Pinot Au Revoir…. The French government is paying farmers about $215M to destroy this season’s surplus wine — enough vino to fill 100 Olympic-size pools. The wine won't just be dumped, though: it’ll be distilled into ethanol that can be used in cleaning supplies and perfumes. Separately, France is paying farmers to destroy their vineyards to avoid a future glut. Through the program, Bordeaux farmers have applied to rip out 8% of the region’s vines.
Getting crushed. Contributing to this year’s surplus: increased global wine competition and a sales dip in China. But the industry’s also prepping for a longer-term trend: people drinking less alcohol.
Sober-curious generation… The French sipped 32% less red wine last year than they did a decade ago, and the drinking decline’s steeper among the country’s youth. While some of their drinking preferences have shifted to beer and spirits, many are simply drinking less. That’s true in the US too: 62% of those aged 18 to 34 said they drink alcohol in a recent Gallup poll, down from 72% two decades ago. Young people have also cut back on how much they drink.
Hangover-free: Non-alcoholic beverage sales (including n.a. wine) grew 21% last year, and mocktails like non-boozy botanical spritzes are being added to trendy menus.
Treat yourself: When people do imbibe, they may be opting for more premium wines and Champagne — which have seen demand jump — as well as rosé.
Adapt or shrivel up… Wine and spirits are among France’s top exports, and the government’s hoping this short-term pruning will prep the market to flourish. The cash incentive to dump wine is intended to keep prices from crashing while winemakers seek new revenue sources — like growing olives. French Agriculture Minister Marc Fesneau said farmers need to “adapt to changes in consumption and adjust production to the demand of tomorrow.”