France Launches Wine Distillation Program

France has opened a new campaign to distill surplus wine as the country’s wine sector struggles with falling consumption, high inventories and weaker exports, according to FranceAgriMer, the national agency that oversees agricultural markets. The program, financed with 40 million euros in European crisis reserves, is aimed at removing excess volumes from the market and sending them to industrial or energy uses.

The measure applies to red and rosé wines with an alcohol level of at least 11%. It is expected to cover more than 1.2 million hectoliters of surplus wine. Under the plan, wine owners will receive 30 euros per hectoliter, while distillers will receive 3 euros per hectoliter. The total support therefore reaches 33 euros per hectoliter. Each operator must submit at least 30 hectoliters for distillation.

FranceAgriMer said the program is open to wine producers, cooperatives, producer organizations, merchants and wine retailers. Only certified distillers can take part in the process. If applications exceed the 40 million euro budget, a stabilization coefficient will be used to reduce the volume accepted for distillation without changing the aid paid per hectoliter.

Applications can be filed from April 20 through May 12, 2026. Payments are scheduled to be made by the end of 2026.

The move comes as France, the world’s largest wine exporter by value, continues to face pressure from lower domestic demand and a difficult market environment. The government has already turned to European crisis funds as part of a broader effort to ease strain on the sector, which has also been affected by vineyard removals and declining exports.