(Bloomberg) - When Italy surpassed France in wine production for the first time two years ago, the news was not greeted as a welcome achievement. Aside from bragging rights, Italian vintners were faced with having to sell more wine than ever at a time when regional consumption was dropping. It meant more Italian wine would be dumped into the so- called Wine Lake, a surplus of wine produced within the European Union, which buys the stuff and turns it into industrial alcohol. In a European market of increasing supply and falling demand, that is not a winning scenario. Fortunately, however, Italian wineries are having their “Duh!” moment: by offering more well-made regional wines at reasonable prices, they can sell more wine.