Madeira Business

Question 1

Madeira Labelling terms and bottling laws

Answer 1

Here’s the shortened, easy-to-remember version:

Labelling Conventions

• Based on: grape variety, sweetness, aging, single/multi-vintage
• Sweetness Levels:
  • Extra Dry
  • Dry
  • Medium Dry
  • Medium Sweet (Medium Rich)
  • Sweet (Rich)
• All have some sweetness
• Overlap between categories (e.g. one’s “dry” = another’s “med dry”)

Varietal Labelling

• Common on premium wines
• Each variety = style proxy (except Tinta Negra)
• Style (e.g. medium dry) not needed on label if varietal shown

Other Requirements

• Bottling date required (since 2015)
• Bottling after Oct 31, 2nd year post-harvest
• Some producers (e.g. H\&H) use 500ml bottles (vs standard 750ml)

Question 2

Madeira industry structure

Answer 2

• Highly fragmented vineyards: 1,600+ growers, avg 0.3 ha
• Winemaking & maturation consolidated: Only 8 producers
• Top 3 producers: Justino’s, Madeira Wine Company, Henriques & Henriques
  Only 2 producers own/rent vineyards: Madeira Wine Company & Henriques & Henriques
• All producers buy grapes, often from hundreds of growers
• Agents streamline grape buying, advise growers, and coordinate harvest

Question 3

IVBAM - role,

Answer 3

Founded 2006, regulates and supports Madeira wine, embroidery, handcrafts, and spirits
Monitors stock & quality control
Presence required at grape reception & maturation sealing/unsealing
Tastes & analyzes aged wines; supports+advice growers through visits
Sets regulations for production & labelling

Question 4

Madeira Sales

Answer 4

• stable over decades;
• 2023 total sales: 3 million litres
• 86% of sales = young corrente Madeira, mostly Tinta Negra (2.6M litres)
• Top age-indicated categories: 5-year & 10-year Madeiras
• Most Terrantez sold as Frasqueira or 20-year-old Madeira
• Colheita & Frasqueira: 50,000+ litres (2.5% of sales) in 2023
• more common than the older age-indicated of non-vintage (20- or 50yo)
• Gradual increase in sales value: €21 million in 2023
• Colheita & Frasqueira increased their share of total value

Question 5

Madeira top markets

Answer 5

Largest market: France (0.8M litres in 2023)
Second: Madeira itself (0.47M litres) – driven by tourism
Next largest: Germany (0.28M litres), UK (0.23M litres)
France & Germany: Focus on inexpensive Madeira
Domestic market & USA: Higher sales of premium Madeira

Question 6

Cooking Madeira

Answer 6

20% of total sales used for cooking & confectionery
Made by estufagem, released one year earlier than drinking Madeiras (can be since its sold specifically for cooking purposes)
Modified with salt/pepper for sauces & food products