in the regions of l'Aude and l'Hérault in France have decided to join forces in order to reclaim money that is owed to them by SDVA (Eng. the Wine Traders' Company). The action follows a decision taken by the Narbonne Court of Commerce on 6 May to liquidate the SDVA, which is one seminal providers of wine to supermarkets in southern France. The Wineries Federation of l'Aude's President, Jean-Marie Fabre, said "Wine-makers are meeting about ten cooperatives, themselves victims of what has happened to the SDVA, to strive together in order to recover a combined amount of €6 or €7 million."
At the point of liquidation the SDVA's total debt was €11 million.
It has been speculated that contracts to sell wine at very low prices has allowed the SDVA problem to spiral out of control. They had hoped that their very large distribution would generate a positive turnover, but they are now so out-of-pocket that they are incapable of repaying their creditors.
Jean-Marie Fabre went on confess that the wineries "don't have huge hope of recovering their due", and to indignantly describe wine-makers as "second-rate creditors", because of how salaries in the SDVA have been prioritised.
The Languedoc produces more than a third of the grapes in France, and often is a focus for outside investment. Wines from the Mediterranean coast of Languedoc are labelled as Languedoc, those from the interior have other labels such as Fronton, Gaillac, or Limoux to the west — and Côtes du Rhône towards the east.
