The prolonged drought in Catalonia has put Freixenet, the world’s leading sparkling wine producer, in a tough spot. The region has been experiencing extreme water shortages for almost three years, with 30-year-old vines dying and grapes withering in important wine-growing areas like Penedès near Barcelona, where Freixenet is based. This has severely impacted the production of their famous Cava sparkling wine, the Spanish answer to Champagne.
In response to the crisis, Freixenet has applied for short-time work in Spain and plans to temporarily lay off almost 80 percent of its workforce. The company’s request is based on “force majeure” and aims to preserve jobs and navigate through the challenging situation. Despite facing difficulties, Henkell Freixenet, the group that Freixenet is part of, reported record revenues in 2023. Market shares grew in certain regions, although sales in North America and Asia declined.
The grape shortage caused by the drought in Spain has impacted cava production significantly. Expectations are that around 80 million bottles of Cava sparkling wine will be lost compared to the previous year’s harvest. However, Freixenet is exploring ways to mitigate the impact of the drought on its operations and making efforts to adapt to changing conditions in the industry. Overall, Freixenet is working hard to ensure its sustainability during this challenging period due to ongoing drought crisis.
