Freixenet, a leading sparkling wine producer in the world, is facing challenges due to a prolonged drought in Catalonia. The region has been experiencing extreme water shortages for almost three years, resulting in the death of vines and withered grapes in wine-growing areas like Penedès near Barcelona. Freixenet, located in this area, is at risk of losing its famous Cava sparkling wine production.
To address the crisis, Freixenet has applied for temporary lay-offs for more than 600 employees, representing almost 80 percent of its workforce. The company’s goal is to preserve jobs and navigate through the difficult situation caused by the drought. The plan has been presented to authorities and unions, with implementation scheduled for May. Freixenet has not specified how long the lay-offs will last but notes that it will depend on the season and drought conditions.
The drought in Spain has affected not only Freixenet but also the entire sparkling wine industry in the country. Grape harvests for Cava are expected to decline by more than 45 percent in 2023, resulting in a significant loss of production. Despite these challenges, Freixenet’s parent company, Henkell & Co., reported record revenues last year. The group was able to navigate through difficulties caused by grape shortage and increased costs due to its agility and resilience.
While the drought poses challenges for production capacity, there are potential positive outcomes for the industry in the long term. A shift in viticulture has been noted as more modest wine growing areas like England benefit from water scarcity conditions. As Freixenet and other wine producers adapt to changing conditions, they explore ways to overcome these challenges and continue delivering high-quality sparkling wines to consumers worldwide.
Freixenet’s resilience during this challenging time demonstrates its commitment to producing high-quality sparkling wines while navigating through difficult situations caused by external factors such as natural disasters like prolonged droughts or climate change impacts on agriculture sector worldwide.