France modernizes wine industry

Like all European wine-producing countries, France is set for a shake-up when the CMO’s reforms come into force this August. The French Ministry of Agriculture is also keen to  modernise the wine industry and recoup its lost market share abroad.

Following agricultural minister Michel Barnier’s request for a five-year plan for the industry, Viniflhor consulted with industry members and regional marketing bodies (interprofessions). President Sarkozy and his cabinet approved the plan last month.

One of the key objectives of the bill is to increase French wine exports from 13.5 million hectolitres (1999-2000) to 16m hl by 2013. Increasing the average value of French wine is also on the agenda. Currently, French wine is 1.9 times more expensive than the global average. It is hoped that this will rise to more than double the price of other categories by 2013.

Georges-Pierre Malpel, director of Viniflhor, gave the drinks business a general outline: “The objective of the plan is to develop the sector in three key areas by increasing competitiveness, solidarity and encouraging more individual responsibility among industry members.”

Viniflhor is anxious to streamline the industry. It has therefore been suggested that one central office (ie Viniflhor) should deal with all economic issues. Meanwhile, the Institut National des Appellations d’Origine (INAO) will be responsible for controlling the quality of and specifications for wines of geographic indication via a new committee. This will be chaired by an industry professional as opposed to a minister in order to give the industry greater autonomy.

The plan recommends reducing the number of interprofessions from 25 to 10 and regrouping them by specific geographic area. It also encourages industry members to work towards the creation of one national interprofession in charge of all wines without geographic indication.

Regional appellation rules will also be relaxed allowing producers  to mention variety and vintage on the front label. This, explained Malpel, was to make the labels easier to understand in the export markets.

The plan also recommends the better application of the country’s rich R&D programme by encouraging l’Institut du Vigne et du Vin to work closely with the interprofessions. In fact, Malpel is keen to see industry members work together more in order to better compete in the commercial market place but said “it is difficult as French wine producers insist on competing with one another.”

Malpel thinks the real test will be implementing the plan. “It is a question of whether the plan will encourage industry professionals to adapt to the global markets and allow France to maintain its market share abroad. Although we, in the public sector, encourage this development, it is down to industry members to make it happen.” Malpel also expects the controversial issue of wine’s portrayal by the press to arise following two court cases against journalists for advertising alcohol.

Fionnuala Synnott, 04/06/08