Cava sales decline for a second year running

BarcelonaCava sales declined last year for the second consecutive year, according to a report released Wednesday by the Cava Designation of Origin Regulatory Board. The total number of bottles sold fell by 12.88% year-on-year to 190 million. Revenue reached €2.048 billion, 10% less than in 2014. This drop is attributed to the drought, according to Javier Pagés, president of the Cava DO. "The decline is not due to a lack of demand, but rather a lack of product," he stated. This decrease stems primarily from exports, which fell by 18.68%. In the Spanish market, the reduction was much more moderate, at 2.48% in volume. It should be noted that of the 190 million bottles sold, 60% of the Cava was destined for export. The first market was Belgium, the second the United States, and the third the United Kingdom. Of all the cava sold in Spain, 33.7% was in Catalonia. Germany, traditionally the first or second largest market, fell to fifth place.

For Pagés, the focus on strengthening higher-quality cava is what will help them position themselves in the market. Proof of this is that the bottles that are declining the most are the lowest-priced ones, while those of top guardThe highest quality products grew by 1.41%. If we consider revenue instead of volume, it was €2.048 billion, 10% lower than the previous year.

2023 was the last record-breaking year for Cava sales, and 2024 saw significant declines in both the number of bottles sold and revenue. Two years ago, the drop was 13.2% in total bottles sold and 4.5% in revenue, in addition to last year's decreases, presented today.

Freixenet and relief

The presentation of the results came just a few weeks after Freixenet will become completely owned by the German company HenkellRegarding this, Pagés stated that the winery's situation remains unchanged, because "control of the company was ceded to Henkell a few years ago, and there has been stability." The president of the DO believes that the diversity of companies, from family-owned businesses to "major companies with global distribution power and the capacity to reach many markets, enriches" the sector. In the last two years, Freixenet's management had been reducing the production of bottles labeled as Cava in order to sell a large portion of the production in Germany as "Spanish sparkling wine," but without the DO seal—and the production process requirements. Avoiding the DO allows for the production of sparkling wines in shorter periods (the Cava Regulatory Board requires a minimum of 12 months). Furthermore, the company filed for a workforce reduction plan (ERE) last year, which, after several days of strikes and demonstrations by workers, ended with an agreement between management and the unions. reduce workforcein 154 people, especially with early retirements and voluntary departures.

However, Pagés has assured that he has "no concerns whatsoever" about the fact that Henkell has lines of other types of wines, such as the prosecco,or to produce bottles outside the DO. "Cava is made using the traditional method, and the cava that Henkell makes will be made using the traditional method," he said regarding the German multinational's role. "Any product that doesn't offer a profit margin and wants to be disqualified, welcome. I don't know what they want to do, but Henkell has demonstrated its responsibility over the years," he added.

Another element that has recently affected the sector is the departure of wineries from the DO umbrella, in several cases to join the Penedès sparkling wine brand Corpinnat. Regarding the fact that some wineries are leaving the DO, Pagés responded to ARA's questions by advocating for unity: "I believe the future is here. It always happens in the wine world that some people leave and others return. Ideally, we would have unity. And how do we achieve unity?" Even so, Pagés says he respects those who think differently: "I'm concerned about the entire region, and I'm not saying they aren't, but I don't understand why the effort of so many years and so much accumulated investment isn't being used as a springboard to go further," he pointed out. Finally, when asked how they plan to convince the wineries that have left or are considering leaving, he says he believes that "when people feel the DO isn't useful for selling their product, it's logical that they leave." He adds: "There's little that can be done beyond appealing to the values ​​of the region and unity, which are values ​​that transcend individual values." But you must believe in these values; otherwise, you have to do what they've done, which is to become independent."

Javier Pagés presided for the last time over the presentation of the data, held in Barcelona. The Cava DO is in the process of renewal and will not be running for reelection. While he declined to comment on any potential candidates, he acknowledged that "it's positive that there are people interested." He asked whoever takes the helm for "responsibility and to work for the unity of the sector," adding that "revaluation is the only way forward for Spanish wine." For the president of the Regulatory Council, this is the great challenge, along with climate change and appealing to a changing consumer.