Freixenet cuts 615 jobs as Catalan cava struggles

Freixenet cuts 615 jobs as Catalan cava struggles

Cava producer Freixenet, owned by German group Henkell for years, has filed a collective dismissal procedure affecting 615 employees. The company attributes this to drought and declining sales. The announcement has reignited debate in the Economy subforum, mixing Catalan politics, product boycotts, and the harsh reality of an industry that has changed.

Why is Freixenet cutting 615 jobs?

Drought is the official reason. The company communicated it as the main cause, and much of the sector accepts it: water scarcity in Peine affects grapes and raises production costs. However, the cuts coincide with a sales collapse not explained solely by weather. Cava has lost ground to other sparkling wines, and casual consumers now have more options than ever.

Some argue it is a product issue. Freixenet’s low-end cavas are perceived as mediocre, and regular customers have moved to smaller wineries offering better quality for slightly higher prices. Drought was the trigger, not the sole cause.

The boycott of Catalan cava and its real effect

Part of consumption has turned cava into an object of political punishment. The boycott against Catalan brands, driven by Spanish nationalist sectors, has had a hard-to-measure but real impact on hospitality and private purchases. Freixenet, however, is not exactly an pro-independence company: its former owners were declared Spanish nationalists, and its current owner is German.

That did not prevent the boycott from targeting the brand. The result is a paradox: punishing a company that never supported the independence process while harming workers in Sant Sadurní who are innocent of politics.

The domino effect in Peine

The cuts do not stay within Freixenet’s staff. Local grape growers prepare to sell their harvest at lower prices or not sell it at all. Shops in Sant Sadurní and surrounding areas will see sales drop. Workshops, hardware stores, restaurants, and even local real estate will feel the contraction.

The full calculation, including indirect effects on the region, yields a frightening figure. It is not just about cava: glass comes from Alicante, cork from Cádiz, and labeling is done outside Catalonia. The decline drags suppliers across half of Spain.

Drought as an excuse

Drought exists, but it does not alone explain a layoff plan for 615 people. The sector had been operating with tight margins and growing competition from Valencian, Extremaduran, and other regional sparkling wines for years. Drought was the final blow, not the disease.

Some see the announcement as settling scores with the narrative: if Catalan cava sells less, blame falls on the boycott and drought, never on quality. It is a convenient way to avoid looking at the product itself.

The uncertain future of Catalan cava

Freixenet has not detailed whether there will be further cuts. The company stated that in May they did not expect to reach the Christmas campaign, indicating the magnitude of the problem. The Catalan cava sector faces a restructuring that may leave out the weakest players.

Meanwhile, affected workers await a layoff plan that leaves them unemployed in a region with few alternatives. Politics and climate have joined forces to dim the lights of cava in Sant Sadurní. And no one knows when it will shine again.