Buoyed by the growth of ‘special category’ Ports and at-home consumption moments, the sector is being propelled forward by innovative RTDs and new serves. Clinton Cawood reports.
It’s been an interesting and challenging few years for Port, but the category has proven itself to be both versatile and adaptable, while still making the most of its strong heritage and tradition. Perhaps some of the biggest challenges brought by the COVID-19 pandemic were most keenly felt in Port’s home market of Portugal, its second-largest after France.
Now recovering, the country showed the biggest increase in terms of Port volume between 2020 and 2021, rising 21.9%, according to IWSR Drinks Market Analysis.
Maéva Fonsino, international brand manager for La Martiniquaise-Bardinet’s Porto Cruz, agrees it’s been a challenging time. “We’ve been through ups and downs in our key countries, deeply affected by tourism for Portugal and travel retail, and the closure of the on-trade,” she says.
The pandemic hasn’t had an entirely negative impact on Port, however, and in many ways, the category proved to be well-suited to the circumstances. “Port has long had a strong association with moments of comfort and time spent with family at home,” says Harry Symington, communications & vintage Port category manager for Symington Family Estates. “In 2021, there were more of these opportunities for people to treat themselves with a glass of Port.”
Raquel Seabra, executive board member of Sogrape, which owns the Sandeman and Ferreira brands, noticed a similar trend. “We found that people discovered more Port consumption moments,” she says. “Spending more time at home, and more curiosity to diversify everyday regular drinks, allowed people to rediscover Port.”
A focus on premium
The overall Port category grew in volume by 4.6% from 2020 to 2021, according to IWSR, but that’s not necessarily the most important part of the story. For a long time, the standard segments of Port have been declining, while the ‘special categories’, as the Instituto dos Vinhos do Douro e Porto (IVDP) calls them, have risen significantly.
“Key not just to the success of our business, but also to the industry, is remaining focused on those special category Ports,” says Adrian Bridge, CEO of The Fladgate Partnership, which includes the Taylor’s, Fonseca, Croft and Krohn brands, citing examples within 'Reserve Ruby', such as Fonseca Bin 27 and Taylor’s Select, as well as 'late bottled vintage' and 'aged tawny' styles.
A focus on the top end of the market has proven to be a successful strategy for Quinta da Boeira, as owner Albino Jorge da Silva e Sousa confirms. “In order to maintain a brand image of Port wine, we think that special categories have a future with consumers who are looking to offer their clients and friends something with prestige,” he says.
Sogrape’s Seabra also remarks on the strength of higher-priced products in the category. “We saw very good performance for our Port brands during 2021 as a reflection of the pandemic recovery and gradual return to normal — this was mostly seen in premium Ports,” she says, commenting on the “great performance of superior categories such as reserves and aged tawnies”.
The latter has been performing well and showing great potential. “Aged tawnies offer such a different style of Port to the ruby family,” says Bridge, adding that Taylor’s aged tawnies are seeing particular success in the US.
Seabra adds: “The excellent performance of our brands’ aged tawnies shows us that this is a premium Port category with the potential to continue to grow in the future. These are wines that adjust to regular consumption, but are also relevant in the gifting territory. So, our job is to continue to spread the word on what they are, how they are made and orient the consumer on the perfect serve.”
The importance of innovation
While the Port category might previously have been more associated with tradition than innovation, it’s the latter that has arguably defined it in recent years.
“Port is an incredibly versatile wine with different styles suited to different occasions — from drinking a chilled glass of tawny after lunch in the summer or mixing a white Port & tonic cocktail as an aperitif," says Symington. "These new consumption occasions have helped us introduce Port to a new generation of consumers. Our recent innovations aim to lead the way in encouraging these new ways of drinking Port, both in terms of occasions and serves, and we aim to build on this in the coming years.”
La Martiniquaise’s Fonsino agrees. “Of course, the tradition remains, but the renewal is gradually taking place to open up to new ways of consumption. We know the challenges the category faces today, and we want to continue to promote the tradition and at the same time share a modern image and be closer to the consumer.”
For Porto Cruz, this is in large part about promoting its Cruz Fresco serve, combining a choice of tawny, ruby, white or pink Cruz Port with tonic, along with a garnish of either citrus fruit or mint.
La Martiniquaise is not the only one that sees the potential of cocktails and, by extension, the on-premise. “We have had some very positive successes with our mixology work that we started over a decade ago, creating not only a different moment of consumption for the consumer but also giving the bartender an alternative alcoholic beverage to use in their bar programme,” says Symington.
One recent manifestation of this was a cocktail competition to support the launch of Graham’s Blend No.12 Ruby Port, which was designed, according to Symington, to “express ruby Port’s profile in a way that lends itself to creativity and experimentation”.
João Tamagnini Belo, international business manager for Sogevinus Fine Wines, points to consumption trends in relatively new markets, such as South Korea. “Tawny Port on the rocks is a trend in numerous on-trade venues in Seoul,” he says. “This indicates that there is still latitude to innovate and surprise in one of the world’s great wines.”
The rise of RTD Port
Some of the most high-profile innovations followed recent changes to IVDP regulations that allowed Port producers to enter the fast-growing ready-to-drink (RTD) category. Among the pioneers is Sogrape, with its Offley Clink Portonic (the company also has Sandeman RTD products in the pipeline).
“All these new products have a modern and fun image,” says Seabra. “Their versatility allows us to explore new moments of consumption for Port.”
Symington, too, launched its own RTD, Cockburn’s Portonic, in cans in 2021. “The response has been very positive and has allowed us to introduce Port to new audiences who are drinking it on different occasions,” says Symington.
Bridge reports success with Fladgate’s RTD options too. “We see RTDs as a very exciting opportunity, and one that will take us into the sphere of fast-moving consumer goods, an area we're learning about very quickly,” he says, reporting that the company’s RTDs have been well received, growing points of distribution in both the on- and off-premise.
Speaking more generally on innovation, Bridge comments that Fladgate considers this “to be a fundamental part of our business, and one that will see greater growth in the premium Port market”. He highlights the release of the Taylor’s Historical Collection as a recent example of how innovation can operate within what could be considered a traditional category of fine wine. “The recent launch of the Taylor’s Golden Age 50yo Aged Tawny, the limited releases of wines such as Taylor’s Scion, 1863, 1896 and the Kingsman over the past few years have sparked a renewed interest in Port and enabled us to engage with a varied cross-section of consumers,” he says.
'Vintage' stands the test of time
Even 'vintage', the most traditional of Port styles, has shown some evolution in recent years in terms of how it’s consumed, according to Boeira’s Sousa. In the US, he says, vintage Port that used to be cellared and left to age in the bottle for ten to 15 years is now being consumed after the launch of the vintage. "The justification is to appreciate a young, full-bodied and fruity wine,” he says.
Fladgate’s Bridge recognises something similar. “Today people tend to take a much more informal, even irreverent, approach to the enjoyment of fine wines, and vintage Port is no exception,” he says. “It can be enjoyed at any relaxed gathering of friends, whether or not they are knowledgeable about wine.”
Regardless of when and how it’s consumed, there remains significant optimism within the industry for this core style, even as the category evolves and develops new styles, serves and occasions. As Bridge puts it: “The future for vintage Port is bright. The market for single quinta vintage Ports has grown, as they offer such wonderful value for money and provide the consumer with a perfect profile into the terroir of that particular property.”
Perfectly suited to changing consumption trends, these tend to mature earlier, and are released with some bottle age, Bridge adds.
Sogrape’s Seabra, too, is optimistic about this traditional style. “Vintage Port will continue its path as the most recognised and emblematic category, thus keeping its fundamental role in each brand as a reinforcing vehicle of credibility and recognition.” Belo agrees. “Vintage Port, one of the great wines of the world, will endure the test of time and continue to prove that all great wines, whether aged in bottle or barrel, provide a unique pleasure when uncorked,” he says, before adding a more general note of optimism for the wider category.
“Port is here to stay, for at least the next 100 years."
This article was initially published in the September issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
