Tenerife Council to Sell Stake in Bodegas Insulares Following EU Pressure

The Tenerife Island Council (Cabildo de Tenerife) has officially decided to sell its 45.66% stake in Bodegas Insulares de Tenerife (Bitsa). This move ends the council’s 35-year involvement in the winery, a partnership originally formed to help shift the island’s wine industry from bulk production to high-quality, bottled products.

The decision follows pressure from the European Commission. After a complaint from the Association of Winegrowers and Winemakers of the Canary Islands (Avibo), EU regulators warned that the council’s involvement in a private-market business could be seen as unfair state aid. To avoid potential sanctions, the council was required to change its relationship with the winery and ensure it paid market rates for the use of public facilities.

Lope Afonso, Vice President of the Cabildo, stated that the exit is necessary to ensure legal compliance and allow the private sector to take full control of the company. Valentín González, the Councilor for the Primary Sector, added that the council has fulfilled its historical role of professionalizing the industry and providing the necessary infrastructure, meaning its role as a shareholder is no longer required.

Despite the sale, Bitsa’s operations will continue as normal. The company will keep using the Tacoronte winery, which remains council property, under a new lease agreement that costs 94,021 euros per year.

While the council plans to continue supporting the wine sector through training and promotion, the Socialist Group (PSOE) has raised concerns, warning that small winegrowers may be left vulnerable without direct institutional backing.

The vote to sell the shares saw the PSOE abstain, while some councilors with ties to the winery’s board recused themselves. The council emphasized that this is not a sign that it intends to pull out of all business interests; it continues to manage nearly 40 other entities, such as the transport companies Titsa and Metropolitano de Tenerife. The government maintains that those services are strategic public utilities, whereas Bitsa’s commercial wine production is now better suited to private management.