Enhanced Promotion and Market Diversification: EFOW highlighted the need to improve promotional tools, particularly regarding access, implementation, and accountability for beneficiaries, such as wineries, cooperatives, and regulatory councils. Strengthening these tools within the EU's Common Agricultural Policy (CAP) would help the wine sector respond to evolving market conditions. Additionally, increased efforts in market diversification could open new commercial opportunities and boost competitiveness, especially through an ambitious EU trade strategy.
4. Promotion of Sustainability: EFOW advocates for encouraging, rather than mandating, the adoption of sustainable practices. The focus should be on environmental protection and social responsibility. Supporting sustainability is not only a moral imperative but also a practical necessity to adapt to environmental challenges while safeguarding the industry's long-term viability.
5. Strict Labeling Standards: Ensuring accurate labeling is vital to maintaining consumer trust and promoting transparency. Clear information about the origin, production methods, and contents of wines can help consumers make informed choices, while also protecting the integrity of PDO and PGI wines.

Ricci Curbastro concluded with a strong message: "EFOW's goal is to promote a responsible economic model that aligns production with market demands, ensuring that wines protected by their origin continue to thrive and fairly remunerate producers. The EU wine sector is at a crossroads, and strong, decisive support from European institutions is essential to securing its future, as well as the prosperity of the rural regions and communities that rely on viticulture."

As the High-Level Group on Wine Policy continues its work, the fate of the European wine sector will depend on the strategies developed in these discussions. With consumption trends shifting, markets becoming more volatile, and climate challenges intensifying, the future of European wines—especially those protected by PDO and PGI designations—hinges on proactive, well-coordinated policy measures. The collaboration between EU institutions, member states, and industry leaders like EFOW will be crucial in crafting a sustainable and competitive path forward.

The European wine industry, emblematic of the continent's cultural and agricultural heritage, faces both significant challenges and unique opportunities. Its ability to adapt will determine whether the tradition of European wines can endure in a rapidly changing world.