History always repeats itself. Now it is time for crisis distillation again in Europe. It has been a while since the last time. We remember Languedoc’s overproduction during large parts of the 20th century with subsidies to those who wanted to distil or tear up their vines. But that was a long time ago. For quite a few years, wine supply and demand have been in balance. But now the problems have returned. Three things contribute to today’s large stocks of wine: The pandemic, the large harvest volume in 2022 and inflation, which increases the price of wine and makes people drink less. And people drink quite a bit less.
The European Commission estimates that in 2023 wine consumption will decrease by 7% in Italy, 10% in Spain, 15% in France, 22% in Germany and 34% in Portugal. Significant numbers, in other words. To top it all off, EU wine exports from January to April this year have been 8.5% lower than last year, which has not helped to reduce stocks. China’s reduced consumption is not doing any good either.
Now the new vintage is on its way. 2023. The first bunches of grapes will be picked in just a few weeks. Maybe the volume will not be so big this year. Many regions have been affected by the forces of nature: hail, drought, extreme heat, and severe mildiou in Bordeaux and in some places in Italy. If there is a lower volume this year, it may be a relief for some.
But you cannot rely on the weather to reduce stocks. A crisis distillation, recently approved by the EU, will now attempt to restore the balance. Not only in France but also in other countries. But the EU commission stresses that this is an exceptional measure, nothing the wine industry should start getting used to. Until October 15 this year, it will be possible to distil the wine most affected by the market crisis within the existing wine support program framework. They will carefully select which wines/growers/regions most need to eliminate their surplus. IGP producers in France want to distil 4.4 million hectolitres, 10% of a typical French harvest.
Not everyone is affected. Not the very expensive and most famous wines. The low and mid-priced wines are hit the worst, and the red wines, as well as some rosé wines, much more than the whites, even though the rosé boom seems to be continuing.
What can the wine industry do to increase consumption and/or reduce production?
Limit the harvest: You can do as in Champagne, determine the harvest quantity based on how the market looks. But lowering the quantity for everyone, is that just stupid? Some producers sell their entire production. It is also a kind of indirect market manipulation collusion.
More white wine: Since it is, above all, red wine that people drink less of, it is a good idea to plant more white grapes and hope that the trend continues. Or make white wine from red grapes. Like the Berticot-Graman cooperative that we wrote about in last month’s Brief.
Increasing wine consumption: A sensitive issue in some countries. In France, there are strong voices and organisations that trumpet the dangers of drinking wine. In addition, there are restrictions on how alcohol can be advertised. One concern is that younger people wait a long time before they start drinking wine, and sometimes they don’t start at all because they prefer ”modern” alcoholic drinks such as alcopops or hard seltzers.
As a producer, be innovative: The wine must compete with an ever-increasing range of beers, cocktails and, not least, non-alcoholic beverages. Some (very few) regions can survive being traditional; others have to offer something new and exciting, something that makes them stand out on the shelves. So, wine producers may need to let their imaginations run wild.
Perhaps those who cannot cope should simply stop making wine instead of relying on tax-funded support measures.
One way to help the situation is, of course, to go to a wine region and drink some wine.
Thus…:
Wine travel in harvest time
Plan a wine tour in the harvest season:
- Champagne, September 27 – October 1
- Champagne and Bordeaux, September 27 – October 5
- Bordeaux, October 1-5
Travel in winter (but summer)
Some of our most exceptional wine tours are during the winter. They are filled with very special experiences. In summer weather in the southern hemisphere!
You have three fantastic long-distance tours to choose from:
- Chile-Argentina in January 2024
- South Africa in February 2024
- New Zealand in March 2024
These are tours with unique and magnificent experiences.
More info on our wine tours here. “World’s Top Wine Tours“. Tours with the people who know wine and who have an unrivalled experience of wine and tours.
Travel in wine regions with someone you trust.
Wine Tours“. Tours with the people who know wine and who have an unrivalled experience of wine and tours.
Travel in wine regions with someone you trust.
Enjoy the Brief!
Britt & Per
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What’s on at BKWine Tours
BKWine is also one of the world’s leading wine tour operators. Here’s what we currently have on our scheduled wine tour program:
- Champagne, September 27 – October 1
- Bordeaux and Champagne, Sept 27 – Oct 5
- Bordeaux, October 1-5
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- Chile-Argentina, 15-28 January 2024
- South Africa, 8-18 February 2024
- New Zealand, 12-27 March 2024
We also make custom designed wine tours.
We’re different than most other wine tour operators. We are people who know wine inside out, who travel constantly in wine regions, who write award winning books about wine. Who do this out of passion. Our tours are different from others. More in wine tours: BKWineTours.com.
