Extreme Weather Strikes Vineyards in Northwestern Spain

July 8, 2024

A series of extreme weather events continues to wreak havoc on vineyards in Spain, particularly in the northwestern regions of Bierzo and Valdeorras. But what does this mean for wine investors?

On June 25, a storm struck Valtuille de Abajo and surrounding areas, bombarding 500-600 hectares of Bierzo’s prized vineyards with golf ball-sized hailstones. The storm damaged grapes, stripped leaves, and even harmed canes and permanent wood.

This is the second hailstorm in two weeks. On June 18, another storm hit nearby Cacabelos, affecting about 250 hectares of vineyards and extending into the Ourense province, devastating vineyards in DO Valdeorras.

With only two months left until harvest, growers are now seriously concerned about salvaging what seemed to be an excellent vintage. The extensive vine damage may also jeopardize next year’s harvest.

In Bierzo, the worst-hit areas were Valtuille de Abajo and Valtuille de Arriba, home to about half of the DO’s premier vineyards, including the parajes of Villegas, Poulosa, Valdoneje, Telleria, Cabanelas, and Las Gundiñas.

‘In Valtuille, it’s brutal,’ said Nacho León of Demencia Wine. ‘Almost the whole town was affected, about 90%, if not 100%,’ he said.

León added that damage to vine shoots means the storm will affect both the 2024 and 2025 vintages, calling the situation ‘a disaster’.

Nearby villages Pieiros, Villadecanes, Parandones, and Toral de los Vados also saw about 70% of their vines damaged by hail.

Speaking to local newspaper El Diario de León, Carmen Gómez, technical director of DO Bierzo, said she ‘almost cried’ when surveying the affected vineyards. Gómez mentioned that some producers no longer have any fruit to harvest, and for those who do, it may not be worth it to proceed with harvesting.

The storm hit at a delicate time, as vines had recently flowered and grapes were in their early growth stages. These berries are highly susceptible to fungal diseases until veraison, and the current wet conditions and high temperatures increase the risk of downy mildew, black rot, and powdery mildew.

As growers begin recovery efforts, the affected DOs have called for urgent treatment of the vines to heal hail wounds and prevent fungal growth. Bierzo’s wine growers will implement these treatments and hope for better conditions, keeping a wary eye on the sky in anticipation of the fall harvest.

What does this mean for Wine Investors?

An extreme weather crisis affecting vineyards can have significant implications for wine investment:

Reduced Supply: Extreme weather events, such as hailstorms, can severely damage vineyards, leading to a reduced grape harvest. This decrease in supply can drive up the prices of existing wine stocks, particularly for highly sought-after vintages, making them more valuable for investors.

Long-term Impact on Vineyards: Severe weather can cause long-lasting damage to vines, affecting multiple vintages. This can lead to a prolonged period of reduced output and quality from the affected vineyards, which can influence long-term investment prospects in wines from those regions.

Increased Demand for Alternative Regions: As traditional wine regions face the brunt of extreme weather, investors may turn their attention to emerging wine regions that are less affected by such conditions. This shift can lead to increased investment in wines from these alternative regions.

Diversification Strategy: The crisis highlights the importance of diversification in a wine investment portfolio. Investors may seek to diversify their holdings across different regions and types of wine to mitigate the risks associated with localized weather events.

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