The decision was taken by the Cabildo of Tenerife, led by Rosa Dávila of CC, in collaboration with the PP. The head of the insular Primary Sector area, Valentín González, is a member of the Popular Party. The decision was made during the Commission of Island Government on December 29 to cancel the administrative concession of the agro-industrial facilities of Bodega Insular de Tacoronte, which is entirely owned by the Cabildo, to the mixed company called Bodegas Insulares de Tenerife, SA (BITSA). The Cabildo currently controls 45.66% of its share capital, but the majority of the shares are privately owned.
The agreement means “not extending the period established for the use of the facilities of the Bodega Insular de Tacoronte, property of this insular Corporation, by the entity Bodegas Insulares de Tenerife, SA, for the management of the economic activity of production, bottling and sale of wine from the Tacoronte-Acentejo wine region, by virtue of what was adopted by the Island Government Council on November 7, 2005” and other subsequent agreements. The last approved 10-year extension was granted on June 28, 2014, until December 31, 2023.
The agreement grants the commercial entity, also from the Island Council, “a period of nine months to continue the economic activity” in order not to cause harm to the wine sector of the region. This means that the 2024 grape harvesting campaign can be carried out, but the complete winemaking process may not be permitted.
The decision leaves the immediate future of hundreds of wine grape farmers in the Tacoronte-Acentejo region uncertain. This region has the protected designation of origin (DOP) Tacoronte-Acentejo, the first in the entire Canary Islands, established in 1992. The decision also impacts other areas of Tenerife and the archipelago, where the processing company, with the approval of the Cabildo, has opened the possibility of marketing wines with PDO Canary Islands, which implies that grapes certified within other island DOP can be purchased from winegrowers to make wines with that other quality back label.
The first blow occurred when the Competition services of the European Commission received a complaint for alleged unfair competition by the mixed company, heavily supported with public money from the Cabildo, and issued an ultimatum to the insular Corporation.
On March 25, 2022, the Directorate General of Competition of the European Commission, after receiving the complaint, “issues a report in which it invites the Spanish authorities to modify the existing contract between the Cabildo of Tenerife and BITSA, in order to establish a real annual fee to be paid by the latter entity to the insular Corporation” to avoid opening a formal procedure against the Kingdom of Spain.
After this formal communication, the Cabildo sets to the task to specify that the fair fee that the BITSA mixed company must pay from now on has to reach the annual amount of 159,477 euros, 6% of the value of the total assets, which the company is notified on December 12, 2023.
Then, on December 26, 2023, the document signed by the representative of the entity Bodegas Insulares de Tenerife is presented at the request of the Cabildo, in which the Corporation is informed of “the desire to extend the aforementioned management contract” for ten more years, but nothing is said about accepting payment of the fee. With almost no time
The socialist opposition in the Government Council of Tenerife sees the closure of Bodegas Insulares de Tenerife as an “assault”
The socialist group in the Government Council of Tenerife has condemned the decision to close Bodegas Insulares de Tenerife, describing it as a “serious outrage” and warning that it will lead to the ruin of more than 300 winegrowers and the disappearance of historical references of quality wine in the Canary Islands. Brands such as Viña Norte and Brezal, both covered by the Tacoronte-Acentejo DOP, are at risk.
In response to the urgency of the situation, the PSOE in the Government Council has requested the appearance of the insular counselor of the Primary Sector, Valentín González, to explain the reasons for the decision and the options it will provide to producers. The socialist group also claims that the decision goes against the agreement of the board of directors of the entity, of which the Government Council of Tenerife is the majority shareholder with 45.66% of the total shares.
According to the socialist counselor Javier Parrilla, the closure signifies “the destruction of the wine production fabric of the Tacoronte-Acentejo region in the short term, immediate abandonment of land, and a betrayal of Tenerife viticulture.” It is also noted that the Government Council of Tenerife did not inform the Wine Board of its decision or its future plans.
The official agreement was adopted on December 29, without informing the media, and states that “the period established for the use of the facilities of the Insular Winery of Tacoronte by the entity Bodegas Insulares de Tenerife, SA will not be extended.”
