France Bets on Affordability

At the recent wine fair organized by Coopérative U, Domaine Coudoulet from Hérault made its first appearance. The estate’s IGP Pays d’OC Syrah d’altitude received special recognition, earning a “Coup de cœur” distinction. The wine is listed at €4.95 per bottle, tax included. Domaine Coudoulet exports 90 percent of its production, mainly to Europe, but also to Asia, Canada, and the United States. By participating in the wine fair, the estate aims to diversify its sales and increase its presence in the French market.

Fanely Ournac, co-manager of Domaine Coudoulet, explained that selling at lower prices can be profitable under certain conditions. She emphasized that the price offered to large retailers is not lower than what is charged for export markets. One advantage of working with large distribution chains is prompt payment after bottling, which is not always guaranteed with export clients. Ournac described the mass retail sector as demanding but reliable.

She noted that affordable wines remain central to the French market. While Domaine Coudoulet also produces premium wines, selling larger volumes at lower prices is necessary for many producers. Ournac stressed that a lower price does not mean lower quality, especially when her name appears on the label.

Claire Vidal, an agricultural consultant with Exco FSO Languedoc, confirmed that selling wine at attractive prices can be sustainable for producers with significant acreage and high yields. She works with large operations that sell their IGP wines between €1.80 and €2.60 before tax and still remain profitable. These producers often adopt a volume-based strategy and sometimes establish their own trading companies to spread out costs related to packaging and sales teams. Even when raw material and energy costs rose sharply in recent years, some were able to increase their prices accordingly.

Vidal also pointed out that bag-in-box (BIB) packaging can help maintain profitability since it is less expensive to produce than bottles. She said that profitability must be considered at the scale of the entire operation. Some product lines may lose money but help absorb fixed costs overall. Producers who focus on entry-level wines are often skilled managers who control production costs and are active in marketing, allowing them to gain market share.

Guillaume Drubaix, wine buyer for Bordeaux, Southwest France, and Loire Valley at Coopérative U, said that price remains a key factor for consumers shopping in supermarkets. He highlighted that value for money is crucial for wines placed on lower shelves and cited an example of a Graves wine sold for less than €10 that consistently performs well in sales figures.

Renaud Guerre-Genton, head of wine purchasing at Coopérative U, explained that during their wine fairs, prices range from €3 to €150 per bottle including tax, with an average between €6 and €8. For Coopérative U, a “low price” means a wine sold for less than €5 including tax. Guerre-Genton stated that a winemaker can make a living selling wine between €2.50 and €4 before tax per bottle if yields are good—a scenario more likely with IGP wines than with AOPs (Appellation d’Origine Protégée). However, he warned that if a bottle retails for just €1.90 including tax, it becomes unsustainable for producers.

Guerre-Genton added that price is not the only criterion for selection at their wine fairs. Coopérative U is currently the only chain whose wine fair sales have grown steadily over the past five years by about three percent annually. He believes this event offers an attractive outlet for winemakers who are also assured of timely payment.

The current trend shows that producing affordable wines can be profitable if managed efficiently and if producers have access to large surfaces and high yields. The French market continues to demand value-driven options while still rewarding quality and reliability from both producers and retailers.