In June, the European Union initially gave France about $172 million to destroy nearly 80 million gallons of wine, and the French government announced additional funds this week. Producers will use the funds to distill their wine into pure alcohol to be used for other products, like cleaning supplies or perfume.
Agriculture Minister Marc Fesneau told reporters Friday that the money was “aimed at stopping prices collapsing and so that winemakers can find sources of revenue again,” according to Agence France-Presse.
The decline in wine consumption is not new, according to Olivier Gergaud, a professor of economics at France’s KEDGE Business School who researches food and wine.