The Irish Times reports that the European Commission has approved a €40 million emergency scheme to help French producers remove surplus red wine and rosé from the market by distilling it into ethanol and industrial alcohol. The move comes after weaker drinking demand and softer exports pushed average bulk prices down 19 per cent, with Brussels warning that oversupply could deepen the crisis if stocks are not cut back.
EU
-
Trump Tariffs Keep Pushing Up EU Wine Prices
Bloomberg says EU wine is still feeling the after effects of US tariffs, with duties having moved from 10% to 15% last year and price rises now feeding through at different speeds depending on region, grape and label. The broader significance is that this is no longer just a trade policy story, it is now a pricing and availability story for importers, merchants and drinkers, with retailers also experimenting with ways to source European bottles already inside the US in order to soften the blow.
-
EU Enters ‘Last Mile’ of Trade Deal Negotiations With Australia
Reuters reports that the EU is in the final phase of negotiating a trade deal with Australia, and wine and spirits are explicitly among the sectors expected to benefit if tariffs are reduced. For the wine trade, the significance is clear, Brussels says the agreement could lift EU exports to Australia by a third over 10 years and remove up to €1 billion in duties, making this one of the more consequential policy developments for European producers and exporters today.
-
China Warns French Wine Could Be Targeted in EU Tariff Dispute
Reuters reports that China has signalled French wine could face retaliation if France pushes the EU towards tougher tariff measures against Chinese imports, a warning that underlines how politically exposed premium wine and spirits exports can be when trade rows escalate, and comes as investors watch for knock on effects across French drinks groups and their Asian sales.
-
EU Parliament Backs New Measures to Protect and Promote the Wine Sector
The European Parliament says MEPs backed new legislation designed to help wine producers manage market pressures and climate risks, and to open opportunities in tourism and exports. The press release highlights clearer labelling for no and low alcohol wines, with “alcohol-free 0.0%” for wines at or below 0.05% ABV and “alcohol reduced” for wines above 0.5% ABV that are at least 30% lower than the category’s standard strength before dealcoholisation. It also outlines extra crisis support for extreme weather and disease, EU funding options for grubbing up, and higher co-financing for promotion, including wine tourism and third-country marketing, with the deal now needing Council approval to enter into force.