Spain is world’s biggest wine exporter but why does it sell its vino so cheap?

Spain has yet again beaten Italy and France to remain the world’s biggest exporter of wine exporting a whopping 22.8 million hectolitres.

Spain is world’s biggest wine exporter but why does it sell its vino so cheap?
Photo: AFP

Seems like great news for Spanish winemakers, right?

Wrong. Because Spain is selling off its plonk cheap: at less than half the price of Italian and a quarter of the price demanded for French produce.

READ: Ten facts you probably didn't know about Spanish wine

Photo: LexnGer/Flickr

According to the latest data published by the Spanish wine market observatory (Observatorio Español de los Mercados del Vino – OEMV), wine exports peaked at 22.8 million hectolitres during 2017, putting the nation far ahead of its competitors Italy (21 million hectolitres) and France (15 million hectolitres).

But this represented only €2,8 billion in sales for Spain, while Italy’s wine export brought €6 billion and France more than tripled Spain’s with value sales of €9 billion.

Spain’s average price per litre of wine currently stands at €1.25, while French wine commands €6 per litre and Italian wine €2.78.

The problem lies in the fact that the majority of Spanish wine destined for export is sold in bulk (12.6 million hectolitres in 2017 compared to 10.2 million hectolitres of bottled wines)

France is the biggest buyer of Spanish wines, purchasing it cheap in bulk then rebottling it and selling it on at a higher price as ‘vin table’.

Photo: AFP

In terms of vineyard area, Spain has the highest amount in the world – almost one million hectares (2.4 million acres) but manycooperatives sell their wine in bulk as it’s quicker and easier than having to bottle it, market, and distribute it themselves.

Spain was also late to the international market.

“Both France and Italy have a much better international presence, they have more experience in marketing their products and have been exporting for much longer than Spanish producers,” explained Nairy Chaglasyan, who worked in exports for one of Spain’s leading wine producers.

But the recent figures do show that demand for Spanish wine is booming in China, which has climbed up the ranking to become Spain’s fifth largest wine market.

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France, Germany, the United Kingdom, Italy and Portugal, account for 90 percent of exports of Spanish wine but last year saw a 48 percent increase on the year before of wine exported to China.

Despite the cheap bulk wine flowing abroad, Spain still maintains a good reputation for its bottled wine.

“The average (quality) of Spanish wines packed in many of the final consumer markets is a reasonably good average,” said Rafael del Rey, general manager of the OEMV.

Bottle of Spain at a tasting in the USA: Photo: AFP


Uphill battle: Spain’s wine growers forced to adapt to climate change

For over a century, Joaquin Gay de Montella Estany's family produced wine in Spain's Mediterranean region of Catalonia, but the effects of climate change have pushed them to seek higher ground.

Uphill battle: Spain's wine growers forced to adapt to climate change
Over the past 60 years, average temperatures in Spain have risen by 1.3 degrees Celsius, forcing Spanish wine producers to adapt. Photo: Josep Lago/AFP

Now their Torre del Veguer winery also has vineyards at the foot of the Pyrenees mountains — at an altitude of nearly 1,200 metres (3,900 feet) — where temperatures are cooler.

It’s one of the ways in which Spain’s wine producers are trying to adapt, as a warmer climate advances the harvest season and makes the need for more heat-tolerant grape varieties greater.

In searing August heat, farm workers pick the white grapes by hand at a vineyard with sea views in Penedes, about 40 kilometres (25 miles) south of the city of Barcelona.

Higher temperatures have brought the grape harvest forward by 10 to 15 days over the past decade, said Gay de Montella Estany, who owns the ecological winery.

“We have to harvest at the start of August when the heat is the most intense,” he told AFP.

So in 2008, the company moved part of its production to Bolvir, a village in the Pyrenees near the French border.

Speedy ripening

With a total of 961,000 hectares (2.4 million acres) of vines, Spain has the largest area of vineyards in the world, the International Organisation of Vine and Wine says.

It is the third biggest wine producer behind Italy and France.

Over the past 60 years, average temperatures in Spain have risen by 1.3 degrees Celsius, according to the national weather office, Aemet.

And wine producers have seen an impact, as the timing of the harvest is crucial.

An employee tends to the grapevines at the Torres vineyard at a 950-metre altitude in Tremp near Lleida in the Catalan Pyrenees. 

Higher average temperatures speed up the ripening of the grapes, which leads to lower acidity and increased sugars in the fruit.

This yields higher alcohol levels in the wine and also alters other compounds in grapes that affect aroma and flavour.

Grapes must be picked quickly to avoid an excessive alcohol content.

“Essentially these grapes have not fully ripened in the right way,” said Fernando Zamora, a professor in the oenology department at Rovira I Virgili University in Tarragona.


The Familia Torres winery, one of Spain’s largest producers, embraced higher elevation more than 20 years ago, despite facing scepticism at the time.

The company, which has grown from a small family business in the late 19th century, began planting grapes in Tremp, 160 kilometres northeast of its Vilafranca de Penedes base, in 1998.

Grapes for making wine had never been grown before at higher altitudes in this region in the foothills of the Pyrenees.

“Farmers in the area thought it was absurd. They thought grapes would not mature,” said Xavier Admella, who is in charge of the farm located at an altitude of 950 metres.

“Climate change has proven us right,” he added, as workers set up nets to protect the vines from hail which is much more common along mountain ranges.

Ancient grape varieties are treated in vitro at the Torres vineyard lab in Vilafranca del Penedes near Barcelona.

New techniques

In Tremp, temperatures are almost 10 degrees Celsius cooler than at sea level, Miguel A. Torres, president of the Familia Torres winery, said.

That makes it possible to grow grape varieties to produce white wines “that still have very good acidity levels”, he added.

The company, which exports to 150 countries, also has a laboratory where it revives grape strains that have almost disappeared.

One of them which performs well at high altitudes has already been planted in Tremp.

But the fight to adapt has a stiff price tag.

“The future is complicated,” Torres said, adding the wine sector had asked for aid from both the Spanish government and European Union.

Gay de Montella Estany agrees.

He predicts that Spain’s wine sector will have to go on planting at higher altitudes and “look for grape varieties that ripen later” to survive.

He does not rule out that some parts of the country, especially in the south, will one day no longer be suitable for wine production.

Not everyone is as pessimistic, though.

“Climate change is leading many wineries to get their act together and learn how to make wine, not like our grandparents did, but by looking for new techniques,” university professor Zamora said.

“And wines are now much better than they were a few years ago.”