The European Commission has approved the release of €40 million from the agricultural reserve to support French wine producers facing severe market pressure. The measure is intended to stabilise prices and reduce surplus stocks through a temporary crisis distillation scheme targeting red and rosé wines.
Under the plan, up to 1.2 million hectolitres of wine will be withdrawn from the market, a quantity considered surplus and currently weighing on prices. Producers who choose to send their stocks for distillation will receive support of up to €33 per hectolitre. During the process, the wine is converted into alcohol intended for industrial or energy use.
Market pressures in the French wine sector
The crisis affecting the French wine sector is attributed to a combination of factors, including declining consumption, shifts in consumer preferences, the impact of climate change and disruptions in international trade.
Despite production falling by around 16% compared with the average, bulk wine prices have dropped by almost 20% in recent years. At the same time, both consumption and exports have continued to decline.
Previous interventions at EU level have already included the withdrawal of more than 3.5 million hectolitres of wine and the uprooting of 35,000 hectares of vineyards. However, the market remains under pressure.
Emergency measure to prevent further disruption
In the regulation on the temporary emergency crisis distillation measure for the French wine sector during the 2025–2026 marketing year, dated 31 March 2026, the European Commission states that the intervention is intended to prevent further deterioration of the market and the potential spread of the crisis to other Member States.
The regulation also establishes a framework for the use of the distilled product, which is not permitted to return to the food and beverage market. Instead, the alcohol produced through distillation will be directed exclusively towards industrial, pharmaceutical or energy uses, preventing additional distortions in the wine market.
The measure is characterised as urgent, with payments to producers expected to be completed by the end of 2026.
Part of broader EU wine policy adjustments
The initiative forms part of a broader policy framework for the wine sector aimed at improving production management and helping the industry adapt to evolving market conditions.