EUROPE TRADES TRADITION FOR PROFIT

Now that the EU has agreed on a number of wine industry reforms, what does it mean for the rest of us? In the spirit of simplicity, the EU is pushing tradition aside in favor of New World practices that work, such as clearer labeling and (gasp) marketing brands.

In the next few years you’ll see more European wine brands promoting single-grape wines like Syrah or Sauvignon Blanc. Also, fancy labels will be replaced with easier, more direct labels. How so? Producers will be able to state the grape variety and vintage on the bottle rather than simply the area of origin.

If the reforms go according to plan, overproduction will be a thing of the past – or at least not as bad as it is now. The EU will grant subsidies to poor farmers with undrinkable wine to dig up their vineyards, freeing up money and room for notable wine producers. Money that would have been spent on unprofitable wine will now be spent on marketing and emerging in new countries, such as India and China.

Furthermore, planting restrictions will eventually be phased out (2015 at the earliest), allowing better winemakers to expand according to demand.

“We are not afraid of New World wines,” said Jaime Silva, Portuguese agriculture minister, who chaired the talks, as quoted in the Financial Times. “We are losing market share but this reform gives us the chance to change tack.”