linked in facebook twitter rss

  • Interbrand
  • Brandchannel

your chance!
your chance!
Also of interest...
 
 
 
 

 

  Cava Uncorked: Sparkling Interest Abroad   Cava Uncorked: Sparkling Interest Abroad  Joe Ray  
         
 
Cava Uncorked: Sparkling Interest Abroad Spain's sparkling Cava is adored in its home country because it combines daily consumption habits into a celebration. The bubbly is beginning to get similar traction around the world. Though the Cava export market is dominated by companies like Freixenet and Codorníu, other producers are figuring out methods to export this bottled happiness.

It seems to be a near given that bartenders and Cava producers would have some sort of sunshine-filled reason copied straight from a cheap Champagne ad on why the drink would be so loved in its home country.

Au contraire.

It turns out that people here are rather pragmatic about their drink of choice.

What's the secret? Price.

In Spain (particularly in the Catalan region where most Cava is produced and consumed), the bubbly seems to run through the locals' veins. (Selling for about two dollars a glass in a café, that becomes a distinct possibility.) At many tapas bars, it's easy to get a sense of the "everyday" quality of the drink, as glasses are ordered as often as beer or wine. It also retains a cachet that causes heads to turn when a bottle is opened.

 
At Barcelona tapas bar Quimet & Quimet, owner Quim Pérez agrees. "Who drinks Champagne? People who have lots of money. Who drinks Cava? Everyone!"

"There are a lot of people in Spain who have never tasted Champagne," he adds, clearly a bit proud of his countrymen, but also happy with the progress of the country's own winemaking. "In the last ten years, people have begun to make some really outstanding Cava."

He also agrees that price is the key. "People know there's a difference between Cava and Champagne." Cava tends to be a lot less sweet, for example. "And" he continues, "Champagne is excellent, but the biggest difference is price."

For some smaller producers, cracking the market is all about bang for the buck, particularly when it comes to exporting.

"It used to be that everything that was good here was imported. It was cooler to get Champagne when you brought a girl out," says Jaume Gramona, the director of Cava and wine producer Gramona S.A. "That's not the case anymore."

"Now, you can buy a couple bottles of good Cava for the price of one good bottle of Champagne," he says.

The drink does so well here, in fact, that it has effectively reduced the Spanish sparkling wine market to two drinks. Other bubbly offerings such as French crémants or Italian spumantes are nowhere to be found.

Sure, Spaniards are willing to sell Champagne to anyone who wants to shell out anywhere between US$ 25 and $200 (and up) for a bottle, but with Cava as an option, most consumers seem to ask, "Why bother?"

"Price for price, the terrain is much more pitched in Catalans' favor," says Gramona.

This "low price, good quality" mantra has been the key to the success of Cava around the world. According to the Spanish Institute for Foreign Trade, Cava alone accounted for 7.4 percent of all wines exported from Spain in 2004. Three countries buy up the lion's share of the Cava exports: Germany, the United Kingdom and the United States, which buy 40.2, 21.5 and 13 percent, respectively.

If Germany is any sort of bellwether, thoughts of any significant price hikes should be reconsidered.

 
"The day Cava starts costing more there, we're in trouble," Gramona says about exports to Germany, but there's also a sense that this could be applied around the world.

Where smaller producers have more room to maneuver, especially in the United States, is with value. Wine-wise, Americans look for the most bang (or in this case, "pop") for their buck, which is one of Gramona's strong suits. The company also picked up on Americans' willingness to fork over larger sums of money as long as the value is high.

When Gramona chose to go into the American market three years ago, its research on Spanish wines and Cavas wasn't all roses.

"The Spanish Cava and wine market in the United States was going down three years ago," says Gramona's marketing director, Montse Alonso. "We noticed that though still wines were selling less, their value was going up."

The population, she surmised, was looking for something good, not something cheap. "When people know about wine, they spend a lot of money on it," she says.

The idea she brought back to Spain was to sell some of Gramona's best stuff to the United States, not their base or middle-of-the-road-offerings, like most other Cava exporters were doing. It's one thing to buy cheap sparkling wine and get what you pay for, but it's much more impressive when you pay $30 and have your socks knocked off.

It hasn't been easy. "It's frustrating," says Alonso. "There are some wineries in Catalonia that are exporting some of their worst stuff and it casts a negative image." So for the last few years, Alonso has been living out of a suitcase in the United States for four months a year, to get the word out. "People who work with wine have heard about it, but most people just don't know."

For Gramona, cracking the market is a feat Alonso chalks up to what she terms "crazy traveling."

"I go about two times a year for two months to show people what we do and introduce them to Cava," she says. "Sometimes it's two cities in a day."

"It was hard to do, because we made more money selling the same wine in Spain," she says, but the idea paid off. Three years after entering the US market, eight percent of Gramona's exports now go to America.

Little by little, Cava is carving out a niche that's not based on price alone, and this is especially felt at Cava maker Albet i Noya, which exports to 23 countries.

"The difficulty used to be in the price range," says export manager Josep Jové. "There are huge brands like Freixenet and Codorníu which tended to price things lower," but along with Gramona, Albet i Noya has found its niche by providing wines of excellent value.

Jové is also happy to see that at least a few people are catching on to what Cava is in the United States. "I promote it as a high-quality sparkling wine," he says. "I don't want to give people the idea that it's a Champagne substitute."     

[19-Dec-2005]

 
  
  

Joe Ray is a Paris-based freelance journalist specializing in food and wine. He can be contacted via his Web site: www.joe-ray.com.

     
 commenting closed Add Social Bookmark bookmark  print
 suggest topic  recommend ( 14 )  email

  brandchannel home archive   2012  |  2011  |  2010  |  2009  |  2008  |  2007  |  2006  | 2005  |  2004  |  2003  |  2002  |  2001
 
 
Dec 12, 2005 School Reform: Branding for Extra Credit -- Edwin Colyer
  As state schools begin to specialize in the UK, they must teach prospective students what their brand stands for.
   
 
Dec 5, 2005 Hot Shops: Retail Revamps -- Alicia Clegg
  It’s not enough to offer a sale anymore. These days retailers are creating theater to draw customers into a complete brand experience.
   
 
Nov 28, 2005 Virtual Packaging Lacks Sense -- Randall Frost
  Products sold online lack the benefit of three of the five senses. How does the lack of touch, smell and taste affect consumer shopping behavior?
   
 
Nov 21, 2005 A Competitive Edge in a Cutthroat Market -- Slaven Marinovich
  Close shave: The cutthroat business of trademarks in the world of wet-shaving equipment manufacturers sharpens between Gillette and Wilkinson Sword.
   
 
Nov 14, 2005 Fidelity and McCartney: Mutually Invested -- Renée Alexander
  Celebrity endorsements: When ex-Beatle Paul McCartney joins forces with Fidelity Investment do consumers suddenly want to buy mutual funds?
   
 
Nov 7, 2005 Rendering Your Brand in 3D -- Vincent Grimaldi de Puget
  An opportunity to wrap customers in the complete brand experience starts at the front door. What is environmental or retail branding and why should we bother?
   
 
Oct 31, 2005 Capitalizing on Creative Differences -- Edwin Colyer
  In the saturated field of consumer goods, what is it that makes a new product really fly?
   
 
Oct 24, 2005 Branding, a Job Well Done -- Dale Buss
  How do major brands like Costco and Ritz-Carlton become household names without relying on traditional advertising? By tapping into their greatest resource: Employees.
   
 
Oct 17, 2005 Attracting a Positive Market -- Cristian Salazar
  HIV treatment medications must confront a difficult subject and still offer hope. A competitive analysis of how various drug companies approach the market.
   
 
Oct 10, 2005 Marketing and Tweens: BFF -- Alycia de Mesa
  Brands target the narrow but lucrative demographic of the tween.
   
 
Oct 3, 2005 Packaging Your Brand's Personality -- Randall Frost
  What's in the box? A well-designed package should convey the brand's personality.
   
 
Sep 26, 2005 Product Placement: Making the Most of a Close-Up -- Abram Sauer
  Product Placement: Are you getting the best exposure for your brand?
   
 
Sep 19, 2005 Lose the Jargon, Voice Your Brand -- Rob Mitchell
  Companies need to listen to their inner voice.
   
 
Sep 12, 2005 Assigned Reading: Branding Gets Credit at University -- Edwin Colyer
  Universities take a tip from the corporate world in trying to brand their institutions.
   
 
Sep 5, 2005 Has French Wine Outgrown the AOC? -- Joe Ray
  Is AOC bringing clarity to the French wine industry or just causing more confusion?
   
 
Aug 29, 2005 Sambazon Squeezes into the Juice Market -- Dale Buss
  Will consumers get juiced up for Sambazon?
   
 
Aug 22, 2005 Counting on Your Brand's Name -- Chris Grannell
  Running the numbers: Brands like 3 Mobile, neuf and 118118 seek to differentiate from their alpha competitors.
   
 
Aug 15, 2005 The Myth of Authenticity -- Alicia Clegg
  How important is authenticity in your brand story? Brands like Häagen Dazs and Baileys Original Irish Cream stretch the heritage myth.
   
 
Aug 8, 2005 Hotel Brands Break the Chain -- Rob Mitchell
  After decades of perfecting the known experience at chains around the world, hotel brands are now trying to create boutique hotels as guests go on a quest for the one-off experience.
   
 
Aug 1, 2005 Naming: Entering the Chinese Market -- Doris Ho
  How will your name be received in China?
   
 
Jul 25, 2005 Best Global Brands: Focus on UBS -- Robin Rusch
  Among the top five fastest growing brands on the list of 100 Best Global Brands 2005, Swiss financial services company UBS reflects the work in progress of growing and sustaining a global brand.
   
 
Jul 18, 2005 Magazines Circulate Their Brand Licenses -- A.K. Cabell
  Magazine publishers like Ebony mine their brand awareness for licensing opportunities.
   
 
Jul 11, 2005 GE Imagines a Greener Future -- Ron Irwin
  What can GE learn from Shell’s past experiences as it implements a commitment to the environment called ecomagination?
   
 
Jul 4, 2005 Brand Gamble: Mergers and Acquisitions -- Alycia de Mesa
  The marriage may be made in heaven, but did anyone check with the children? Mergers and acquisitions can be great for business but lousy for the customer.
   
 
Jun 27, 2005 Brands Suffer Youth Indecision -- Edwin Colyer
  Cheatin' heart: Youth are fickle, lacking loyalty, and high maintenance. Why do brand owners target them so heavily?
   
 
Jun 20, 2005 Growing Pains Small Brands -- Alicia Clegg
  How can a brand remain true while broadening its reach? Popular but small brands like Innocent Drinks, Tyrrells and Hill Station risk losing their original fans in their quest to grow bigger.
   
 
Jun 13, 2005 That's Rich: Redefining Luxury Brands -- Edwin Colyer
  As the masses rush to acquire luxury does it negate the original prestige of the premium brand?
   
 
Jun 6, 2005 Oops, I Merchandized It Again -- Alycia de Mesa
  Popular musicians say forget the concert or the album, the real money is in the merchandise.
   
 
May 30, 2005 Brands Go Beyond Product Placement -- Edwin Colyer
  Brands like BMW and Stella Artois team up with film directors for mutually beneficial branded entertainment sponsorships and partnerships.
   
 
May 23, 2005 Favored to Win: Branding professional sports -- Alycia de Mesa
  What does it take for an alternative sports league to win against the established national leagues?
   
 
May 16, 2005 Building Confidence in Your Brand -- Randall Frost
  What are the economic efficiencies of reaching confidence in your brand?
   
 
May 9, 2005 Is Fashion Design a Team Sport? -- Rob Mitchell
  Sports brands team up with fashion designers for a more competitive offering.
   
 
May 2, 2005 Local Success on a Global Scale -- Randall Frost
  How do huge global companies like Philips, McCain Foods and McDonald's achieve "multi-local" status?
   
 
Apr 25, 2005 Does Selling Science Take a Genius? -- Edwin Colyer
  The ultimate brand icon, Einstein is being used to promote every type of science initiative. Is this genius or mad?
   
 
Apr 18, 2005 Dove Gets Real -- Alicia Clegg
  Unilever’s Dove is the latest beauty brand to use "real" women to sell product. But can this campaign turn ugly?
   
 
Apr 11, 2005 Pharma Co-Marketing: Possible Side Effects -- Edwin Colyer
  When two pharmaceutical companies ally, so must their marketing efforts. Unfortunately, there’s no pill to make two competitors promotional partners.
   
 
Apr 4, 2005 Zen and the Art of Brand Maintenance -- Vivian Manning-Schaffel
  Disaster and fear offer hope to spiritual brand owners.
   
 
Mar 28, 2005 Is Ikea for Everyone? -- Elen Lewis
  Ikea reassembles only slightly to reach new markets.
   
 
Mar 21, 2005 Exposing Your Brand Internally -- Alycia de Mesa
  A brand is more than skin deep. Internal understanding of the brand is imperative to consistency in communication.
   
 
Mar 14, 2005 Churches Put Their Faith in Branding -- Edwin Colyer
  In doing god’s work, churches find themselves reaching beyond the congregation to spread the brand message.
   
 
Mar 7, 2005 Should Global Brands Trash Local Favorites? -- Randall Frost
  When P&G;, Unilever and Nestlé clean house, they risk losing local markets for beloved brands. Companies like Henkel, on the other hand, retain a portfolio of national and international brands to satisfy both global and local tastes.
   
 
Feb 28, 2005 Fairtrade: The Business of Ethics -- Alicia Clegg
  The Fairtrade mark allows brands to identify as in support of fairness to trade and promotion of economic development in the world’s poorest countries.
   
 
Feb 21, 2005 brandchannel's 2004 Product Placement Awards -- Abram Sauer
  Awards and commentary for the best and the worst of 2004.
   
 
Feb 14, 2005 Beer Brands and Homelands -- Edwin Colyer
  Is country of origin the most important quality of your beer brand?
   
 
Feb 7, 2005 Anti-Globalization: Are You Serious? -- Edwin Colyer
  Is anti-corporate sentiment a real threat to brand owners? What does the activist movement want and what benefit (if any) is that to the corporation?
   
 
Jan 31, 2005 Readers Pick Apple in 2004 -- Robin D. Rusch
  Apple, Google, Ikea, Starbucks and Al Jazeera: Brandchannel readers choose the brands that had the most impact on them in 2004.
   
 
Jan 24, 2005 Putting You in the EU -- Dafydd ab Iago
  Selling Europe: The EU has a constitution, now all it needs is citizen support and interest.
   
 
Jan 17, 2005 Branding with Chinese Characteristics -- Edwin Colyer
  Western brands hoping to break into China need to reconsider their brand identity and positioning for the local market.
   
 
Jan 10, 2005 Cars Make Inroads Online -- Edwin Colyer
  Automakers take risks online with co-branding and interactive options not seen offline.
   
 
Jan 3, 2005 Local to Global: Easy as 1-2-3? -- Randall Frost
  JetBlue and other smaller regional brands strive to disprove the Rule of Three.