The French governing body overseeing wine appellation regulations, the National Institute of Origin and Quality (INAO), announced this month that wine producers are now allowed to hold back more stock, following recent losses caused by extreme weather conditions. The action enables winemakers to set aside a portion of any vintage in order to maintain a supply for future use. The INAO compared the action to “crop insurance” as a measure of adaptability.
The current stock storage rules date back to 2013, put in place in order to maintain a reasonable reserve in the case of adverse conditions resulting in reduced quantity. Prior to the June 2018 announcement by the INAO, wineries were allowed to hold back an amount equal to 10% of their stock.
For background on the 2017 wine harvest in Europe, please consult this story, also on my Forbes contributor page. Thanks for reading!