Posted on 11/27/2006 11:34:11 PM PST by MadIvan
MORE than eight million litres of this season's production of Beaujolais wine is being turned into near-pure alcohol for use in disinfectants, cleaning products or fuel additives, as French vineyards face up to a massive overproduction crisis.
A chronic wine glut, falling domestic consumption and fierce overseas competition have converged to create a wine crisis on an unprecedented scale. With "lakes" of unsold wine threatening to undermine prices, the European Union has resorted to paying vintners to destroy some of their stock each year, distilling billions of bottles of perfectly drinkable wine into pure alcohol.
Sceptics say the measure, which cost EU taxpayers 150 million (£100 million) last year alone, is merely a quick fix that does not get to the root of the problem - which is that Europe simply produces too much wine for too few consumers.
A new plan aims to fix at least the production side by downsizing Europe's wine industry by ripping out huge swaths of vineyards. Some 100,000 acres of vines, more than 10 per cent of Europe's total, could be lost over the next five years across Spain, France and Italy.
But as more wine is distilled each year - reaching 2.8 billion litres in 2005 - even the most virulent opponents of the EU plan acknowledge that something has got to give. "For years, we shrugged the crisis off as a temporary downturn," said Gilles de Longevialle, who heads a group representing the vintners of Beaujolais. "But we're beginning to see it's here to stay."
Until last year, so-called "crisis distillations" were considered only for the cheapest table wines. Now, quality wines are also boiled away in large quantities.
So for the second autumn in a row, Philippe Terrollion, director of the Beaujolais Distillery in central-eastern France, sent out a fleet of lorries to pick up an expected 8.5 million litres of unbottled, unsold Beaujolais. That's enough to fill about 125 swimming pools.
"For vintners, the decision to distil is a hard one," Mr Terrollion said. "But in the end, they have to do it to get rid of the old stuff to make room for the new."
With funds from the EU and local authorities, Mr Terrollion paid vintners the EU-fixed price of about 35 cents (24p) per litre - about one-fifth of the average price paid by wholesalers for bottled wine sold for consumption.
The problem is, the wine just doesn't sell. European vintages are languishing on the shelf as consumers around the globe reach for bottles from New World producers in the likes of Chile, Australia and South Africa. Louis-Fabrice Latour, who heads the Louis Latour label in Burgundy, admitted a feeling of superiority had made them slow to react. "In France, we used to think we were the biggest and best and no-one could touch us," he said.
The wine-makers warn against tearing out vineyards, saying that would effectively tie their hands and prevent them from adapting to a changing world market. They point to India and China - where an emerging middle-class is beginning to acquire taste for wine. "When the Chinese really get into wine, demand for our product is going to explode to the point where if we cut back today, we might not be able to fill it," Mr de Longevialle said.
But with distilleries working overtime, nearly everyone admits the status quo is not viable. "It's clear we can't go on like this," Mr Terrollion said. "But we can't just snuff out wine-making, especially in a region like ours. Wine runs in our veins."
• WINE consumption is down across Europe, with Italy and France leading the decline.
In 1980, the French and the Italians each consumed about 5 billion litres of wine a year, according to the European Commission. By 2005, yearly consumption in both countries had dipped to roughly 3 billion litres.
Many French vintners blame tougher laws aimed at curbing drinking and driving for the country's precipitous decline in wine consumption. In 1960, the average Frenchman drank 3.1 bottles of wine per week. Today, the average intake is 1.4 bottles per week and falling, according to Michel Baldassini, who heads the main Burgundy wine growers' association.
Once a French dietary staple as fundamental as bread or cheese, wine is increasingly regarded, and treated, as a luxury product, Mr Baldassini said.
The change is hurting middle market regions like Beaujolais while favouring the vineyards of Champagne, Bordeaux and Burgundy - the prestigious regions on which Europe is betting its winemaking future.
I was in France last year at this time when the Beaujolais wine was marketed. The bottle we had at lunch wasn't very good wine! The French people I was eating with conceded that Beaujolais is more of a marketing strategy than a good wine.
For those not familiar with it, Beaujolais is released on one day in late November every year. It is done with great fan fair. There are posters all over the cities and restaurants announcing the vintage. The producers seal containers and ship to other countries with everyone getting their first taste on the same day. That is supposed to be the "hook".
Ivan, this should make the circuit on talk radio.
A very important commentary about the wonders
of free enterprise.
Only a generation ago the thought of competing with
french wines was unthinkable.
That right, Gilles. And your new islamic masters will be tearing down the rest of your vineyards in due time.
This is just too funny. A nation of winos undergoing delirium tremens en masse.
Ivan,
I think it is a real shame that the regular people are being hurt by this. These people are not anti-American like their government is. I have been to France a number of times (especially in the south) and the regular people don't have this hatred for America like the government. Just my two cents.
Bob
Yes. There are no French wines on any of the shelves in North Carolina that I've seen. I drink the Aussie stuff myself, but always check for Frog wine just out of curiosity.
Actually, it would be nice if Georgian wines replaced French for US consumption. Instead of supporting a bunch of 'winers', we'd be supporting brave people facing the Bear.
Somehow I have the feeling that that combination will be buying a round-trip ticket.
"Louis-Fabrice Latour, who heads the Louis Latour label in Burgundy, admitted a feeling of superiority had made them slow to react. "In France, we used to think we were the biggest and best and no-one could touch us," he said."
Pompous, smug, arrogant jerks. They can't sell a car in the USA either.
As for their women... After 6 months in Belgium:
Give me a California Zinfindel or Australian Sharraz any day.
Give me a California Zinfindel or Australian Sharraz any day.
Maybe. But I get the feeling I have read this before. Didn't they do this last year as well?
Either way, the Vischey dream of retiring to the idyllic lifestyle of running a vineyard has been chucked out the window. Too bad, Jacques.
"In France, we used to think we were the biggest and best and no-one could touch us," he said.
Uh-yup. We noticed. Now no one wants to touch your sorry @ss vischy crap.
As far as market demand in China? Who's to say the Chinese won't chemically deconstruct the first few bottles of expensive french wine and come out with a kool-aid based knock off that tastes better and costs one tenth of French spew inside the first week? If there's a Chinese market to be exploited, bet on the Chinese to be the ones to exploit it. Don't the French ever learn? Nah...
Ivan, I know I drink a glass or two of wine nearly every day and I haven't had a glass of french wine in a long damn time. Don't intend to either. Hope this is adding to the french winemakers woes.
Just trying to do my little part.
Calif wines are just fine thank you.
This is a function of three things:
1. Increased Muslim population. I wouldn't be surprised if pork products also have decreased. It's not just that Muslims won't drink it, but that even French people have to be sensitive to not offend Muslims so won't offer it on the menu at some events.
2. Demographics. France is rapidly aging. Older people tend to go for quality over quantity. The same is happening in German beer consumption.
3. Anglosphere competition. I think that Britain was always Frances biggest export market for wine (and the US too). But did you notice that most of the competitors are part of the Anglosphere: the US, Australia, New Zealand, South Africa. Given the choice, Anglosphere members will choose the wines from their compatriots, especially since the tariffs are usually lower.
4. France has been horrible at marketing its product and at anticipating the trends of the market. They are of the "if you ferment it, they will come" school. Obviously, this has failed.
France can't compete at the low end of the market and can't seem to increase its share of the high end. Paradoxically, the slow food/local food movement championed by the French has had the effect of reducing imports to the US. After all, it burns an awful lot of hydrocarbons just to ship some wine bottles across the Atlantic.
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