[RayChuang88]

I think the French are starting to come to the realization that no thanks to their non-support on the War on Terror, Americans are now turning big time to wines in Portugal, Italy, Australia and from US domestic production. The only French wineries that will survive are those who specialize in expensive, high-end wines that sell for over US$40 per "fifth" (750 ml) bottle.

[quantim]

Actually, it's just the opposite. They're getting hammered on the high-end big time too. They have dropped of wine lists precipitously in the better restaurants, and collectors have slowed buying Bordeaux futures and so forth.  Even that Y2K Champagne nonsense cost them dearly.

Additionally, the low end wines have never been much of a market domestically.  Their problem is they can't compete with other countries when it comes to quality on the low end price points.  Even Australia who is clobbering the French, are also suffering from gluts.