Probably 10% of Americans who used to buy French wine are now buying alternative bottles from Australia, Spain, Chile, and California
Where'd you get the 10% figure? I would think it would be higher than that by a country mile - more like 60%.
The one thing French wine used to have over other bottles was mystique; there was a whole mythology and romanticism practically revolving around French wine.
How does a product get mystique and how does a product get mystique back once lost?
What the American boycott did was cause a large number of people in a short period of time to "look behind the curtain." When they did so and found that French wine, although usually quite good, was no more mysterious or romantic than wine from Chile, Australia and so on, the bubble burst and it's impossible to put it back together again.
In other words, once French wine lost that emotional connection with consumers (for lack of a better way to explain it), it was just another bottle among many to be chosen.
Europe's indigenous wine-drinking populations are on the wane, too. The burgeoning Muslim population isn't really the best demographic for wine sales.
Don't forget the Virginia wines!
Include me in that 10%. I used to purchase French wines--but I never will again. Napa Valley Merlots and Cabs are just as good anyway.