The Freixenet cava giant has requested a temporary employment regulation file (ERTO) due to force majeure that would affect up to 615 people from Freixenet SA and Segura Viudas SAU due to the drought. The mechanism, which must still be authorized by the Department of Business and Labor of the Generalitat and must be negotiated with the unions, has been presented to deal with the drastic reduction in grape production due to the lack of of water that particularly punishes the Penedès area, according to the company’s advance yesterday.
It is the first large company in Catalonia that asks to take advantage of an ERTE due to the persistent drought, which has forced the Generalitat to activate the emergency phase in a large part of the provinces of Barcelona and Girona (239 municipalities and six million of people in total). If approved, the file would be activated from May and would have an impact of between 20% and 50% depending on the area of ??activity. The 60 workers in the commercial area will not be included.
“The intensity will vary depending on the period of the year and the evolution of the causes that motivate it”, stressed Freixenet. The aim, they insist, is to guarantee “the operation of the business and preserve employability to be able to deal with external causes and force majeure caused by the severe drought”.
The grape harvest in the DO Cava for Freixenet has decreased by around 45% -in line with the entire sector-. This unprecedented situation has already forced the group to look for alternative products to cava for some of its main markets, such as Germany. In March, the group announced the launch of a new sparkling wine in Germany, Austria and Switzerland (Freixenet Premium Sparkling Wine – Cuvée de España) due to the impossibility of supplying all demand with cava. This product will be made with Catalan and Spanish grapes (outside the DO Cava), mainly at the UCSA winery, a Freixenet Group company, located in Sant Sadurní. The group plans to start selling this sparkling wine in August and production will depend on market acceptance. This measure will not affect the group’s other markets, such as Spain.
The cava sector in particular and agriculture in general is being particularly affected by the effects of the drought. The DO carries a deficit of 60 million bottles, when normal production hovers around 250 million bottles a year. The lack of product has led it to approve new rules to try to cheat the storm.
Henkell Freixenet, the sparkling wine company of the German group Geschwister Oetker which controls half of Freixenet, recorded a turnover of 1.23 billion euros in 2023, 4.1% more than in 2022. In the communication of results, the co-director general of Henkell Freixenet and vice-president of the Freixenet group, Pere Ferrer, already warned of the “concern” with which they face the current year due to the lack of raw material that has caused the water crisis.
