French crisis

Dec 08, 2004 3 Replies

French Wine Growers Protest Weak Market



2 hours, 23 minutes ago World - AP


By WILLIAM J. KOLE, Associated Press Writer



PARIS - Wine is less a beverage than an elixir of life in France, but the country's vintners say they're vexed by a problem that threatens their livelihood - too much of a good thing and not enough people drinking it.


AP Photo


Pinched by overproduction, shrinking exports, advertising restrictions, an aggressive campaign against alcohol abuse and changing drinking habits, at least 6,000 growers and winemakers staged spirited demonstrations nationwide Wednesday to press the government for help.


"We are a sector in crisis," said Jean-Michel Lemetayer, the head of France's main farmer union, urging the state to bail out an industry awash in a sea of Chablis and Bordeaux.


Vintners wearing black armbands marched through Bordeaux, Avignon, Angers, Macon, Nantes, Tours and other cities in key winemaking regions to urge the Agriculture Ministry to help offset their financial losses.


Protesters from vineyards that make the celebrated Cote du Rhone reds carried a mock coffin with the inscription: "Here lies the last winemaker."


France's wine industry, which employs about 500,000 people, says exports through Aug. 31 dropped by more than 5.5 percent in volume and 9.6 percent in value. Experts say Bordeaux was particularly hard hit, with foreign sales of its signature reds down 25 percent.


Vintners say overproduction worldwide, and especially in France - which harvested a bumper crop of grapes this year - has glutted a market where French wines already face fierce competition from vintages from California, Chile and Australia.


In the past, producers of cheap table wine suffered the most when there was a surplus. Now, makers of more prestigious "appellation" wines face bankruptcy if prices keep sinking, the Confederation of French Wine Cooperatives warned.


Agriculture Minister Dominique Bussereau promised to meet with industry leaders next week. "The government understands these difficulties," he said.


Aggressive campaigns against alcohol abuse and drunken driving also appear to have curbed consumption.


President Jacques Chirac, determined to reduce the 45,000 deaths a year blamed on alcohol, launched a crackdown in 2002 that officials say has led to a dramatic decline in road deaths - but also has been blamed for a drop in wine sales.


"Thanks to the sword thrusts by the French state, wine is becoming synonymous with alcoholism," the Wine Academy of France, a group representing top wine makers and growers, said in a statement last week.


The industry is lobbying the government to ease tough restrictions on alcohol advertising in an effort to stimulate sales and counter the growing popularity of beer and other beverages among younger drinkers.


The average Frenchman now drinks half as much wine as in 1961. Nonetheless, France continues to rank No. 1 in the world in per capita wine consumption, with the average person putting away some 13 gallons a year.


"We just want to promote products that consumers already understand carry no risk if they drink with moderation," Lemetayer said.


He and others contend that wine - which traditionally has enjoyed special protections as a part of French culture - shouldn't be lumped with hard liquor like whiskey.


"Wine is a part of France's cultural heritage. We shouldn't demonize it," said Karine Pech, 28, who works in publishing in Paris. "It's not a strong drink, and consumed with moderation, it's a part of a good meal."


Since 1991, advertisements for alcoholic drinks in France have been allowed to contain only factual information about a product, including its name, manufacturer, alcohol content and origin.



Last month, the state-funded National Association for the Prevention of Alcoholism and Addiction urged Chirac to oppose a move in parliament to let print or television ads also mention the color, smell and taste of wines.



But under pressure from vintners, Chirac's ruling conservatives in the lower chamber backed the push to loosen the advertising restrictions. The Senate is expected to take up the measure in January.



Gregory Lozinski, a 22-year-old businessman, said he empathizes with winemakers - even though he only drinks about a bottle a week.



"I can understand that the wine industry is anxious," he said. "I'm a partisan of freedom: If you want to get drunk and die of alcohol abuse, that's your problem."


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Oh yes, that's a really sad story... and although there is some truth in blaming the authorities for not promoting wine drinking as a part of savoir-faire or even savoir-boire (Monsieur Chirac prefers beer to wine!), growers should ask themselves why

  1. the world needs hundreds of french appellations? obviously regional appellations give a clou to what you might expect in a bottle, and wine amateurs can (pretend?) to distinguish between a Margaux and a Saint-Julien, but who can tell the difference between a Montagne-Saint-Emilion and a Puisseguin-Saint-Emilion. Differences within the Clos de Vougeot are probably bigger according to the talent and greed of the grower that the difference between a Latricière-Chambertin and a Chambertin-Clos de Bèze from the same grower.

  1. restaurant owners discourage wine consumption through hefty mark-ups? Pretending that they earn almost nothing on the food they sell, the price of the wine bottle is multiplied by 3, sometimes by 5 or 6 to allow for a decent overall income. Why should wine-drinkers subsidize the meals of teetotallers?

  2. they produce so much junk for French supermarkets? even if their côtes de castillon or their bordeaux supérieur sells for a price that would not cover the production costs, the smart professional wine buyers will still find someone who delivers a comparable product at an even lower price. What applies to tomatoes and cabbage is also valid for wine!

  1. some estates are still extremely succesful: for many types of wine, some French growers still produce the benchmark wines: almost nothing compares to a top-notch claret, a fine Burgundy, a great Rhône wine and even a well made Muscadet has few equivalents in the world. But instead of getting an inspiration from the best producers in their own region, growers are trying to be the Chileans and the Aussies by the own game, i.e. with varietal wines. If you consider the average size of a French wine farm, it is pretty unlikely that they will reconquer shelf space in the supermarkets, but is that really the objective? Shouldn't they copy the German model by fostering estate visits and direct sales?

Best regards

Yves

winemaker."

California,

Nonetheless,

consumption,

Yves

From you Lux point of view, you have a very clear view of the situation, although I might add a few comments.

The recent attempt by Renou to reform the AOC system found favour only among the minority of growers that make the best wines in France. Unfortunately, there is this idea that one must be democratic even in the wine world... and so the majority shot down some really bold reforms that would have defined a new competitive ground for French wine, away from the suicidal battle against volume low end varietal wine. (No need to remind me that Chile and Australia also make great wines, I am well aware).

AOCs are also democratically run, and so if the majority makes crappy wine, they are quite capable of punishing the best producers (the ones that make the reputation of that AOC!) by refusing the "agrément". I can mention many to whom this has happened, despite the tastings being "blind", you can easily tell a Causses Marine from the rest of the Gaillac stuff... and so you can find some of these guys having to label their wines "table wine", not for snobbery reasons like in Tuscany, but due to the absurd system. Lescarret risked getting into big trouble by labelling his wine "Appellation d'Origine Non Controlee". Many others are victims of this (Baudouin, Arena, Thevenet, etc.).

The problems here in France are numerous. You mentioned some of them.

About restaurants, the price for wines in most restaurant is truly a ripoff, hardly an incentive to drink wine.

Restaurants are also to blame for not adopting a new attitude toward alcohol, promoting things like a wide choice of quality wines by the glass (today's lunch in France is no longer what it used to be, a whole bottle is often too much, and so most people drink water...), and generally collaborating toward the adoption of a new intelligent wine drinking culture, with notions like the "designated driver".

Winemakers OTOH are still producing entire lakes of ghastly swill, supermarket junk. This wine is still the cheapest way to get drunk in France, cheaper than beer even (I have worked out a chart proving this).

The government does not help, by lumping all production of wine under the same general category, they are helping kill the industry. The argument is, alcohol causes deaths, most alcohol in France comes from wine, ergo run an anti-wine campaign. To make things worse, the winemakers are reacting by providing specious arguments for wine as a healthy drink. Neither side can seem to reason in nuances, everything is black or white, right or wrong, for us or against us (popular philosophy in these times).

Regarding the German model, I must say that most quality domaines here promote visits and tastings like in Germany. This is not quite as easy in Italy, where estate visits are much more difficult, especially in Tuscany and increasingly in Piemonte. But then again, Italy is going through its own changes, that's a whole new topic...

Best

Mike

Mike Tommasi, Six Fours, France email link

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The January 2005 issue of Decanter that I just received contains two short stories in the news section concerning this matter.

"French exports plummet". According to the FEVS exports of still wines fell 5.6% in volume and 9.6% in value in the first 8 months of 2004 compared to the same period last year. Bordeaux suffered most, with exports down by 10.4% in volume and 25.4% in value. On the bright side, Champagne grew 7% in volume and 10.3% in value. Between 1998 and 2003, wine exports fell by 12%. Bordeaux trade chief Christian Delpeuch is wanting a vine pull scheme to increase quality, creation of a mixed vins de pays/vins d'appellation zone, and use f oak chips in generic wines. He claims: "30% of our wine is either not adapted to the market or is of questionable quality."

"French consider PR move". The government is considering making health warnings for pregnant women compulsory on wine bottles. The French deputies have voted to ammend the Evin law to allow wider advertising of wine.

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