EU Pays for French Winemakers to Turn Unsold Stock Into Ethanol

The European Union disbursed €40 million ($46.4 million) to finance the distillation of unsold French wine stocks to stabilize prices amid dwindling global demand.

The emergency measure will offer €33 per hectoliter to winemakers and cooperatives to distill about 1.2 million hectoliters of surplus red and rosé wines which have witnessed a drop in prices, according to an EU regulation dated March 31. The distilled products will be used exclusively for “industrial purposes, including disinfection and pharmaceutical, and energy purposes.”