World wine production is set to fall to its lowest level for eight years this year due to cut-backs in Europe, the US and Australia, new figures show.

Wine production will fall by between 2.5% and 6% in 2010, according to the International Organisation for Vine & Wine (OIV). Falling production will help to drain a world wine glut that has caused serious headaches for many major producer nations in recent years.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The US, European Union (EU) and Australia have seen the biggest cuts. Production in the US is set to fall by 9% to 19.9m hectolitres in 2010, while the EU will see production drop by 6%, to 151.9m hectolitres. Estimates vary on the size of Australia’s grape harvest for 2010, but the country’s Government has reported a 12% fall on 2009.

“It remains to be seen whether the drop in production will affect wine prices,” said the OIV’s director general, Federico Castellucci.
   
Despite efforts to mop up the world’s wine surplus, consumption still lags production by a considerable margin, according to the OIV. It said that global wine consumption is set to be 239.8m hectolitres, while production will be around 259.2m.

EU officials are offering to pay winemakers to rip out their vines as part of a strategy to make the bloc’s wine industry more sustainable and competitive. France’s Government announced today (18 November) that it has spent EUR47.2m (US$64.7m) in the last year on compensation for winemakers who have chosen to rip out vines. Around 7,000 hectares have so far been destroyed.

French wine production is set to fall by 2% in 2010, according to the OIV, while production in Italy will drop by 11%. However, figures show that Spain, which is the EU’s third largest wine producer, will not shed any production in 2010.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

It is largely the smaller producer nations in Central and Eastern Europe that are bearing the brunt of the EU reforms. Wine production will fall by 60% in Czech Republic and Slovakia this year, by 30% in Romania and by 23% in Austria, OIV figures show.

Stay informed for just £1! *

Subscribe to Just Drinks for unbiased coverage of the global drinks industry, offering insights into the corporate strategies of beverage manufacturers and brands worldwide.


What’s included in your subscription:
  • Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
  • Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot beverages
  • Unrivalled drinks industry comment from leading sector specialists

Ready to stay informed? Subscribe now and gain access to exclusive content.

Subscribe

Have a subscription? Sign in

For further details on subscribing, click here. Need multi-user access? Explore our corporate subscriptions now.

*After your 1-month trial, your subscription will continue at £315 per year.