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# France Confronts Wine Surplus Crisis: $216 Million Allocated for Unprecedented Disposal

Publication Date: 28.08.2023, 22:00

More than 80 million gallons of wine will be turned into pure alcohol.

In a surprising twist, France is grappling with an unexpected surplus of its renowned wines, leading to a remarkable decision to destroy excess stocks at a staggering cost. This extraordinary undertaking is set to eliminate enough wine to fill over 100 Olympic-size swimming pools, amounting to an expenditure of approximately $216 million for the nation.

The current economic landscape drives this seemingly counterproductive measure. Escalating production costs, exacerbated by recent global events, coupled with dwindling wine consumption, have created a challenging confluence for French winemakers. This surplus has left producers with an abundance they can’t sell at profitable prices, creating a crisis in even iconic wine-producing regions such as Bordeaux.

In a bid to address this predicament, the European Union initially allocated about $172 million to France in June for the disposal of nearly 80 million gallons of surplus wine. The French government has now further announced additional financial support. The allocated funds will be directed towards converting the surplus wine into pure alcohol, repurposing it for applications ranging from cleaning supplies to perfume.

Among the main reasons triggering the situation, experts named the declining wine consumption in France from its zenith in 1926 at around 136 liters per year to approximately 40 liters today. The modern consumer landscape is flooded with myriad beverage choices, leading to a decreased preference for wine. This, coupled with surging production costs and global inflation, has created a challenging environment for the wine industry. The COVID-19 pandemic has further exacerbated these issues by disrupting supply chains and driving up costs.

Source: [Ottawa Citizen](https://ottawacitizen.com/life/food/france-has-too-much-wine-and-is-paying-millions-to-destroy-the-leftovers/wcm/6a073bb1-a919-4466-871f-4276e4aab1e9)

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