The European wine industry is being battered by sliding demand due to the current inflation storm on food and drink prices, in combination with a solid 2022 harvest, which has left wine cellars filled to the brim, according to a new European Commission report.

Wine production on the continent increased 4% last year compared with the previous year, while wine stocks were 2% higher versus a five-year average. The drop in wine demand was the most significant in Portugal, down 34%. Demand also tumbled 22% in Germany, 15% in France, 10% in Spain, and 7% in Italy.

And it gets worse for the producers, as the commission stated:

“In parallel, EU wine exports for the period January to April 2023 have been 8,5% lower than the previous year, contributing to further increasing the stocks.”