The councillor for the Primary Sector of the Cabildo of Tenerife, Valentín González, said this Tuesday that it “made no sense” for the corporation to remain within the company Bodegas Insulares, given that the viticulture subsector is not the same as it was in 1990. The island’s wines now have international prestige, and the marketing structure is “solid.”
The Cabildo of Tenerife decided, last June, to initiate, 35 years after strongly supporting (since February 1990) a wine industry with public investment and control, the administrative process to withdraw its shareholding in the mixed-capital company, known as Bodegas Insulares de Tenerife (BITSA, established in August 1992). This company is the flagship industry for the development of quality wine, under a protected designation of origin (DOP), in Tenerife and the Canary Islands, starting from 1992 with the creation of the first DOP in the archipelago: that of the Tacoronte-Acentejo region.
The new strategy from CC and PP, with the popular party in charge of the Agriculture and Industry areas, entails shedding the Cabildo de Tenerife’s public stake in the aforementioned company, currently mixed or public-private. The insular corporation owns 45.66% of the share capital of Bodegas Insulares de Tenerife, with 4,413 subscribed shares.
During a press conference on July 1, alongside the president of Avibo, Juan Jesús Méndez, he emphasised that the viability of the entity is guaranteed and noted that the share capital they own will remain in the hands of the vineyard owners.
González indicated that the government team launched a “roadmap” at the end of 2023 in response to the European Commission’s threat to sanction Spain for breaching free competition, starting with an update of the usage fee for the regional winery located in Tacoronte, with an annual payment of €94,000.
He noted that the EU “did not understand” that the Cabildo was involved in the production and marketing of wine. Although they supported the decision to invest in the company in 1990 to revitalise the subsector, they have advocated for the corporation to now be “on the sidelines.”
In this context, he explained that the Cabildo’s legal and administrative services “support” the cessation of activity, as their professionalisation is “consolidated” and competitive “normality” must be regained, in line with EU requirements.
Méndez stated that this marks the end of a “very long trajectory of this conflict” as they applauded the measure in 1990 when the Cabildo became a “catalyst and promoter” of the wine industry; however, it “no longer made any sense” now that the subsector is “competitive.”
He pointed out that the Cabildo “competed” with winemakers in purchasing grapes while enjoying facilities “built with public money” without paying fees, thus engaging in “unfair competition” with the assistance of public officials, making it a “comparative grievance.”
In his view, “it was a comparative grievance; we had a wall in front of us and were seen as a threat,” leading them to escalate their complaint to Brussels.
Méndez valued the “decision and courage” of the insular government and criticised the “demagogic” approach taken by the Socialist Group.
He also echoed the councillor in delivering a “message of reassurance” as Bodegas Insulares “is not at risk” and is now “stronger” as it will operate in the “free market, with greater dynamism and capacity for reaction.”
In this vein, he highlighted that vineyard owners “are guaranteed” the sale of grapes and the price, and perceived that the Cabildo will reserve its role to promote the primary sector.
Méndez commented that Tenerife wines are experiencing their “best moment since the 18th century,” positioned in high-end markets such as Japan, California, or major European capitals, with a “very high international prestige,” although he sees climate change adaptation as a threat.
