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High-Level Group on Wine Policy: EU Commission's Strategic Initiative

On July 8th, the European Commission invited representatives from EU Member States to participate in a newly established High-Level Group on Wine Policy.

This initiative aims to address the challenges and opportunities facing the wine sector. The inaugural meeting is set for September 11, 2024, where stakeholder organizations will present their assessments and outlooks for the EU wine sector.

Establishment of the High-Level Group

EU Agriculture Commissioner Janusz Wojciechowski announced the formation of the High-Level Group at the Agriculture and Fisheries Council meeting on May 27, 2024. This move is a response to requests from the European wine sector, which has sought a dedicated forum to address its evolving challenges.

A Sector of Success and Challenges

Over the past two decades, the EU wine sector has been a global success story. Supported by a comprehensive regulatory framework, EU wine exports have tripled in value, contributing significantly to the EU GDP. However, the sector now faces several challenges:

  • Declining Domestic Consumption: There has been a long-term decline in wine consumption within the EU, driven by changing consumer preferences.
  • Shifting Consumer Preferences: Consumers are increasingly favoring fresher, lighter wines, or other beverages, impacting demand for traditional flagship red wines.
  • Unstable International Markets: Geopolitical factors and a less globalized context are affecting key export markets, leading to erratic import patterns.
  • Climate Change: Unpredictable production conditions and harvests due to climate change are causing significant uncertainties for producers.

Objectives of the High-Level Group

The High-Level Group on Wine Policy will serve as a platform to address these challenges and explore potential solutions. The group will meet at least three times and aims to deliver conclusions and recommendations for future policy developments by early 2025. Key areas of focus will include:

  • Adapting to Consumer Trends: Strategies to align production with evolving consumer preferences.
  • Stabilizing Export Markets: Measures to mitigate the impact of geopolitical factors on export stability.
  • Climate Adaptation: Policies to help the wine sector adapt to the effects of climate change.

Background on the EU Wine Sector

The EU wine sector is a cornerstone of the EU’s cultural heritage and a vital contributor to the economy, society, and rural areas. The wine value chain enhances the quality, sustainability, and competitiveness of the EU agricultural sector, creating approximately 3 million direct and indirect full-time jobs, predominantly in rural areas. The sector contributes an estimated €130 billion to the EU GDP, including direct and induced value across the supply chain.

The EU is the global leader in wine production, consumption, and export value, accounting for 60% of global production, 48% of global consumption, and 60% of exported value. Despite this leadership, societal and demographic changes are reshaping consumption patterns. Traditional export markets are facing de-consumption trends and geopolitical challenges, while climate change poses an ongoing threat to production stability.

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