What will the appointment of Francois
Hollande mean to the French wine industry?
We already know that France’s new
president, Monsieur Hollande, is apposed to the austerity measures and plans to
reduce the retirement age (from 62 to 60) but what does he plan to do for the
wine industry?
Well initial projections are pretty good,
Hollande is much more ‘pro-wine’ than his predecessor (Sarkozy was even quoted
as saying he preferred Coca-Cola to wine) and is never afraid to be
photographed drinking it. While he was running for president, Monsieur Hollande
visited several wine growers and seemed genuinely interested in strengthening
the French wine industry. He wanted more exports to the far east and he
listened carefully to what Chateau owners had to say. He does however believe
one of the country's main ways out of recession is through heavier taxation on
the rich - which won't go down well in many quarters of wine trade.
Many members of the wine lobby still
haven’t forgiven the socialists, for passing the Loi Evin in 1991, named after
the then Health minister Claude Evin. His measures imposed huge restrictions on
the advertising of alcohol and tobacco. France has always placed huge
significance on wine, yet bans the advertising of alcohol - ironic wouldn't you
say?
Hollande reached out to the wine industry
and connoisseurs by stating in Revue du Vin that “like many Frenchmen, I am
seduced by the excellence of the wine our country produces. I enjoy wine
tasting with friends and family… and I often open a good bottle to celebrate
big events.” Last year the wine industry contributed €7billion to the economy,
making it one of France's key industries.
The French wine industry is vehemently
opposed to deregulation of plantation rights. Owners of French wine estates
like to keep the stock low and prices high, steering well clear of the mass
production model that Australia has adopted. It will come as a relief to them
that Sarkozy is no longer in office, as he planned to liberalise rules
governing wine plantation. Hollande should however consider revising the Loi
Evin as would enable vineyards to promote their wine more freely. In the long
term, what everyone really needs is for the economy to bounce back as a whole,
something which few economic experts can predict with any degree of certainty.
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