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Shaky politics hurts cava sales

The industry for cava, a Spanish sparkling wine made in the same tradition as champagne, has suffered for years from the bickering between the Catalonian and Spanish national governments. The sector says that it is still licking its wounds from when former ERC leader Josep Lluis Carod-Rovira was appointed in 2004, which removed Madrid from the running for the 2012 Olympics.

In an unreasonable response, many Spanish consumers outside of Catalonia stopped buying cava wines and other goods made in the region. In recent years, there have been efforts to keep political strife from affecting business activity. Still, the regulator that oversees the cava industry assures that after a whopping 20% decline in sales since 2006, a silent boycott persists.

The recessions in Spain since 2008 have also hurt cava sales, and big brands have shifted their focus to export markets, but even these sales have been hurt by Catalonia's push for independence. In Madrid, sales have fallen 40% since 2010. The worst of it was felt in the summer, so the brunt of the economic impact will hit soon.

As we enter the Christmas season following a rough summer, another boycott on cava could be ruinous. The industry is having talks with politicians, and Barcelona and Madrid should try to reconcile their differences.

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