The Regulatory Council of the Denominación de Origen Calificada (DOCa) Rioja has officially approved the third phase of its Plan for the Recovery of Balance, alongside the ratification of a 15.7 million euro budget for 2025.
This budget allocation mirrors the previous year's funding, signaling the continuation of the region's commitment to maintaining the balance between supply and demand in a volatile wine market. The plan, which began in 2023, has already reduced more than 90 million liters of wine over two years and is poised to protect the profitability of both wineries and winegrowers during a time of significant sectoral change.
Broad Support and Key Objectives
The approval of the plan, promoted by the Interprofessional Organisation of Rioja Wine (OIPVR), received overwhelming support from the sector, with more than 90% of votes in favor at a plenary session. The plan aims to address key challenges in the wine industry, particularly the adjustment of supply to demand, while introducing innovative solutions to improve productivity and quality control.
Since its launch, the plan has implemented several notable measures, including:
- Artificial Intelligence for Production Control: A cutting-edge approach to optimize vineyard management, ensuring higher quality and consistency in production.
- Reduction of Bureaucratic Burden: Streamlining administrative processes for winegrowers to ease operational challenges.
- Enhanced Quality Controls: Strengthening quality assurance before marketing, reinforcing the region's commitment to premium wines.
New Initiatives in Phase Three
The third phase of the Recovery Plan introduces fresh measures aimed at further enhancing the region's long-term profitability. A significant new initiative is the voluntary adjustment of vineyard plant mass, with a cap of 5% of the registered vineyard area. This will primarily affect red varieties with high productive potential, particularly focusing on ensuring a sustainable balance between production and demand. Additionally, the plan introduces a bonus for the re-grafting of red varieties into white or minority red varieties, which seeks to diversify the region's offerings and meet evolving market trends.
Financial Overview: Budget and Allocations
The approved budget for 2025 is 15,721,698 euros, to be shared between wineries (60.4%) and winegrowers (39.6%). This distribution results in a 5% reduction in the average cost per card for winegrowers compared to 2024. A substantial portion of the budget, 59%, will be dedicated to promotional activities aimed at strengthening the Rioja brand both domestically and internationally.
Among the key allocations are:
- 9.3 Million Euros for Promotion: Aimed at advertising campaigns, international media collaborations, and promotional events to enhance Rioja's visibility and sales. Notably, 2025 will mark the Centenary of the Qualified Designation of Origin, with special programs planned to commemorate this milestone.
- Strategic Projects: Funds will support the development of the Rioja Wine Academy and the continuation of the Sensory Control Plan via the Regulatory Council’s Tasting Panel.
- Artificial Intelligence in Viticulture: The ongoing AI project for vineyard management will receive further funding to ensure the optimization of vineyard practices and quality control.
Strengthening Rioja's Global Position
Fernando Ezquerro, president of the Regulatory Council, emphasized the importance of these measures in ensuring the economic stability of Rioja winegrowers and wineries. He highlighted that, despite global challenges affecting wine consumption, Rioja has seen positive growth, with a 2% increase in back labels compared to the previous year.
This positive performance underscores the necessity for continued work on maintaining equilibrium between supply and demand, with the promotional activities and strategic initiatives aimed at boosting Rioja's brand image and sales. This includes reinforcing key national and international markets, strengthening relationships with importers and distributors, and launching targeted advertising campaigns.
Looking Ahead to 2025
The year 2025 represents a pivotal moment for the DOCa Rioja, as it celebrates the centenary of its Qualified Designation of Origin. With a clear focus on protecting the economic interests of the wine sector and boosting the region's competitiveness in the global market, the approved measures and budget will ensure Rioja's leadership position in the wine industry for years to come.
The Recovery Plan’s ongoing commitment to quality, innovation, and sustainable practices demonstrates the sector’s proactive approach to future challenges and its determination to safeguard the region’s reputation for excellence.
Source: Vinetur