Ruining so much wine may sound ludicrous, but there’s a straightforward economic reason this is happening: Making wine is getting more expensive due in part to recent world events, and people are drinking less of it. That has left some producers with a surplus that they cannot price high enough to make a profit. Now, some of France’s most famous wine-producing regions, like Bordeaux, are struggling.
In June, the European Union initially gave France about $172 million to destroy nearly 80 million gallons of wine, and the French government announced additional funds this week. Producers will use the funds to distill their wine into pure alcohol to be used for other products, such as cleaning supplies or perfume.
Agriculture Minister Marc Fesneau told reporters Friday that the money was “aimed at stopping prices collapsing and so that winemakers can find sources of revenue again,” according to Agence France-Presse.
The decline in wine consumption is not new, according to Olivier Gergaud, a professor of economics at France’s KEDGE Business School who researches food and wine.
Wine consumption in France has been plummeting since its peak in 1926, when the average French citizen drank about 136 liters per year. Today, that number is closer to 40 liters, The Washington Post previously reported.
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