France is spending $216 million to destroy wine

French wine lovers, we have some terrible news.

The French government has announced that it has set aside 200m euros (or about $216 million) to help fund the destruction of surplus wine in the country. That’s right, they’re spending 200 million euros to get rid of wine.

The move is an attempt to help producers who are struggling due to a decline in demand, the Guardian reports. The French government says that the cost of producing the wine is greater than the wine can currently be sold for, ultimately causing wineries to lose money with the sale of every bottle.

It’s become a growing issue in the Bordeaux region of France, an area that has struggled with an increased cost of living coupled with decreased demand for wine after COVID-19 saw the closure of many bars and restaurants where its wine was sold. The news also comes after an exceptionally hot summer in Europe.

After the wines are destroyed, the alcohol may be sold to make things like perfume or cleaning products.

As the Guardian reported, French agriculture minister Marc Fesneau told reporters that the initiative is “aimed at stopping prices collapsing and so that winemakers can find sources of revenue again.” Fesneau encouraged winemakers to plan for the future and adapt their businesses to be more sustainable.

In Bordeaux, the agriculture ministry announced a 57-million-euro fund in June to help finance pulling up around 9,500 hectares of vineyards in the region. Producers are being encouraged to invest in other crops, such as olives.

The EU initially allocated 160 million euros for the destruction of the wine, and the French government added additional cash to bring the fund to 200 million euros.

Despite the difficulties it’s facing, French wine and spirits were among the most exported items from the country in 2022. The Federation of French Wine and Spirits Exporters said that exports of French wine and spirits reached a record 17.2 billion euros, a 10.8% increase compared with 2021.