How to turn around Port sales into the black again?

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Roy Hersh
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How to turn around Port sales into the black again?

Post by Roy Hersh »

What will turn around Port sales - after a decade of mostly downward sales, what do you forecast will get the worldwide sales back on track?

Any great "new" suggestions?
Ambition driven by passion, rather than money, is as strong an elixir as is Port. http://www.fortheloveofport.com
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John M.
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Re: How to turn around Port sales into the black again?

Post by John M. »

Perhaps some celebrity endorsements or product placement in a movie. Imagine if port were part of a James Bond movie--it would instantly be stylish and chic. Hey, instead of "shaken, not stirred" we could have "Decanted by the Hersh method" [cheers.gif] :wink:
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Re: How to turn around Port sales into the black again?

Post by Andy Velebil »

A short article that came out yesterday about Port.
After a decade of slow but steady decline, annual revenue last year was euro44 million lower than in 2000, at euro370 million, and 12 million fewer bottles were sold compared to that year, according to the Association of Port Wine Companies, an industry group.
http://www.boston.com/business/articles ... _a_future/
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Roy Hersh
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Re: How to turn around Port sales into the black again?

Post by Roy Hersh »

When judging specific years for sales of Port one must always be aware of whether or not a Vintage Port was being released in the year in question. For example, the vast majority of 1994 VP's which first hit some USA shelves in late 1996, hit the shelves during the first quarter of 1997 in the UK and was generally much more prevalent on shelves in the USA in 1997 too. So there is a major uptick in 1997 Port sales from 1996 and this is the reason why. I use this older vintage and it's release ... solely as an example of how sometimes the individual years' sales figures can be quite skewed and mis-stated by journos that don't understand. That said, I am not making any judgment about the author of the above article when it comes to his assessment, there's no question that Port sales are in the toilet and most who've been here for any length of time know that already.

I don't want this thread to turn into "what is wrong with Port sales" ... as we've all been there and done that here on the forum.

Let's try to come up with some more progressive suggestions of what might help turn this around, beyond more education and promotion ... which we all realize is badly needed. [bye2.gif]
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Eric Menchen
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Re: How to turn around Port sales into the black again?

Post by Eric Menchen »

I wonder if there could be a tie in with tourism. I liked dessert wine before going to Portugal, but I was hooked Port when I spent a week in Oporto.
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Re: How to turn around Port sales into the black again?

Post by Jeff G. »

My sweet spot for newly released port is 40-60$ ..

I've seen prices creep to around 70-90$ however I know from experience that once it hits the auction blocks it'll trade back down to 40-60$ so recently released prices have kept me on the sidelines.

I find it amusing that SQVP sell for 30-40$ when the quality is just as good.
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Re: How to turn around Port sales into the black again?

Post by Paul Fountain »

The producers need to look outside their traditional markets. China is the obvious one. Many of the producers are seeing growth in Brazil. I think that Chile and Argentina are both countries that could be targeted as well as they have the wine culture without any great fortified traditions of their own (not to mention a sweet tooth). I'd also think that the countries that make up the former USSR could provided increased sales with proper education and marketing.
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Re: How to turn around Port sales into the black again?

Post by Andy Velebil »

Uh, travel to the big markets, do tastings, and get people re-energized about Port. Example, Los Angeles is a major Port consuming area that is one of the top ones in the country, and it's impossible to get producers here, save one every year or two. I mean, come on, we're a huge market that gets totally left out of winemaker/producer tastings and events. They all seem to head to San Francisco, which I understand simply because many importers are based there so it's easier for them. But they are in sales and sales aren't meant to be easy. And I don't think they realize how large Cali is and that those of us in south can't easily make an 8 hour drive north for a tasting. Every time in the past when there was a public Port (and or Douro wine) even here it sold out. People in the states want to meet the producers and make the direct connection. However small or trivial it may seem to a producer it's a big deal here. Simply for the reason that people here are used to being able to meet wine producers at some point. This "connection" pays off huge in loyalty later on.

The producers, both large and small, need to put their differences aside and start doing some marketing together for the betterment of all. A single producer isn't going to be able to do it on their own.
Andy Velebil Good wine is a good familiar creature if it be well used. William Shakespeare http://www.fortheloveofport.com
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Re: How to turn around Port sales into the black again?

Post by Moses Botbol »

Promotion, Promotion, Promotion.... Product placement wouldn't hurt either. $70 for a current release is a little expensive and the lack of 20+ year old vintages available for sale doesn't help either.

Someone buys a 2007 VP thinking it's going to be like a dry wine is not going to have the experience of opening an '83 or '85.
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Re: How to turn around Port sales into the black again?

Post by Mark Hudson »

I have to go along with the supply issue. I seem to have difficulty finding specific ports vs still wines.

When I joined this forum Roy suggested a tawny for me to try. I did a wine searcher lookup and could only find two bottles in the us and neither from any vendor I had heard of. Not to mention the shipping on one bottle from both of those vendors added about 20%

Even simple thing like lbv port I see posted about here seems almost impossible to find.

Maybe I am looking in the wrong spots, who knows.
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Re: How to turn around Port sales into the black again?

Post by Andy Velebil »

Mark Hudson wrote:I have to go along with the supply issue. I seem to have difficulty finding specific ports vs still wines.

When I joined this forum Roy suggested a tawny for me to try. I did a wine searcher lookup and could only find two bottles in the us and neither from any vendor I had heard of. Not to mention the shipping on one bottle from both of those vendors added about 20%

Even simple thing like lbv port I see posted about here seems almost impossible to find.

Maybe I am looking in the wrong spots, who knows.
Although I used to go to Reno every couple months during college to visit Fraternity bro's there, it's been many years since I've last been there. Are there good wine stores around town that stock Port and/or Douro wines?
Andy Velebil Good wine is a good familiar creature if it be well used. William Shakespeare http://www.fortheloveofport.com
Moses Botbol
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Re: How to turn around Port sales into the black again?

Post by Moses Botbol »

There's got to be some decent port and Douro red's available in Reno.

How about take list of what they have, report back and we'll recommend the good one's & good values? [cheers.gif]
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Mark Hudson
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Re: How to turn around Port sales into the black again?

Post by Mark Hudson »

I will take you up on your offer, should be fun.

I will hit a major store each night next week and make a simple list of the ports and prices.

By far the largest store is total wine. And their inventory is online. There are a few small chains ( mostly now suffering from total wine opening up) and a handful of very small shops that carry some higher end wines. Other than trader joes and Costco that about the entire Reno wine market.

What you guys may not know is Reno and Vegas went through a huge boom bust cycle. Much more pronounced than any place I have seen in the us. 4 years ago people were literally camping out in driveways to be first in line to buy new lots when they came on the market. Now you could shoot a gun down some streets and not hit a soul.

Many of the higher priced houses fell almost 50%

There has been no recovery here of any sort.

May be a factor on things like port
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Re: How to turn around Port sales into the black again?

Post by Moses Botbol »

Romney was criticized for his comments during GOP debate in NV a couple weeks ago as insensitive towards those in foreclosure. Someone is going to make fortune on those foreclosures as many did when they were originally developed.
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Re: How to turn around Port sales into the black again?

Post by Tom Archer »

- Port has a much broader appeal than either Sherry or Madeira, and it's not hard to find people who have never 'got into' port, and give them a pleasant induction.

1) Industry-wide promotion in export markets is therefore essential - a duty of the IVDP that appears to have been gravely neglected.

- Cost affects sales, and rises in the UK supermarket prices over the last few years have probably impacted volumes.

2) Portugal needs to stop denying the inevitable, leave the eurozone, and allow its new currency to de-value to make its exports more competitive.

- The medical misery-mongers, armed with the flimsiest of evidence and no good scientific research; are continually putting out advice on alcohol consumption that goes un-challenged.

3) The drinks industry, collectively; needs to fund a 'rebuttal team' - ready to fight back immediately in all medias, whenever negative advice on alcohol consumption is made, either by governments or medical bodies.

Tom
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Re: How to turn around Port sales into the black again?

Post by Glenn E. »

Tom Archer wrote:- The medical misery-mongers, armed with the flimsiest of evidence and no good scientific research; are continually putting out advice on alcohol consumption that goes un-challenged.
It is important to distinguish between the UK's "maximum safe consumption" which is not supported by good scientific research, and the absolute fact that when consumed in excess alcohol is bad for you.

The trick is that "consumed in excess" isn't well defined, and that's where the UK's recommendations fell short on research.

But don't lose sight of the fact that alcohol is most definitely bad for you if you drink too much.
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Tom Archer
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Re: How to turn around Port sales into the black again?

Post by Tom Archer »

and the absolute fact that when consumed in excess alcohol is bad for you.
As is just about everything else when consumed to excess.

Alcohol greatly reduces stress and anxiety, which is well known to have serious health consequences; but because it is impossible to accurately measure stress, this benefit is ignored.

Provided your alcohol consumption does not intoxicate you to the point where you are a danger, either to yourself or to others; it is probably beneficial.

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Re: How to turn around Port sales into the black again?

Post by Glenn E. »

Tom Archer wrote:Provided your alcohol consumption does not intoxicate you to the point where you are a danger
Alcohol lowers your ability to determine whether or not you are nearing that point.

The point of excess for alcohol is significantly lower than for most "everything else" to which you refer, and it varies considerably from person to person. The UK's consumption guidelines may have been based on nothing more than speculation, but they're at least an attempt to help people be reasonable. They're guidelines after all, and not strict limits.

Very moderate consumption of alcohol likely is good for you, but it only takes a glass of wine per day to reach that threshold. Beyond that, you're flirting with excess with every drink, and you're less likely to realize it with each successive drink.
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Tom Archer
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Re: How to turn around Port sales into the black again?

Post by Tom Archer »

Very moderate consumption of alcohol likely is good for you, but it only takes a glass of wine per day to reach that threshold. Beyond that, you're flirting with excess with every drink, and you're less likely to realize it with each successive drink.
Sorry mate, but that is absolute rubbish.
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Re: How to turn around Port sales into the black again?

Post by Glenn E. »

Tom Archer wrote:
Very moderate consumption of alcohol likely is good for you, but it only takes a glass of wine per day to reach that threshold. Beyond that, you're flirting with excess with every drink, and you're less likely to realize it with each successive drink.
Sorry mate, but that is absolute rubbish.
ROFL.
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