THE FLADGATE PARTNERSHIP PRESS RELEASE

Post by **Roy Hersh** » Mon Jan 14, 2008 1:58 pm

The Fladgate Partnership Acquires 25% of Casa do Douro Port Inventory

Jan. 1, 2008 – The Fladgate Partnership, including the Port houses of Taylor Fladgate, Fonseca and Croft, has agreed to purchase approximately 25% of the inventory of the Casa do Douro, the federation of grape growers in the Douro region of Portugal. The purchase of the unsold stock (mostly 10-year old Ports) is a significant step on the part of the Fladgate Partnership to help rescue the bankrupt Casa do Douro and demonstrate that the destinies of the Port shippers and growers are intertwined.

The Casa do Douro has been plagued by high levels of unsold Port and corresponding debt levels. This sale marks the first time the Casa do Douro has made a meaningful sale to any shipper.

According to Adrian Bridge, CEO of the Fladgate Partnership, “We’re helping to solve a situation that has been hanging over the Port trade for a number of years. Although we are a small specialist company, we’re providing a strong leadership role in the industry, as we believe in the future of Port and are responding to consumer-led demand for more Aged Tawny. It is a way to help the Casa do Douro solve some of its problems and improve conditions for the farmers in the Douro, who are the lifeblood of the Port industry.”

David Guimaraens, wine director for the group, added, “Our technical expertise will help present these wines in a way that appeals to today’s consumers. This is more about the willingness of our group to help the Douro and to play our part in leading the sector forward.”

The Fladgate Partnership is the fourth largest shipper with 11.7% of the total Port market volume (behind Symington at 22.3%, Porto Cruz at 20.5% and Sogrape at 15.4%), but a more significant percentage of the value share. It is the only Port house that has remained focused on the Port market and has not diversified into table wines. The Fladgate Partnership anticipates continued growth for its specialty Ports (Vintage, LBV and Aged Tawny), and the purchase of the Casa do Douro inventory will enable the group to meet increased demand for Ports in the mid-price range.

The Ports of The Fladgate Partnership are imported to the U.S. by Kobrand Corporation, Purchase, New York.

Luc Gauthier · Post by **Luc Gauthier** » Tue Jan 15, 2008 7:50 am

Would not the Symmington family have a vested interest in the Casa do Douro ?
Does the FP have more of a social conscience ?

Post by **Roy Hersh** » Tue Jan 15, 2008 10:16 am

Luc,

An interesting if not rhetorical question.

I don't think it is about their social conscience. I believe they may have a different political view of what needs to get done to make things more efficient. They don't do Douro wines and therefore, they are on a different playing field than the Symington Family Estates.

The Symington's have championed more diversity, having secured great Quintas all over the Douro. The Fladgate Partnership remains very focused on just Port wine and has only diversified their portfolio of Quintas and purchased other Shippers, since the beginning of this decade.

It is difficult to compare them.

Luc Gauthier · Post by **Luc Gauthier** » Wed Jan 16, 2008 6:47 am

IMO , this is the way to go .
My involvement in the union mouvement has led me to believe so .
Solving problems , improving conditions of those that are the lifeblood , ( the grassroots ) can only improve the situation .
Why did the government wait so long ?

Post by **Roy Hersh** » Thu Jan 17, 2008 1:28 am

That my friend, is the question to ask me when we first meet in person and have a great bottle of Port to share.

Tom Archer · Post by **Tom Archer** » Thu Jan 17, 2008 2:01 am

I was under the impression that the Casa had operated as an intervention authority, and that their stocks were of doubtful worth..

Quite what Taylor would want to do with such wine is a bit of a mystery, but if they are taking a lead in the hope that others will follow then this is a worthy move.

I get the impression that most producers would be happy to see the Casa consigned to history - but I have never fully got to grips with the intricacies of the relationships that exist between the regulators and the regulated in Oporto..!

Tom

Post by **Roy Hersh** » Thu Jan 17, 2008 2:18 am

I get the impression that most producers would be happy to see the Casa consigned to history - but I have never fully got to grips with the intricacies of the relationships that exist between the regulators and the regulated in Oporto..!

Tom,

The Casa do Douro was a significant arm in the regulation of Port wine, (as mentioned in the other thread with a similar title). For many years it maintained the fine line necessary as a regulator. Their role has diminished over the years, some would say it was "marginalized" but that is a matter of opinion.

IMHO, the CdD in fulfilling its two main responsibilities, is no longer a valid entity to continue to pursue or execute either. Although this stance may not be popular; I believe the Casa do Douro has long passed its useful existence and should be replaced with a newer system or two.

The intricate relationship that you mention is one of the most fascinating dynamics to follow, but I understand why most people don't bother. It is far more fun to drink the stuff.

Thanks for your interesting POV.