EU PROPOSAL FURTHER ANGERS NORTHERN VINTNERS

As you’ll recall, the EU Commission is currently proposing a number of wine industry reforms, much to the distress of many in the industry. The latest upset comes from Germany and other northern nations following a proposal that would restrict the definition of wine to grapes, effectively barring traditional “wines” produced from apples and other berries from being labeled as wine. Several northern countries, including Germany, are already upset about a proposal to bar producers from adding sugar to their wines, another traditional practice in northern Europe.

According to the AP, the Commission is willing to work out a deal “to avoid additional dispute over a small issue like apple wines.”

The EU is also debating other proposals to help reduce subsidies for distillation and storage, cutback on surpluses and improve marketing. To gain a quick refresher of those proposals, click here.

In the 2007-2008 marketing year, certain EU wine producers will receive an extra $742 million in aid to improve quality and competition against New World producers. The subsidies will span 16 EU nations, including Spain (162 million euros), France (111 million euros) and Italy (101 million euros), to help change wine varieties, relocate vineyards and improve growing techniques. The other nations that will get subsidies are Portugal, Romania, Bulgaria, Germany, Hungary, the Czech Republic, Greece, Austria, Slovenia, Cyprus, Slovakia, Malta and Luxembourg, according to Bloomberg.