Cava sales online skyrocket 45%

The cava sector is used to facing adverse years and overcoming all kinds of difficulties. The pandemic has dealt a new blow to producers who, even so, positively value the results achieved during this fateful 2020, as their sales have dropped, only, by 13.62%. The closure of the restaurant sector and the disappearance of tourism on a global scale could have taken a much higher toll on cava producers, who consider this 13.62% decrease a clear "sign of resilience" in the face of the pandemic's impact.

In total, the 209 cava-producing companies, most of them located in Penedès, commercialized 215.5 million bottles during 2020. This represents a 13.62% decrease compared to the 249.5 million bottles commercialized in 2019, a record year in terms of volume, as it was the second best in cava's history, after 2017, with a record 252.5 million.

71% of all cava commercialized was exported, a percentage significantly higher than the 66% share that exports had in 2019, which consolidates DO Cava as the Spanish designation of origin that exports the most. Specifically, 152 million bottles were sold in the international market, representing a 7.92% drop compared to the 165 million exported a year earlier. "The diversification of markets that cava has is a richness, a very valuable goodwill that has proven to be a mitigating factor for the fall in the domestic market, more affected by the pandemic," explained the president of the Cava Regulatory Council, Javier Pagès.

According to the head of the DO, "2020 has been a very challenging, difficult, and atypical year," but he admits that the results "have exceeded initial expectations" thanks to the sector's "effort, work, and tenacity."

If the total shipments (215 million bottles) are reduced by the exported volume (152 million), 63 million bottles remain, which would correspond to consumption in the Spanish market, representing a 25% decrease. The DO Cava, however, states that according to market consultant Nielsen, the decline would be 12.3%. The channel most impacted by Covid would be hospitality, with a 38.8% drop. The decrease in supermarkets is much lower, which Nielsen estimates at 4.7%.

As has happened with most sectors, the positive data for this pandemic year is the increase in online commerce. Specifically, cava sales online have grown by 44.9%, as many wineries until now did not sell their products online and started from very small bases. The population lockdown forced cava producers to react and set up virtual stores to stay in contact with their customers. It remains to be seen now how this new sales channel evolves and consolidates.

Returning to the international market, Germany continues to be the main destination for cava exports, followed by the United Kingdom, Belgium, the United States, and Japan. Except for the United Kingdom (where an increase of +6.5% was registered due to pre-Brexit stockpiling), shipments have fallen in all these major markets. On the contrary, they have grown by double digits in countries where volumes are much smaller, such as Russia, Finland, Sweden, and Lithuania, which shows that cava continues to extend its international presence ---reaching more than one hundred countries--- thanks to its quality-price ratio.

Beyond the figures on commercialized volumes, the DO Cava is now focused on implementing the strategic plan that the regulatory council approved last summer, which involves introducing a new zoning system starting this year (to better indicate the origin) and segmentation of cava, in addition to increasing control and traceability systems to guarantee quality. Thus, from now on, young cavas (190 million bottles last year) will be called cavas de guarda and cavas aged for more than 18 months will be called cavas de guarda superior (25 million bottles). Until now, reserva cavas had to have a minimum of 15 months, but now the requirement is raised to 18 months.

In parallel, four large zones have been created within Spain to better identify the origin of cava: Comtats de Barcelona (with sub-zones: Valls d'Anoia-Foix; Serra de mar; Conca del Gaia; Serra de Prades and Pla de Ponent), Valle del Ebro (with sub-zones: Alto Ebro and Valle del Cierzo), Viñedos de Almendralejo ---for cava produced in Extremadura--- and Altos de Levante ---for that from the Valencian Community---.