French wine producers are set to cast aside their historic regional identities as they group together under a 'Vineyards of France' label in an attempt to counter New World competitors.

The new denomination, which represents a revolutionary marketing strategy for Gallic wine-makers, is likely to be adopted at a meeting of the National Office of Fruit, Wine and Horticulture tomorrow.

The move will allow producers of middle-range 'vins de pays' from different regions to blend their grapes.

Under present rules, only cheap table wine can be sold as a blend under a 'Made in France' banner.

The reform is deeply controversial, with opponents saying it will rip the heart out of the French wine industry.

Some small vineyards argue it will reinforce the position of merchants at their expense.

But with 70 per cent of French wine producers in the Languedoc-Roussillon region reporting a loss last year - and 20 per cent in Bordeaux - Agriculture Ministry officials say the change is necessary to boost exports.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts