French winemakers are suffering the consequences of their government's defense of Saddam, EU policies that keep the Euro high, and resting on their own laurels. There are too many good wines in the world now to expect to sell it just because it's French:

Riot police will be on standby this week for clashes, expected to involve up to 16,000 winemakers. Many of the demonstrators feel they have nothing to lose, since up to half of them are expected to go to the wall in the next five years unless the French government - or the Europe Union - bails them out.

Critics say French wine producers have brought the crisis on themselves by arrogantly overproducing wines of indifferent quality that do not sell.

Last year Mrs Montosson did not sell a single drop from her 50-acre vineyard for eight months because she refused the price offered by her agent. "He offered me only half of what I'd got for my wine the year before," she said. "I said it was too low and refused to sell. But afterwards the prices just fell lower and lower."

It's not all about the boycott, but that has to be a major factor.

Ah, the poor french winemakers. Demand is down, production is up and they are complaining about
not getting last years price.

The free market is a bitch.

Nah, it's because the rest of the world has finally figured out that French wine is crap.

The winemakers of other countries have figured out what the customers want and how to make it more effectively. They're not afraid to use new technologies like aging with wood chips or the use of cone separators to make good wine more cheaply, quickly, and consistently. The french are also tied in knots by obsolete marketing regulations.

http://msnbc.msn.com/id/3639040/
http://money.cnn.com/2004/08/19/pf/goodlife/french_wine/

From the article:

"Last year Mrs Montosson did not sell a single drop from her 50-acre vineyard for eight months because she refused the price offered by her agent. 'He offered me only half of what I'd got for my wine the year before,' she said. 'I said it was too low and refused to sell. But afterwards the prices just fell lower and lower.'"

....And she *still* wouldn't sell at least part of her stock after prices were falling in the first month or two after the initial offer? One can almost hear the wounded Gallic pride and arrogance in the quote: "Hmph. Zis free-mahket nonsense, it moost stop! How dare zose Amehricans and zose unwashed forehgners tell us what zey will pay for our fine French wines!"

Maybe by now Mme. Montosson has a clue. I hope so...

Hale: foreign wines are also gaining market share in France. However, the bigger problem is that tough drunk driving laws and other changes in social patterns have greatly reduced french per capita wine consuption.