RRI.CO.ID, Jakarta - The French wine industry is entering a new phase, where, after centuries of fame and export, it is now experiencing declining production and a glut of grapes.

This change has forced French winegrowers, through French authorities, to seek assistance from the European Union to save this renowned French icon.

As quoted by le monde/RFI, the decline in demand and wine exports is suspected to be due to climate change, which has altered the composition of French wines to become more alcoholic, lifestyle choices, where people are now avoiding alcoholic beverages for health reasons, and the trade tariff war related to US policies.

The European Union will support the French wine sector facing pressure and falling demand. France's struggling wine sector will receive new subsidies from the European Union as policymakers respond to falling demand, shifting trends, and increasing trade pressure from US tariffs.

The €40 million fund will be used to support French winemakers, said the bloc's agriculture chief, Christophe Hansen. This funding comes at a critical time for the French wine industry, which faces structural challenges at home and abroad.

French winegrowers, such as those in the Bordeaux, Burgundy, and Rhone Valley regions, will receive new subsidies from the European Union. They face challenges such as climate change, which is increasing sugar concentrations in grapes, and declining alcohol consumption.

A key part of the EU's intervention will focus on reducing the excess stock of unsold grapes that has weighed heavily on prices. The emergency fund will support the distillation of excess stock into ethanol for industrial use.

The EU has also introduced additional measures, including simplifying labeling rules. New terminology will replace "low alcohol" with "reduced alcohol," while drinks containing less than 0.5 percent alcohol will be labeled "alcohol-free."

Climate change is also impacting French wine production, with warmer summers increasing the sugar concentration in grapes. However, consumers are seeking wines with lower—not higher—alcohol content while overall alcohol consumption is declining.

US tariff policies, such as those imposed by President Donald Trump, are also impacting wine sales. High import tariffs make imported wines more expensive, reducing demand and impacting winegrowers' incomes.