France unlocks 40 million euros to distill surplus wine

France has unlocked 40 million euros in emergency aid to pay for the distillation of surplus red and rosé wines, a move aimed at easing pressure on a market weighed down by high inventories and weak demand. The measure, announced by FranceAgriMer, comes from the European Union’s crisis reserve and is meant to pull excess volumes out of commercial channels and send them to industrial or energy uses.

The program opens as French wine producers continue to face a difficult balance between production and sales. Under the scheme, wine holders will receive 30 euros per hectoliter delivered for distillation, while distillers will receive 3 euros per hectoliter. Each producer must commit at least 30 hectoliters to qualify. Applications are open from April 20 through May 12 on the dedicated FranceAgriMer platform.

Officials have turned back to emergency tools after several years of strain in the sector. In previous crisis-distillation programs in 2023 and 2024, millions of hectoliters were removed from the market. In 2023 alone, about 3 million hectoliters were distilled in France with public support estimated at more than 150 million euros, underscoring how large the imbalance had become.

The latest intervention reflects a broader decline in wine consumption in France. Agreste data show that per-capita consumption has fallen from about 120 liters a year in the 1960s to less than 40 liters today, with younger consumers drinking less than older generations did. Export markets have also offered less relief. France remains one of the world’s top wine exporters by value, at roughly 11 billion to 12 billion euros a year, but volumes have been flat or lower. In 2023, French wine exports fell about 5% by volume, according to customs data, as inflation, slower global growth and stronger competition from Spain, Italy and other producers weighed on sales.

The pressure is especially acute in some regions, including Bordeaux, where growers have faced oversupply, falling sales and changing consumer tastes. The government and the European Union have already backed an arrachage plan to remove thousands of hectares of vines as part of a longer-term restructuring effort. The distillation aid is intended as a short-term release valve, helping wineries clear storage space and limit further price declines while the sector searches for a more durable adjustment.