EU wine industry urged to switch focus

The EU wine industry has been urged to switch its focus from producers to consumers in order to compete with the growing popularity of New World wine.

In a new report, the UK House of Lords EU committee said the “key” objective of the commission’s planned reform of the sector must be to “stimulate a greater sense of competitiveness” in the industry.

The committee argues that there has been insufficient recognition of changes in wine drinking habits and tastes in recent years and that too many EU wine producers are not responding to the demands of newer wine consumers.

Tjhe report, published on Tuesday, also says that EU attempts to subsidise a European wine industry based on small-scale production is “unsustainable” in a global wine market.

The committee concludes that:

• the commission is right in its proposal to end all distillation subsidies;
• the proposed extension of the ban on new plantings within the EU is a step in the wrong direction and such a ban is unnecessary and
• the proposed reform by which EU wines are classified and labelled do not go far enough because they maintain the increasingly artificial distinction between ‘quality’ and ‘table’ wines.

Lord Sewel, chairman of the Lords’ EU sub committee on environment and agriculture, said, “The commission has put forward serious and long-overdue proposals for reform of a wine sector which faces ever-increasing competition from New World producers.

“The present system is not only a burden on the EU tax payer, it is also damaging the industry.

“EU wine producers still produce some outstanding wines but many of them have lost touch with the demands of their consumers.

“New World wine-makers are much more consumer-focused and move quickly to meet changing demands.That is why EU wine is losing ground in the market.

“The EU wine industry can still thrive in the global market but it must take steps now to make itself more competitive and consumer driven.

“Legislative reform is certainly needed, but there is a need also for a change in mind-set on the part of many producers."

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