BARCELONA (SPAIN) – Spain’s 1.2 billion-euro ($1.46 billion) Cava wine sector is bracing for a devastating year as bars and restaurants in many parts of the country remaining shut for months and tourism shrivelling because of lack of visitors due to the pandemic.
However, earlier predictions of an up to 40% dip in sales have been overly pessimistic with producers of the beverage hoping that year-end holidays to further minimise the impact on the industry led by brands such as Freixenet and Codorniu.
Sales decline has hovered around 10% because of geographically-diversified exports and bourgeoning online trade.
“No one desires a fall, but I’d even say it’s a pretty good result considering the context,” Cava Regulatory Board Chairman Javier Pages said.
Made in the region of Catalonia, shipments of cava dropped 10.5% in January-September from a year ago and there was a steeper dip in domestic demand of 7%, said Pages, who hopes that numbers will improve during the season. Christmas and New Year are the best times for cava sales.
Pages said that sales could improve even if there is a 10-people cap on gatherings per household and corporate parties remaining cancelled.
Damia Deas, chairman of AECAVA business group representing 90% of the sector’s revenue and manager of the Vilarnau brand, had predicted in May that sales could drop between 25% and 40% this year from the 250 million bottles exported the previous year.
“No doubt, it’s a terrible year…We had prepared for the worst but our sector has been able to resist a bit better than we thought thanks to exports,” said Deas.
He said a quarter of more than 200 producers have employees under furlough, adding that those who export less are more affected compared with others.