Freixenet, one of Spain’s most iconic cava producers, has announced plans to implement a redundancy plan (ERE) that could affect up to 180 employees — approximately 24% of its total workforce.
The decision, disclosed during a meeting with union representatives, will impact staff at both Freixenet SA and Segura Viudas SAU, although commercial operations will remain untouched.
The company, based in Sant Sadurní d'Anoia in the heart of Catalonia’s Penedès region, cited the prolonged drought as the key driver behind this major restructuring. Over the past five years, grape yields in the area have plummeted by 45%, placing enormous pressure on raw material availability and increasing production costs.
Climate Crisis Reaches the Winery Floor
Freixenet's management has described the move as a necessary adjustment to “align the workforce with current production levels.” The company emphasized that the effects of extreme weather and climate change have created a growing gap between market demand and the sustainable capacity of the region’s vineyards.
While the Generalitat (Catalan regional government) officially declared the end of the worst drought in two centuries this past June, Freixenet warns that the aftermath is far from over. Due to the nature of cava production — which requires years of aging from harvest to bottle — the recent rainfall does little to resolve the structural damage caused by years of water scarcity.
“Climate disruptions are creating systemic challenges for the entire sector,” Freixenet stated, signaling that the decision was taken with long-term sustainability in mind.
A Precedent in Workforce Measures
This isn’t the first time Freixenet has had to recalibrate its workforce due to climate-related pressures. In June 2023, the company filed for a temporary layoff plan (ERTE) affecting up to 615 workers. Although initially framed as a measure due to force majeure, the Generalitat rejected this legal basis, and the ERTE was eventually processed under different grounds, lasting until December.
The current plan, however, marks a more permanent and structural change. Unlike the ERTE, which is reversible and often used as a short-term buffer, the proposed ERE will lead to actual job terminations, underscoring the depth of the crisis.
Economic Growth Shadowed by Environmental Limits
Freixenet is part of the Henkell Freixenet group, the world’s largest sparkling wine producer and a subsidiary of Germany’s Geschwister Oetker conglomerate. In 2023, the division recorded revenues of EUR 1.23 billion — a 4.1% increase year-on-year. Despite the strong financial performance, Freixenet’s co-CEO Pere Ferrer had already warned that 2024 would be a difficult year due to the ongoing grape shortage.
Ferrer’s warning has now manifested in a difficult choice: either continue operations at unsustainable costs or reduce capacity to adapt to the realities of climate-disrupted viticulture.
A Sector on the Brink?
So far, Freixenet is the only major cava producer to announce a permanent workforce reduction in response to the drought. However, industry observers suggest that similar announcements may follow if climatic challenges persist. With cava production heavily dependent on stable, high-quality grape harvests, any long-term imbalance could lead to structural transformations within the sector.
The formal start date of the ERE process and the final number of employees affected have not yet been confirmed. Negotiations with unions are expected to begin in the coming days.
Conclusion: A Defining Moment for Spanish Wine
Freixenet’s move could be a bellwether for deeper changes in the Spanish wine industry, as companies confront the tangible costs of climate change. Beyond the economic impact, this case highlights the urgency for adaptation strategies in agriculture-dependent sectors and raises the question: how can traditional wine production survive in an increasingly unpredictable climate?
Source: Vinetur