Bordeaux Bulk Wine Prices Plunge to 1€ per Liter, Falling Below Production Costs

At a recent conference in Bordeaux, the economic and social crisis facing the region’s wine industry was laid bare. Christophe Chateau, communications director for the Bordeaux Wine Council (CIVB), addressed an audience of real estate and wine professionals on November 13 at the InterContinental Bordeaux. He described a market where generic Bordeaux wines are now selling at prices well below their production costs. According to Chateau, the average price for bulk Bordeaux red wine over the past three years has been about 1 euro per liter—cheaper than olive oil and sometimes even less expensive than vinegar.

Chateau explained that this situation is unsustainable for many producers. “When a winemaker sells a barrel of 900 liters for 900 euros, but it costs 1,800 euros to produce, that’s not the right price,” he said. The CIVB reported an average price of 943 euros per barrel for the 2025-2026 season, with prices dropping to 793 euros in October 2025. These figures highlight the financial pressure on Bordeaux’s winegrowers, especially those producing generic wines.

The causes of this crisis are complex. Chateau pointed to two main factors: declining consumption and rising health concerns. Wine is no longer seen as a staple food product in France but rather as a leisure item, making it easier for consumers to cut back during tough economic times. Health campaigns like Dry January and increased anti-alcohol advocacy have also contributed to reduced demand.

Structural challenges have been made worse by recent events. Climate-related production costs have risen, and geopolitical tensions have affected exports. In response, the CIVB has adopted a strategy focused on reducing production and supporting marketing efforts. Over the past four years, Bordeaux has uprooted about 20,000 hectares of vines, aiming to reach 85,000 hectares by 2025. The council is also investing in promotional campaigns that highlight local winemakers and in training programs through its Wine School.

Despite these difficulties, Chateau remains confident in Bordeaux’s reputation. “Bordeaux is a very strong brand,” he said, noting that it remains the most recognized appellation among French consumers. However, he acknowledged that some wine professionals—especially in Paris—are promoting lesser-known regions at Bordeaux’s expense.

The crisis is not limited to Bordeaux. Chateau noted similar problems in other major wine regions around the world, including California’s Napa Valley, where some vineyards are being abandoned because market prices do not cover production costs. He warned that if global consumption continues to fall faster than vineyards are uprooted, the crisis will persist.

Looking ahead, Chateau expressed hope that geopolitical stability and economic recovery could help rebalance supply and demand. He sees potential growth in markets such as Africa, India and South America. However, he stressed that domestic efforts are also crucial. French wine shops and restaurants remain key targets for Bordeaux producers seeking to rebuild their image and reconnect with consumers.

Chateau admitted that past mistakes have contributed to current challenges. In previous years, some Bordeaux producers prioritized exports to China over relationships with local retailers and restaurateurs—a move that alienated important partners at home. “We need to go back and show them that Bordeaux offers some of the best value in the world,” he said.

Arnaud Roux-Oulié, owner of Château Carlmagnus in Fronsac, echoed these concerns about changing business models. He suggested that winemakers may need to take a more active role in sales and marketing as traditional wine merchants become less involved. “If there are no winemakers, there are no merchants,” he said. “But winemakers without merchants can still function.”

Both Chateau and Roux-Oulié agreed that today’s winemakers must adapt to survive. This means embracing new skills such as social media management and wine tourism promotion—areas once considered outside the traditional scope of viticulture.

Chateau also addressed pricing among top-tier wines, noting that even prestigious classified growths may need to lower their prices if they want to find buyers in today’s market.

The situation in Bordeaux reflects broader changes affecting wine regions worldwide: shifting consumer habits, economic uncertainty and evolving expectations for how wine is marketed and sold. For many producers in France’s most famous wine region, adaptation is no longer optional—it is essential for survival.