Codorniu bites the bullet

Codorniu, the family-owned Cava/Wine group that produces roughly one-third of all Cava, has announced losses for the first time in their +125 year history. Their last fiscal year (July 2005 - June 2006) ended in red by 905,000 euros, on sales of 201 million (a drop of 3%, attributed in large part to the Cava boycott). A large factor in these losses has most likely been the cost of internal reorganization.

This fiscal year, the group is forecasting increase in sales of roughly 9% to 218 million euros. Codorniu is planning to invest some 12 million euros this year to: buy 150 hectares of vineyards in Argentina's Uco Valley, further improvements to their Rioja winery, Bodegas Bilbainas, as well as to Artesa, their winery in Napa, and to Raimat, their winery in the Costers de Segre D.O.

Raimat's sparkling wines will return to D.O. Cava clasification, with the recent change in the Cava D.O.'s stance on the use of Pinot Noir to produce white sparklers, which Raimat will continue using.

Codorniu's Managing Director , Xavier Pagés, has played down rumors of additional winery buy-outs which had been triggered by the news that one of the Raventos family members (which owns Codorniu) had stepped down from the board of directors and had bought fellow cava producer Parxet.