Tenerife Winery Properties Transition: Icod Site Becomes Firefighting Hub, Others Aid Agriculture

The old winery in Icod de los Vinos is set to become a new base for forest fire fighting in the northern part of Tenerife. This is part of a larger handover of three properties from Bodegas Insulares SA to the island government, starting December 2nd. The other two sites, the former Bodegas Bilma in Chío and part of the main headquarters in Tacoronte, will be used for the primary sector. The island's Minister for Natural Environment, Blanca Pérez, and Director of the Environment, Pedro Millán, aim to spread out these operational centers while keeping the Santiago Martín Pavilion as the main hub.

The Icod de los Vinos winery, located on Cueva del Rey road, spans 4,836 square meters. It includes a two-story building with bottling facilities and offices, and an underground area that housed the winery.

The property in Chío, Guía de Isora, will also go to the Natural Environment department, though it requires more extensive work. Previously Bodegas Bilma, it was considered for a visitor center for Teide National Park due to its proximity. A draft plan for the park also suggests it as a bus parking and shuttle starting point, potentially becoming a park-and-ride facility in the future.

The Guía de Isora winery, in the Cherevique area, covers 445 square meters and includes two buildings for offices, a wine exhibition space, and the winery itself. The rest of the site has parking, restrooms, and other facilities.

The Tacoronte premises, part of Bodegas Insulares' central facilities, will be managed by the Primary Sector from December 2nd. Councilor Valentín González stated that this depends on the Cabildo's complete withdrawal from Bodegas Insulares, which involves financial settlements. He mentioned that these facilities could eventually support Tenerife's wine industry.

Last June, the Cabildo decided to sell its stake in Bodegas Insulares de Tenerife (Bitsa) to end a public-private management model established in 1992. This move was prompted by the threat of a fine from the European Union, which had warned Spain since 2022 about potential unfair competition. The Cabildo is withdrawing because its oversight is no longer needed as it was in the 1990s, but the main driver is the European Commission's concerns about illegal state aid.

Bodegas Insulares, which works with about 600 producers, will continue its wine production, bottling, and sales. The Cabildo's withdrawal was approved by the governing parties (CC, PP, and Vox) with eight votes against (PSOE). Several councilors were absent due to their roles on Bodegas Insulares' board.

By withdrawing from Bodegas Insulares, the Cabildo avoids paying at least 13 million euros to the company and potentially to the EU. This is a conservative estimate of the costs associated with a long-standing dispute. Francisco Doblas González de Aledo, a lawyer for the Association of Winegrowers and Wineries of the Canary Islands (Avibo), provided this figure. Avibo had reported the Cabildo's involvement in Bitsa to the EU in 2014 for unfair competition and illegal state aid. Doblas noted that this 13 million euros covers only the repayment of undue aid, and potential fines would have been additional.

Some sources estimate the total cost could be nearly 40 million euros, without interest, due to the European Commission's investigation into the Cabildo's competition violations. The Commission had already deemed the Cabildo's public support for Bitsa as "illegal" and "incompatible" with competition rules in 2018, under previous administrations.