A worldwide problem in wine production with an excess of production over consumption. The term wine lake was coined for this in the 1970s. The reasons are higher yields due to improved cultivation methods, more effective pest control, widespread use of fertilisers and cultivation of high-yielding grape varieties. Furthermore, wine consumption began to decline in important wine-producing countries such as Argentina, France, Italy, Spain and the USSR, which are also important sales markets. The consequence of the surplus was a drop in prices in the lower market segment. At the end of the 1980s, a peak of just under 20% was reached. Within the EU, countermeasures such as grubbing-up premiums and compulsory distillation were therefore adopted in the 1980s. Nevertheless, there is still a difference of between 5 and 10%. See also under wine law (CMO) and wine production volumes.
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