French Wine Outlook Cut Again as Hail Damages Bordeaux Vineyards

(Bloomberg) - France cut its outlook for wine production for a second time in two months after hail damaged vineyards in the Bordeaux region and cold and humidity hurt pollination, leading to fruit losses.

Output may climb 7.5 percent to 44.5 million hectoliters (1.17 billion gallons) from 41.4 million hectoliters in 2012, the Agriculture Ministry wrote in a report today. The forecast was cut by 1.3 million hectoliters from a month ago, equivalent to 174 million bottles.

Hailstorms in the Bordeaux region at the start of August damaged vines in the Libournais area, which includes Pomerol and Saint-Emilion, as well as the Entre-Deux-Mers area, the ministry said. That caused losses estimated at about 600,000 hectoliters, equal to 78 million bottles.

“Many violent storms damaged vines on vast areas, especially in the Centre region, in Burgundy and above all in the Bordeaux region,” the ministry wrote.

Vines across the country suffered from failed grape development due to unpollinated flowers, called coulure by growers and caused by either unusually cold and humid conditions or excessive warmth. France’s average temperature in June was 0.7 degree Celsius (1.3 degrees Fahrenheit) lower than normal, with excess rain in the southwest region that includes Bordeaux.

The ministry had forecast last month the volume of the 2013 vintage would be 45.8 million hectoliters, already down from an initial outlook in July of 46.6 million hectoliters.