Castile and León will prepare a plan to internationalize its wine industry

The regional government of Castile and León said on Friday, November 6, that it will prepare a specific plan to help internationalize its wine industry and will continue supporting investment in wineries, as the sector faces weaker sales and lower grape prices.

Joaquín Antonio Pino, the region’s agriculture, livestock, rural affairs and environmental policy minister, announced the measures during an appearance before the Economy and Finance Committee, where he outlined his department’s budget plans for the coming fiscal year. He said the government wants to strengthen promotion abroad, open new markets and improve long-term planning in a wine industry that he described as going through a difficult period.

Pino said the regional administration has awarded 10.02 million euros for investments in wineries and has also launched a program to promote wine in countries outside the European Union. He said Castile and León starts from what he called a leading position in foreign promotion among Spain’s autonomous regions. For the 2026/2027 period, he said, the region has 105 external promotion programs with 18.73 million euros in eligible spending and 11.24 million euros in subsidies.

The minister said the wine sector is dealing with problems moving production into the market and with downward pressure on grape prices. He also linked the strain to shifts in consumer habits and to what he described as weak planning in earlier years, when vineyard area expanded without a matching increase in commercial capacity. For that reason, he said the government sees promotion, internationalization and access to new markets as priorities, along with better production planning to avoid future imbalances between wine supply and demand.

The announcement is significant for the broader drinks business because Castile and León is an important wine-producing region in Spain, and stronger export support and winery investment could help producers diversify sales channels at a time when domestic demand and pricing are under pressure. If the measures lead to broader market access, they could ease some of the strain on wineries that have been facing slower sales and tighter margins.

Pino also said the regional agriculture department has backed studies on grape production costs in different wine appellations. He said the goal is to bring more transparency to the supply chain and help ensure that prices paid to growers cover production costs. That issue has become more sensitive as growers and wineries deal with lower market prices while operating expenses remain high.

In addition to direct support for the wine industry, Pino said the regional government will use a larger budget through the Technological Institute of Agriculture of Castile and León, known as ITACyL, to support differentiated quality products and the Tierra de Sabor brand. He said wine is considered a strategic product within that effort. He also called for stronger promotion of wine culture and wine tourism through certified Wine Routes, presenting enotourism as another way to support the sector’s value chain.

On the production side, Pino said the regional government will keep pressing Spain’s state agricultural insurance agency, ENESA, to provide broader coverage for risks that he said are not being addressed adequately. He specifically cited downy mildew in vineyards as one of the threats that needs a stronger insurance response.