Trends
France has traditionally been the largest consumer of its own wines. However, wine consumption has been dropping in France for 40 years. During the decade of the 1990s, per capita consumption dropped by nearly 20 percent. Therefore, French wine producers must rely increasingly on foreign markets. However, consumption has also been dropping in other potential markets such as Italy, Spain and Portugal.
The result has been a continuing wine glut, often called the wine lake. This has led to the distillation of wine into industrial alcohol as well as a government program to pay farmers to pull up their grape vines through vine pull schemes. A large part of this glut is caused by the re-emergence of Languedoc wine.
Immune from these problems has been the market for Champagne as well as the market for the expensive ranked or classified wines. However, these constitute only about five percent of French production.
French regulations in 1979 created simple rules for the then-new category of Vin de pays. The Languedoc-Roussillon region has taken advantage of its ability to market varietal wines.
Read more about this topic: French Wine
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