The world wine production contracted with 6.9% in 2007 to 267 million hl according to estimates from the OIV. This is a substantial drop since the peak year 2004 (300 Mhl) and on the level of 2003 and 2001. This led to a substantial decrease of the production surplus: in 2007 production exceeded consumption with “only” 26 Mhl. According to Federico Castellucci, Director General of the OIV, this means that there is a shortage of low grade wine for industrial use (industrial distillation).