Freixenet announces a collective redundancy plan to lay off 24% of its workforce.

BarcelonaCava giant Freixenet announced this Thursday a redundancy plan (ERE) to reduce its workforce in Spain "by a maximum of 180 employees," representing 24 percent of the group's total workforce in Spain, according to a statement issued by the company itself. Employee sources explain that they were not expecting this decision, which came as a surprise to them in the midst of negotiating a new collective bargaining agreement.

The Catalan cava producer justifies this staff cut "to restructure its production operations," it states in the statement. According to the company, "extreme weather patterns and the long-term consequences of the ongoing multi-year drought in Catalonia" have caused "severe disruptions to the industry." This has led, according to the document, to the cava sector currently facing "an unprecedented crisis" that has led to a decrease in production both in the "sector in general" and at Freixenet in particular, which it notes is the "leading" company in the sector in Spain.

"Reduced reserves and rising raw material costs have exacerbated the mismatch between market demand and operational sustainability," Freixenet adds to the statement. "The fundamental change in market dynamics requires the company to take urgent measures to ensure the sustainable development of the business in the future," the statement says, especially to "address reduced production levels and align operations with market realities." However, the Catalan brand is confident it will "overcome this challenge by being stronger."

The company, based in Sant Sadurní d'Anoia (Alt Penedès), will share the details of the ERE with the works council "through open dialogue when negotiation" of the file begins, it assures. Furthermore, the company affirms that it "approaches this process with a deep awareness of the impact on employees and their families" and with the "willingness" to "manage the necessary changes in the most sensitive way possible, prioritizing support for employees."

Last year Freixenet already announced a temporary employment regulation file (ERTO) due to force majeure which was expected to affect up to 615 workers due to the impact of the lack of water on their production. But at that time, the Generalitat denied it because it considered that the causes were not proven. Finally, the company ended up applying another ERTO using other arguments, which ended at the end of 2024.

For its part, the union Comisiones Obreras has described the ERE as "a totally unfair and unacceptable measure for the people who support the company with their daily efforts." In a statement, the organization demanded that the company "reverse its intentions and sit down to negotiate" with staff representatives to agree on "the appropriate measures to address the current situation in the sector, safeguarding jobs."

The cava giant

Freixenet is the leading company in terms of bottle volume and turnover in the Cava Designation of Origin, far ahead of its direct competitor, Codorníu. In 2023 closed the year with revenues of 1.23 billion €1.5 billion, thanks mainly to improved sales of sparkling wines and spirits, despite the decline in still wines. The significant expansion in sales was concentrated in German-speaking countries. The company has not yet announced its results for 2024.

In 2018, Freixenet, traditionally controlled by the Ferrer and Bonet families, invested in the wine company Henkell (a subsidiary of the German multinational food company Geschwister Oetker), which acquired a majority stake of 50.7% for approximately €22. This placed the resulting group's market share in the global wine sector above 9%. Since then, Freixenet has been co-managed by two co-CEOs, the Catalan Pere Ferrer and the German Andreas Brokemper.

Currently, in addition to its own-brand wines, the group controls a number of Spanish brands such as Segura Viudas, Canals Nubiola, Castellblanc and René Barbier, as well as wineries in other countries, especially in Germany but also in France and Italy, where it owns Mionetto, the leading brand of the Prosecco.

The announcement of the ERE also comes just over four months after the death, at the age of 99, of Josep Ferrer, who led the company founded by his parents and was the architect of its expansion first on a Spanish scale, and then globally, to the point where it became the leading exporter of sparkling wines in the country and one of its pillars.