France spending €200m to destroy wine

[ha_banos]

Certainly few wine folk here. Surplus wine or real drop in consumption? This is likely to be the cheaper bulk end of the market. Consumers turning to beer, spirits. More global production? French wine no so good? Growers encouraged to switch to olive growers.

Those old enough to remember the previous EU wine lake? Just a cycle?

https://www.theguardian.com/world/2023/aug/25/france-fund-destroying-excess-wine-demand-falls

https://www.bbc.co.uk/news/world-europe-66623636

 

 

[Fireball]

I wonder if it is similar to cigars or any luxury goods in some ways. Sure, Asian markets have lifted demand for cigars, but I suspect that without that help, demand would be much lower.

Higher Inflation and cost of living have really had an impact on a majority of people. The ultra wealthy will always buy luxury goods - but most people will end up ‘tightening the belt’ and limit what they buy to cut costs where they can.

Easiest item to cut costs on are luxury goods. Doesn’t mean people don’t drink wine - just less expensive wine. It’s why Nudies are the right idea at then right time.

[MrBirdman]

The French drink a lot of wine, rich and poor alike, so they have always made a lot of table wine, i.e. cheap stuff you’ll never see exported. This goes for every region I know of, including the prestigious ones like Bordeaux; most wine made in champagne is, frankly, crap. The vast majority is consumed domestically. The wines being destroyed aren’t top end.

Given how important viticulture is to France’s agrarian economy, it’s not that surprising. Governments often pay farmers to not grow crops as a form of price control. I wouldn’t be surprised if there are strong feelings about this in France, of course, but the concept isn’t that strange.

Spirits are growing in popularity in many countries, as is not drinking at all (particularly with the competition from cannabis).