Henkell Freixenet workers in Spain began a four day strike yesterday (27 May) in reaction to planned layoffs of almost a quarter of its staff.
The company announced plans last month to cut headcount, pointing to “existential challenges” stemming from “extreme climatic conditions” affecting the Catalonia region.
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Jobs affected are in production operations at the Cava maker’s Freixenet, based in Sant Sadurní d’Anoia and Segura Viudas located in Torrelavit near Barcelona.
The conditions “have created severe disruptions across the industry, pushing the Cava sector into an unprecedented crisis”, the business said in its statement last month, adding “Cava production has decreased significantly across the industry.”
Local union Comisiones Obreras (CCOO) said it had called “the entire workforce” to take part in the walkout “in defense of jobs at Freixenet and Segura Viudas”, which commenced yesterday evening. They will end on Friday (30 May).
When asked whether the strikes would continue for longer than the four days, the CCOO told Just Drinks that it could go on “if the company doesn’t start bargaining”.
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By GlobalDataSpeaking to Just Drinks, Henkell Freixenet said it “respects the workers’ right to protest” and highlighted difficult growing conditions.
“As we seek solutions to the existential challenges posed by Catalonia’s multi-year drought, we are engaging with the workers’ legal representatives to seek a constructive way forward,” it added.
The company said since 2022, Cava grape harvests have declined by 45% in the Penedès area of Catalonia, while raw material costs have increased.
“This combination has created a profound mismatch between what the market demands and what we can actually produce, putting the long-term viability of our business at risk,” it said.
Henkell Freixenet had sought to furlough roughly 80% of staff – or some 615 workers – in April 2024, as drought conditions the Penedès area. However, the following month, Spain’s Catalan government rejected the company’s “force majeure” reasoning for the worker stoppage.
According to data from the Regulatory Board of the DO Cava and consumer research group Circana, total sector sales volumes fell 13.4% last year compared with 2023, reaching 218 million bottles.
Of these, 78 million were sold in Spain, reflecting a 3.6% decline, while 140 million were exported, representing an 18.1% decrease in international sales.
Henkell Freixenet was formed in 2018 following Henkell & Co.’s purchase of a majority stake in Spanish Cava producer Freixenet.
Freixenet’s portfolio includes Cava brands Segura Viudas and Freixenet as well as Mionetto, Henkell, Alfred Gratien, Schloss Johannisberg and Mangaroca Batida.
