Port Business

Question 1

Port growing players

Answer 1

20.000 vineyard owners
avg 2,2ha
Over 80% with less than 0,5ha

most sell to producers or coops
coops - 20% wine production can sell under own brands, but mostly sell to producers often through brokers

Question 2

Port biggest producers and their brands

Answer 2

producers: 30-35 make sign. vols.
top 5 make 80% of sales by volume

Largest: Porto Cruz - largest brand Gran Cruz

2nd Symington Family Estates (Cockburn’s, Dow’s, Graham’s, Warre’s)

3rd: Sogrape (portugal largest wine producer) - (Sandeman, Offley, Ferreira) + other non-ports

4th Fladgate Partnership (Taylor’s Fonseca, Croft, Krohn)

5th Sogevinus (Burmester, Barros, Cálem, Kopke)

Question 3

IVDP: role

Answer 3

• Formed 2003, replaced IVP
• Governs, represents Douro producers
• Controls, supervises Port + unfortified production and trade
• Monitors Beneficio card + grape volume matching
• Regulates annual permitted production volume (Beneficio)
• Maintains register: vineyards, companies (production + shipping)
• Regulates market release volume (max ⅓ of shipper’s stock per year) — “lei do terço”
• Oversees taste, style, labelling standards
• Responsible for promotion

Question 4

Port Production levels

Answer 4

2022 Port production: ~80 million liters, sales: 70 million liters
2023:
The entry-level categories accounted for more than 80% of sales by volume, leaving just 20% to the special categories. These, however, accounted for at least 45% of sales by value.

Question 5

Port Sales + volumes/values of special

Answer 5

Sales grew in late 1900s but declining since 2000
Average prices rising, driven by premium Port sales
Age-indicated Tawny Ports contributing to growth - attributed to Quality improvements & better marketing

IVDP data tracking categories:
Standard (Ruby, Tawny, White, Rosé)
Special Categories (Reserve Ruby/Tawny/White, Age-Indicated Tawny/White, Colheita, Vintage, Single Quinta, Crusted, LBV)

Special Categories: 23% of volume sales, 45% of sales value

Question 6

Port sales: exports

Answer 6

2022 Port sales: 82% exports
France: Largest by volume, followed by Portugal
French exports: Mostly inexpensive Ports, mainly as aperitifs
Declining sales due to falling demand for inexp. Ports in markets like France & Holland (Other aperitifs replacing Port in these markets)

Question 7

Port: Ways to compensate for declining:

Answer 7

• Production diversifying into still wines: Symington, Quinta do Noval, Ramos Pinto, Niepoort → still wines rising, helps introduce new customers to Port (esp. exports, less traditional)
• Contrast: Taylors’ Port focus, but 2023 bought company outside Douro to invest in still wine production
• New Port styles (Rosé, unaged Whites) → attract new customers, aperitif/cocktails use; lower ABV than spirits/mixers seen as positive
• Premium reds in hospitality, e.g. Graham’s 4.5L Tawny for large parties, digestif, photo opportunity