Austria seeks EU-backed plan to turn surplus red wine into industrial alcohol

Austria’s wine industry is calling for up to 10 million litres of surplus red wine to be distilled into industrial alcohol, ORF reported, as falling demand leaves many producers with unsold stocks and limited storage space.

Red wine regions in Lower Austria, including Carnuntum, the Pulkautal valley and the Thermenregion, are affected, according to Reinhard Zöchmann, president of the Lower Austrian Winegrowers’ Association. The situation also affects Burgenland.

Under crisis distillation, wine that can no longer be sold is processed into industrial alcohol, which is commonly used for medical purposes and cleaning products. The Austrian Winegrowers’ Association says the measure would help ease pressure on the market.

The plan would require approval from the European Union to qualify for funding from an EU agricultural crisis fund. Without that support, distillation would make little economic sense, Zöchmann said. Similar applications from France and Germany have already been approved.

Austria’s wine industry has yet to submit its application. Officials want to assess the situation more closely and wait for the autumn harvest to determine whether the surplus will remain at about 10 million litres.

Dry conditions have made the outlook uncertain, Zöchmann said. A total crop failure could reduce the amount of red wine available, although this is not expected.