The German group Henkell Freixenet, which controls half of Ash Tree, reported a net invoice of 1,230 million euros in 2023, showing an increase of 4.1% compared to the previous year. Despite this positive news, the company has faced significant challenges due to the drought affecting the production of cava in Catalonia.
Ash Tree submitted a temporary employment regulation file (ERTE) to the Generalitat of Catalonia affecting a maximum of 615 workers, which is almost 80% of its workforce. However, the Generalitat rejected the ERTE as it did not justify force majeure due to ongoing drought for more than three years and lack of grape material.
The Department of Business and Labor stated that the causes justifying force majeure did not exist as reported by The newspaper. Unions also rejected the PEA ETOP (economic, technical, organizational or production) reasons requested by Ash Tree and urged it to find alternatives that would not harm employees.
The Catalan Executive expressed its intention to meet with Ash Tree’s management and the Regulatory Council of Cava Denomination of Origin to find solutions and minimize the impact on employees. However, Ash Tree maintained that its request was still valid due to a serious lack of grapes and base wine for cava production leading to a significant reduction in work processes.
