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French Wine Sector Under Pressure as Insolvency Cases Surge by 49%

France’s wine sector is grappling with a deepening crisis, as confirmed by the latest figures published by the law firm Altares Dun & Bradstreet.

In the 12 months ending June 2025, a total of 255 collective proceedings—including judicial reorganizations, liquidations, and safeguard requests—were initiated by wine-growing businesses. This marks a 49% increase compared to the same period a year earlier, shedding light on the growing economic fragility of one of France’s most emblematic industries.

Liquidations Lead the Rise

The most significant contributor to the rise is the sharp increase in liquidations, which surged by 48%, totaling 150 cases. Judicial reorganizations also rose by 40%, reaching 67 cases, while safeguard procedures—although still limited in number—saw the largest relative growth at 73%, climbing to 38 filings.

According to Thierry Millon, research director at Altares Dun & Bradstreet, this uptick in legal action is a double-edged sword. On the one hand, it reflects mounting financial pressure on wineries, particularly small-scale producers; on the other, it may also indicate a proactive approach by some owners, who seek legal remedies before reaching a point of no return.

“These proceedings can offer an opportunity for restructuring and survival—especially when filed before insolvency becomes irreversible,” Millon said.

Nouvelle-Aquitaine: The Epicenter of Crisis

Geographically, the crisis is heavily concentrated in Nouvelle-Aquitaine, home to Bordeaux, one of the world’s most famous wine-producing regions. In the second quarter of 2025, this region accounted for 47 of the 70 cases recorded nationwide—about 67% of the total. This represents an 18% increase compared to the first quarter of the year.

In contrast, other regions are showing signs of stabilization or even improvement. For instance:

  • Occitanie recorded 11 cases, down from 15 in Q1.
  • Pays de la Loire saw only 1 insolvency, compared to 6 in the previous quarter.

These regional disparities emphasize how localized factors, such as production surpluses, market dependency, and vineyard structure, influence the severity of the downturn.

Small Businesses Hit the Hardest

A closer look at the affected businesses reveals that 62% employ fewer than three people, and another 26% have between three and five employees. This underlines the particular vulnerability of micro-enterprises, which often lack the financial reserves or structural flexibility to navigate prolonged downturns.

Several macro-economic pressures are compounding the situation:

  • Falling domestic wine consumption
  • Challenging export conditions, particularly in major markets like China and the U.S.
  • Tight credit conditions and cash flow shortages

The ripple effects are likely to impact not just the growers but also bottlers, distributors, and rural communities dependent on viticulture.

A Sector in Need of Structural Reform

Experts suggest that strategic intervention is needed to prevent a deeper unraveling of France’s wine-growing fabric. While legal procedures may offer short-term relief, the long-term health of the sector will require investment, innovation, and targeted support, especially for small-scale producers.

As France navigates its post-COVID economic recovery and the broader transformation of global wine markets, its wine sector stands at a crossroads: restructure and adapt, or risk further contraction.

Source: Vinetur

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