Port Wine Law and Business

Question 1

What word can be used to describe land ownership in the Douro?

Answer 1

Fragmented

Question 2

How many land owners are there in the Douro? What percentage of landowners have less than 5 hectares of land?

Answer 2

21,000 owners

93% own less than 5 ha

43% own less than .5 ha

Question 3

What do the small landowners in the Douro typically do with their grapes?

Answer 3

Sell them to a medium or large producer or to a cooperative

Question 4

Are Port producing cooperatives allowed to sell their own brands?

Answer 4

Yes, though most will sell their wine to a large producer due to the prominence of their labels

Question 5

True or False

Brokers are used in DO Porto as part of the grape trade

Answer 5

True

Question 6

How many Port producers create significant volumes of port? How many producers are responsible for 80% of production?

Answer 6

30-35 producers have significant volumes of Port

Five main producing groups control 80% of production

Question 7

Who are the most significant producers of Port?

Answer 7

Porto Cruz
Symington Family Estates
Sogrape
Fladgate Partnership
Sogevinus

Question 8

What is the IVDP? When did it come about and what is its role?

Answer 8

In 2003, the IVDP was established to govern and represent the interests of wine producers in the Douro. It superceded the IVP and is responsible for the supervision and trade of Douro wines.

Question 9

What facilitates the regulation of Port production?

Answer 9

The IVDP by means of the Beneficio, a grading system for vineyards in the Douro that controls the amount of grapes that can be used in Port production.

Question 10

What is the maximum amount of port that can be released in a year?

Answer 10

One third of the total stock a shipper maintains

Question 11

Who is responisble for determining the quality of Port wine before it is released? How is this achieved?

Answer 11

The IVDP tastes the wines

Question 12

What is the Beneficio?

Answer 12

A system of regulation over the quality of grape must used in Port production. The name refers to both the system and the amount of Port that can be produced.

Question 13

How does the Beneficio classify grape must?

Answer 13

It does not classify must, per se. It assesses the capacity of a vineyard to produce quality grapes based on location, altitude, aspect, soil, and varietal selection.

Question 14

What scale does the Beneficio use to indicate the quality hierarchy in the Douro? How does it affect Port production?

Answer 14

A letter scale ranked from A to I. The vineyards ranked A can produce the most amount of grape must for Port, while those ranked F can produce the least. Anything ranked below F cannot produce grapes for Port production.

Question 15

What is the maximum volume of Port that can be produced each year?

Answer 15

It varies every year. The final number is decided in an agreement by the growers, the producers, and the IVDP based on market demand and availability.

Question 16

What is the ultimate goal of the beneficio?

Answer 16

To keep grape and wine prices stable through its influence on supply and demand

Question 17

What effect does the Beneficio have on the price of grapes within its system compared to grapes outside of it?

Answer 17

Grapes in the Beneficio are generally more expensive, often priced at 1.20-1.40€ while grapes outside the system cost .25-.40€

Question 18

True or False

Grape growers within the Beneficio can trade their grapes among each other

Answer 18

True. This is done through the grading certificates awarded to their land by the Beneficio. In practice, lower quality grapes are most often traded

Question 19

What might be the benefit of trading for lower quality grapes within the Beneficio?

Answer 19

Some of a grower’s high quality grapes that cannot be used in a specific allocation can be blended with lower quality grapes, creating a better product that utilizes a grower’s supply.

Growers may also sell their lower quality grapes outside of the Beneficio at higher prices than non-Beneficio grapes.

Question 20

If many of the growers of Port grapes don’t produce wine, how do they earn an income?

Answer 20

Through the trading of their grapes, leading to a high amount of trade each year.

Question 21

How do growers and producers of Port feel about the Beneficio?

Answer 21

That it is archaic and ultimately subsidizing unfortified wines. The Beneficio continues to allow vineyards to be planted though demand for Port has fallen, leading to grape oversupply and lower prices. The artificially high prices for Port grapes are fuelling producers of unfortified wines.

Question 22

What is the recent trend of Port sales?

Answer 22

Here has been a steady decline in total volume since 2000, but average sale price has gone up

Question 23

How much Port was produced in 2017? How much was sold?

Answer 23

82 million liters produced, 75 million liters sold

Question 24

What category of Port had increased in sales over the past 20 years? What effect has this had on average sale price?

Answer 24

Age-indicated tawny Port has heightened popularity, leading to increased average sale prices

Question 25

The IVDP separates Port into what categories?

Answer 25

Ruby
Tawny
White and Rosé
Special Categories (everything above basic examples)

Question 26

What percent of volume do special categories of Port comprise? What percent of value?

Answer 26

23% of volume, representing 45% of total sales value

Question 27

What percentage of Port by volume is exported?

Answer 27

85%

Question 28

What is the largest market for Port? Why?

Answer 28

France, where inexpensive styles are drunk as an aperitif

Question 29

What is the second largest market for Port? Why?

Answer 29

Portugal. It’s made there which is probably why it’s popular. No real reason given. Just makes the answer harder to remember when I add the ‘Why’ to this and the “Largest market” question.

Question 30

Why are Port sales volume declining?

Answer 30

Primarily because other drinks are becoming fashionable as aperitifs in France and Holland

Question 31

Are Port producers diversifying into unfortified wines? Why or why not?

Answer 31

Some major brands are with the hope that the unfortified wines will attract renewed interest to Port.

Question 32

How are white and rosé Ports marketed? Why?

Answer 32

Typically as aperitifs or as cocktail ingredients to attract new market demographics.

Question 33

How are white and rosé Ports marketed? Why?

Answer 33

Typically as aperitifs or as cocktail ingredients to attract new market demographics.