French wine sector sees surge in business failures as small producers face mounting financial pressure

The French wine industry is facing a sharp rise in business failures, according to the latest data from Altares Dun & Bradstreet. Over the twelve months ending in June 2025, the number of collective proceedings in the wine sector reached 255 across France, marking a 49 percent increase compared to the previous year. This surge is mainly driven by liquidations, which rose to 150 cases, up 48 percent. Judicial reorganizations also increased but at a slower pace, with 67 cases representing a 40 percent rise. Safeguard procedures, though still less common at 38 cases, jumped by 73 percent.

Thierry Millon, head of studies at Altares Dun & Bradstreet, explained that the increase in safeguard procedures is a positive sign. He said it shows that business owners are seeking help from courts before reaching insolvency, which can improve their chances of recovery. However, he noted that most of the financial stress remains concentrated among small producers.

The region of Nouvelle-Aquitaine has been hit hardest by these difficulties. In the second quarter of 2025 alone, it accounted for two-thirds of all wine sector failures in France—47 out of 70 cases nationwide. Compared to the first quarter of this year, this represents an 18 percent increase for Nouvelle-Aquitaine. Most affected businesses are small operations: 62 percent have fewer than three employees and another 26 percent have between three and five employees.

While Nouvelle-Aquitaine continues to see rising numbers of liquidations—28 cases this quarter—the situation is different in other regions. Occitanie saw a decrease in failures, with only 11 cases compared to 15 at the start of the year. The Pays de la Loire region reported just one failure this quarter, down from six three months ago.

Industry analysts point to several causes behind these trends. Small producers are particularly vulnerable to market fluctuations and changing consumer habits. The economic environment remains challenging due to inflation and shifting demand both domestically and internationally. Many vineyards are struggling with lower sales and higher production costs.

The data highlights ongoing economic fragility in French viticulture, especially among smaller producers in the southwest. While some regions are seeing stabilization or improvement, others continue to face mounting pressure as more businesses enter liquidation or seek court protection. The coming months will be critical for many vineyards as they try to adapt to these difficult conditions and avoid further closures.

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