The Cava powerhouse has been compelled to seek alternatives to meet demand in key export markets as Penedès faces an extreme water shortage.
A European Drought Observatory map highlights the Spanish Mediterranean coast in orange and red, indicating severe drought. According to a study published in Nature Geoscience, this is the most severe dry spell the Iberian Peninsula has faced in the last 1,200 years. The lack of rainfall has created an unprecedented crisis in the Penedès region, responsible for around 95% of DO Cava production. Last year, some growers lost nearly 70% of their harvests, and this year, more vines are at risk of dying from thirst.
State of Emergency
In February, Catalonia declared a state of emergency affecting six million people in Barcelona and 201 surrounding towns. Restrictions have been placed on everything from garden watering to beach showers, with hefty fines for non-compliance. Even street cleaning in Barcelona has been minimized. The Catalonian government has announced plans to send desalinated water from Valencia to Barcelona as an interim solution.
The restrictions also mandate an 80% reduction in water for crop irrigation, threatening winegrowers already struggling with the lack of rain. Speaking to Catalonian daily La Vanguardia, Jaume Domènech of the agricultural union Joves Agricultors i Ramaders de Catalunya (JARC) warned that a third of the vines in Alt and Baix Penedès may not bud this year. The drought is expected to reduce production by 60 million bottles.
Struggle to Meet Demand
The drought has severely impacted one of Cava’s biggest brands. Freixenet, a leading Cava producer, has been forced to produce a declassified sparkling wine for markets in Germany, Switzerland, and Austria due to the shortage of DO Cava grapes. ‘Freixenet Premium Sparkling Wine – Cuvée de España’ will be made using the Charmat method instead of the Traditional Method and will debut in August 2024. Josep Palau, production director at Freixenet, told business daily El Economista that "the sharp decrease in [grapes harvested] will have a massive impact on all markets in the world since this serious situation is not expected to be reversed in the short term."
This crisis follows a record year for DO Cava, with nearly 252 million bottles sold, 2.7 million more than in 2022, and increases in Cava sales both domestically and in key international markets. Spain accounts for 79% of Cava sales by value. The primary export markets by volume are Germany, the United States, Belgium, and the United Kingdom, which rounded out Cava exports in fourth place with 16.8 million bottles in 2023.
With more frequent droughts expected in the coming years, DO Cava will need to manage stocks carefully to meet increasing demand. The Cava regulatory council is currently studying extraordinary measures to allow wineries to keep reserves of base wine for up to three years, enabling them to produce new Cava in "bad years." These exemptions would apply only to Cava de Guarda, the category with the shortest ageing and highest volume. DO Cava’s president, Javier Pagés, assured that any measures taken would not affect the premium Cava de Guarda Superior categories (Reserva, Gran Reserva, and Paraje Calificado).
Source: Decanter