The Bordeaux wine sector is confronting a serious crisis. While early reports on the 2025 harvest suggest high-quality wines, the economic reality for many producers in the Gironde region is dire.
Selling prices remain below production costs, forcing some winemakers to describe the situation as unsustainable.
Prices Below Production Costs
Denis Roux, a 55-year-old winemaker in Fronsac, highlights the severity of the problem. After a poor 2024 harvest, he had to sell wine at EUR 1 per bottle, equating to roughly EUR 1,200 per barrel (900 liters), while production costs reach EUR 1,500. Roux keeps 700 hectoliters in storage—equivalent to two and a half years of production—because of low sales.
Jean-Samuel Eynard, president of the FNSEA agricultural union in Bourg-sur-Gironde, reports that this trend is widespread: current prices cover only half the cost of production. Meanwhile, Bastien Mercier, spokesperson for the Viti33 group, has not sold any wine since January, and many wineries remain full from previous vintages.
Saturated Wineries and Risk of Bankruptcy
Laurent Rousseau, vice president of the Libourne industrial court, confirms that many estates are saturated with wine from prior vintages, and several have filed for bankruptcy. He warns that the sector is on the verge of collapse due to the oversupply of cheap wine.
Despite efforts to reduce production—including vineyard uprooting, distillation programs, and a 10% drop in Bordeaux vineyard area from 103,000 to 90,000 hectares—production continues to outpace demand. Even the recent late-summer drought could not fully mitigate surplus levels.
Legislative and Strategic Challenges
The Egalim law, designed to ensure fair prices for French farmers, has stalled in parliament for over a year, leaving producers without legislative support. In response, Michel-Eric Jacquin, newly appointed head of the Bordeaux and Bordeaux Supérieur regulatory council, suggests exploring alternative designations such as PGI Atlantique to diversify production. He believes that opening the market to new products is essential to prevent widespread closures and sustain the Bordeaux wine tradition.
Outlook
Bordeaux winegrowers are at a crossroads. High-quality vintages cannot offset the structural challenges of low prices, oversupply, and legislative delays. Without immediate action, including market diversification and policy support, the future of family-owned estates in Bordeaux may be at serious risk.
Source: Vinetur