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 (DO) 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. The decline was primarily concentrated in exports, which fell by 18.68%. In the Spanish market, the drop was much more moderate, at 2.48% in volume. It should be noted that of the 190 million bottles sold, 60% were 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, Catalonia consumed 33.7%. 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 cavas saw a 1.41% increase. However, revenue, instead of volume, reached €2.048 billion, 10% lower than the previous year. 2023 was the last record 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 the decreases from last year, presented today. Freixenet and relief

The results are being presented just a few weeks ago. Freixenet became completely owned by the German company Henkel.In this regard, Pagés stated that the winery's situation remains unchanged, because "control of the company was ceded to Henkel a few years ago, and there has been stability." For the president of the DO (Designation of Origin), 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 the staff, ended with an agreement between management and the unions. reduce the workforce by 154 people, especially with early retirements and voluntary departures.

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

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 seeking re-election. While he declined to comment on any potential candidates, he acknowledged that "it's positive that there are people interested." He asked whoever takes over for "responsibility and to work for the unity of the sector," and added 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.