European D.O.s call for strategic decisions to protect the future of DOP/PGI wines

Today, September 11, the first of the four meetings planned by the High Level Group on Wine Policy, created by the European Commission, took place to analyze the situation of the wine sector and identify the policies that it needs in the medium and long term so that it can continue to develop and grow. The European Commission itself, the Member States and representatives of the European wine sector participated in this group, including EFOW, the organization that represents the European wine designations of origin, to which the Spanish Conference of Wine Regulatory Councils (CECRV) belongs, the representative association of the wine DOOs at a national level. In this first session, the sectoral organizations were able to present their vision and their proposals for the future of the wine sector.

Designations of origin for wines are an emblematic success for the European Union, with approximately 80% of the EU's wine-growing areas dedicated to the production of wines with PDO/PGI. In our country, according to data from the Ministry of Agriculture, Fisheries and Food, 97% of the 961,173 hectares of wine-growing area in Spain is located in territories protected by some quality designation. Thus, wines with designation of origin are vital for the socio-economic fabric of many regions of the EU and of our country, where viticulture is often the only viable agricultural activity. However, the wine sector is currently facing serious challenges that jeopardize its future:

•    Decreasing consumption: over the last decade, wine consumption has steadily declined and European Commission forecasts suggest that this trend will continue. And in addition to wine consumption becoming more and more occasional, public authorities in some Member States have adopted a radical stance against all forms of alcohol consumption, including moderate wine consumption.
•    Changing market dynamics: there is a marked decline in red wine consumption and a fall in sales of mid-range still wines, exacerbated by fierce competition from other alcoholic beverages whose consumption remains stable.
•    Market disruptions: efforts to produce wines with no or low alcohol content continue to encounter difficulties, export markets are stagnating and, due to the geopolitical situation, the risk of trade conflicts is very high.
•    Climate challenges: climate change and associated extreme weather events (torrential rains, prolonged droughts…) are causing significant fluctuations in production, adding further instability to the sector.

EFOW President Riccardo Ricci Curbastro said: “EFOW welcomes the European Commission’s initiative of this High Level Group, which allows for a discussion on the future of the wine sector. It is crucial, during this new legislative period and in the new EC mandate, to foster a climate of dialogue and constructive engagement, avoiding the polarisation that has previously characterised discussions on the wine sector.”

During the meeting, the EFOW President presented members with proposals to build a resilient and competitive wine sector around five key pillars:

1. Targeted market support: implementing market measures to support operators facing difficulties, linked to a certain level of conditionality to ensure that these measures are implemented responsibly by operators.

2. Vineyard management: strengthening and making the vineyard planting authorisation regime more flexible, to ensure optimal management of the wine-growing potential and sustainable growth within the sector, better adapted to market demand.

3. Improving the promotion and diversification of marketing channels: improving the promotion tools and more specifically the access, implementation and justification of this measure for the beneficiaries (wineries, cooperatives and regulatory councils), which is currently the most important measure available to the wine sector within the CAP Strategic Plan to respond to the current market situation. At the same time, increasing market diversification efforts to boost competitiveness and open up new business opportunities, in particular through an ambitious EU trade strategy.

4. Promoting sustainability: promoting (through incentives rather than imposition) the implementation of sustainability measures, focusing on environmental protection and social responsibility.

5. Rigorous labeling: Ensure accurate labeling to protect transparency and maintain consumer trust