For The Love Of Port

Frederick Blais wrote:Any chance you'd get more involved into Madeira market for Eastern Canada? The SAQ and LCBO, the 2 biggest market in Canada for wines have almost nothing interesting to offer.

Regards

Fred

Actually, we sell our Broadbent Port and Madeira in the Western Provinces, mostly BC and Alberta. We have, in the past, sold it to the LCBO but they haven't bought recently. It is most frustrating! We sell our Chinese wine, Dragon's Hollow in Quebec, in fact, they just re-ordered. Now that we are a vendor there, I will apply at some point with the Port and Madeira.

Andy Velebil wrote:Bartholomew,

What are your thoughts on the Beneficio? It's a political hot potato for sure and no doubt needs some kind of overhaul. Some producers have even gone on a limb and said it may not survive another decade. What do you think of the current system and is it still effective?

many thanks
andy

It is a big and interesting topic. Broadbent Port had to overcome several rules which prevent the creation of new Port houses. One is the Beneficio system. The fact that you have to rip out an old vineyard, if you want to plant a new one. The fact that you have to have three year's worth of inventory before you can sell any. The fact that there is the limit on how much Port can be produced, if you want to make some, and who will give up their allocation for you? It is all very protectionist of the existing producers. So, going to existing Port producers, such as Niepoort, who are kind enough to make you a wine from their own Beneficio allocation, where you won't have to plant a new vineyard, where you have the benefit of more than three times the volume of wine in their cellars, this is how we became a Port. We still had to satisfy some other obligations required by the Portuguese authorities in the form of business registrations.

Anyway, in a way, it was beneficial to us because we had the Beneficio as an excuse to build a relationship with one of the top Port producers, Niepoort, and we didn't have to invest in the infrastructure of building a winery or buying vineyard land.

This, incidentally, is nothing new; the majority of wine brands made in Napa Valley own no land, have no winery, hire or contract winemakers and use other people's facilities. They are, however, considered wineries and, today, most new wineries are actually just brands. Though, often, they do take out a bonded winery license which sits on display somewhere. It is by far the most cost effective way to build a winery brand and it is the brand which is most marketable, if ever they want to sell. It would take 25 years get out of the red on building a winery, but building a brand is what it is all about these days.

Andy Velebil wrote:Bartholomew,

How do you see the rise of Douro wines affecting the production of Port, or vice versa?

many thanks
andy

It has been interesting to watch Quinta do Crasto. Quinta do Crasto has been around since 1615, under that name, and roman ruins on the property indicate they were making wine long before. It wasn't until the recent change in laws allowed Single Quintas to become Shippers themselves. That change in itself enable them to bottle their own Port and sell less to Taylor's and other such Shippers.

Then came table wine, though the great Barca Velha has been produced since the 1950s, it was Quinta do Crasto who revolutionized the Douro wine scene by hiring winemaker David Baverstock away from the Symingtons and Cristiano VanZeller to help market their wine. The fact they have become more famous for table wine than Port, even though I think their unfiltered LBV is second to none, has impacted how much wine is available for their own Port, let alone Port that is sold to the Symington and Robertson group.

Crasto has coped with their growth by buying more vineyards, re-building vineyards and planning ahead. But, all this to say, yes, table wine will have an impact on the Port business. Port is, by nature, a wine of limited appeal, as much as we all love it, it doesn't hold the mass potential of table wine. It is also a quicker return on the money than Port so, to the accountants and MBAs of the world, wine from the Douro is a much more attractive investment.

If the Douro catches on, the way wine areas can, then there will be great interest in making more and more wine there. It will become more and more a tourist destination. Port will benefit but table wine is what most people will buy when they get home. I admire the Robertson's for not yet venturing into the table wine business but, on the other hand, it is short sighted of them in the long run. Table wine will become more important than Port in the Douro, if it hasn't already. Historically, Port will have its place but will never see the growth rate that we'll see with table wine. That's just my opinion and I don't imagine everyone will agree with it!

Bartholomew Broadbent wrote:Port is, by nature, a wine of limited appeal, as much as we all love it, it doesn't hold the mass potential of table wine. It is also a quicker return on the money than Port so, to the accountants and MBAs of the world, wine from the Douro is a much more attractive investment.

How do you think the Port industry (the large sense) should grow their fan base? How they attact more people into enjoying Port? Does the IDVP really even care about increasing Port's popularity beyond just some token marketing efforts?

We have talked about this a lot on this forum. Ideas range from celebrity endorsement, sports sponsorship, product placement, new products, and new ad campaigns just to name a few. They all have their strong & weak points. Some say make port that new drinkers want to drink like Croft Pink, or sell the lifestyle of traditional port drinkers as an ideal...

Not sure what they should do, but it seems like not much is being done to promote Port... Ironically, I say that coming from a Douro port and wine event last night...

Moses Botbol wrote:

Bartholomew Broadbent wrote:Port is, by nature, a wine of limited appeal, as much as we all love it, it doesn't hold the mass potential of table wine. It is also a quicker return on the money than Port so, to the accountants and MBAs of the world, wine from the Douro is a much more attractive investment.

How do you think the Port industry (the large sense) should grow their fan base? How they attract more people into enjoying Port? Does the IDVP really even care about increasing Port's popularity beyond just some token marketing efforts?

We have talked about this a lot on this forum. Ideas range from celebrity endorsement, sports sponsorship, product placement, new products, and new ad campaigns just to name a few. They all have their strong & weak points. Some say make port that new drinkers want to drink like Croft Pink, or sell the lifestyle of traditional port drinkers as an ideal...

Not sure what they should do, but it seems like not much is being done to promote Port... Ironically, I say that coming from a Douro port and wine event last night...

It is an interesting question...

When I came to the United States to promote Port full time in 1985, there was limited interest and little knowledge on the topic. I spent the next ten years, age 24 to 34 going around the country doing Port tastings. Looking back at the press clippings, in one month I would generate more press on Port than is generated in an entire year by the mature industry of today. I would be traveling three weeks in a row, sometimes three cities in a day, very often three tastings a day. It wasn't only that I worked my butt off, it is also that I was young. That is the key.

I knew success after progressively seeing the Port consumer demographics change from old men, to middle aged men, to men and women to, the highlight: sitting at a podium in front of a group of 300 women aged 21-34 in San Francisco. When I did that tasting to that group of women, I knew Port would make it. Since then, the Port trade has not followed up on the efforts of keeping the youth interested.

We do not have any Port Ambassador visiting, let alone living, in the United States who is under 30 years of age. Those who are over 30, sadly, are still, mostly, wearing British bespoke suits, ties and generally propagating a stuffy image. Times have changed. We need a hip, young, attractive, knowledgeable, energetic etc... I admit, at that age, I did wear a suit and tie. That was the 1980s, early 90s. I don't wear a suit anywhere these days, except stuffy clubs in NY and London. My father, Michael Broadbent, on occasion the most formally bespoke tailored man in the UK, even complains that most of the Port Shippers are simply presenting the wrong image when they come to London to promote Port. Coming from my father? That's is quite a statement..

Make Port hip, fun and laid back. Adjust to today's lifestyle, today's movers and shakers and get rid of the stuffiness. That is what wine has done successfully. It has appealed to the life style. Port has not. Dirk Niepoort is the closest thing the Port trade has to the image needed. He has the most up to date image for Port... use him..he is the type of image that is popular and can build an entire category.. he is the Randall Grahm of Port, the Chester Osborne of Port.. yet the competitive nature of some Shippers cannot understand that they have the answer right there. They don't want to use one individual and rally behind that individual because they view him as competition.

The aggressive competition of some Port Shippers is very detrimental to the Port business. The fact that the 2007 Vintage Port tour was done with just three, or was it four, Port groups brought scorn from some of the press when they heard that the small producers were excluded. The whole industry needs to shape up and get over petty ugliness and promote itself, not just its brands. At the next Declaration, I'd love to see a boycott of those tastings unless they make them comprehensive, or at least don't pretend that they are comprehensive.

As for Croft's pink Port, though I have never tasted it and though it isn't exactly what I would look for in Port, it is a great idea. Actually, it was my idea in 1985. At the height of the blush wine popularity in America, I'd just been hired by the Symingtons. I suggested to James Symington that they should do a Blush Port. Clearly, this idea seemed so alien to them that the best I could do was to convince him that I was joking! I was, actually, serious, but the reaction to my suggestion implied that they thought I was seriously deranged and perhaps they questioned whether they had done the right thing hiring me! I was very amused, not surprised, to hear that Croft launched one around a decade later.

According to Robert Bower of Croft, whom I've had enormous pleasure of having on some of my tastings, the rose Port is doing very well in night clubs. He has had huge amounts of fun promoting the Port at very trendy clubs and only complains that there is no competition. As much as he has fun, he would like competition so that the rose Port becomes a category [and maybe he'll have a night off!].

The IDVP? I think they probably do care but I don't think they know how to handle an industry that is fragmented, not united. It needs someone to unite them. Unfortunately, at least one big Port Shipper is of the mentality that if something increases their own sales by 50% but, at the same time, increases the competitors sales by 25%, they'd prefer not to do that thing at all. If this mentality has changed, I'd love to know, but I doubt it has. It needs to, badly.

Only one day left before my appearance at Guest Corner comes to an end and I'd like to thank Roy for inviting me and all of you for reading and responding. I will be answering more questions as they appear here until the end of Sunday 27th.

I would like to invite all of you to post more questions and to visit our really fun facebook page http://www.facebook.com/broadbentselections I hope you'll become a fan of that so that you will see our regular posts on Port and all other things related to my life in wine. You can also follow me on Twitter and buy our wines, where legal, from our website http://www.broadbent.com

I look forward to seeing you join our Facebook and seeing more questions posted to me there. Thanks to you all.

Bartholomew,

I just wanted to say thank you for taking time out of your busy schedule this week to visit us and answer our questions. Your insight and knowledge was very much appreciated.

Bartholomew,

Although I have not been able to be an active participant during your stint here as our special guest on FTLOP, please know how much we've enjoyed reading your words of wisdom and also your wry sense of humor.

You've covered the bases of Port, Douro wine and Madeira ... much appreciated to say the least ... along with touting some of the great wines in your stable.

There is one area that has not been detailed and I know that many who read would enjoy your insight into the world of importing. Therefore, I am going to put forth a few questions to spur on your conversation and see if you will be willing to share your experiences with us:

* What is the greatest thrill you've experienced as an importer?

* What are some of the most significant challenges facing Broadbent Selections as an importing company that might not be something that most Port & wine lovers/collectors would be aware of?

* What are 2 or 3 of the largest obstacles you face as an importer, due to governmental regulations or outright interference (beyond the well-known archaic inter/intra-state shipping laws)?

* Do you see the Broadbent "brand" expanding and encompassing Douro wine someday ... or is this something you've even considered?

Last but not least ... in terms of Port & Madeira ... do you have any plans to add any new categories ... like a Colheita or LBV Port for example, or a 15 year old Verdelho (which I think would be a great addition to your Madeira selections)?


And on that note, I'll sit back and look forward to your informative reply.


Again, my sincere thanks for your participation and I hope that in addition to your twitter and tweeting around the web, you'll occasionally stop back in here to add your two cents ... as you have a lot of folks here who are clearly interested in what you have to say ... as well as your Port-folio and Madeira too.

Yes, I want to thank you as well.
Thanks!

Roy Hersh wrote:Bartholomew,

Although I have not been able to be an active participant during your stint here as our special guest on FTLOP, please know how much we've enjoyed reading your words of wisdom and also your wry sense of humor.

You've covered the bases of Port, Douro wine and Madeira ... much appreciated to say the least ... along with touting some of the great wines in your stable.

There is one area that has not been detailed and I know that many who read would enjoy your insight into the world of importing. Therefore, I am going to put forth a few questions to spur on your conversation and see if you will be willing to share your experiences with us:

* What is the greatest thrill you've experienced as an importer?

Whoa there! So many questions... I've been in back to back meetings all day, so sorry not to answer more promptly. I think I will answer one at a time because I may run out of time before I have to run out to dinner! If I don't get to answer them all, I will finish tomorrow or soon. So, this is the first:

* "What is the greatest thrill you've experienced as an importer? "

Wow, so many answers to this... the business side of it can be very exciting...

One of the most memorable was when I collected money from a cruise line, Premier Cruise's ship, the Rembrandt. This was in the year 2000. They had owed me a bill for two years and, including interest, it was then at $33,662. It happens that I was very close to their office in Florida, working in Orlando with a man called Mr. Hooker, trying to sell Port. I asked him if he could make a detour to Port Canaveral so that I could try to collect on a bad debt. We arrived at Premier's office and there was a security desk. I asked my Hooker to say that he was here to see the contact who had not been returning my calls for many many months. Whilst the security guard was trying to ascertain if we had an appointment, I asked if I could use the lavatory. I was pointed in the direction, getting me past the security, and instead I jumped into the elevator and pushed the top floor, which I imagined was home of the finance department.

Up there, I asked someone directions to Finance and they sent me there, then I asked to see my contact and was directed toward his office. Once there, he said that he couldn't talk to me and he walked away. I followed him and he went into another office and tried to close the door on me. I pushed it open and found myself in an office with him and two other men. Clearly, the President of the company. They asked me to leave and called the police. As I waited, I asked them why they weren't paying my bill. They just stared at me and didn't answer. When I said "are you going bankrupt?" the pupil in his eye flickered. I had my answer and saw the police cars arriving, so thought it a good time to leave. As the police were climbing the stairs and coming up the elevator, I was going down the elevator and escaped with my hooker!!! [I like saying that, if you can't tell].

The next few days, was frantic. I was working with Vicki Turner, my area manager in Tennessee and spent most of the long car journeys between cities on the phone. I found a Maritime lawyer, who found out that the Rembrandt was due to be in Halifax, Nova Scotia soon. He referred me to a Canadian maritime lawyer and luckily we'd delivered the wine directly to ship when it visited Oporto. Even luckier, Sogrape had the delivery papers with a signature. It showed that I had sold them 500cs of Vinho Verde and a rose.

It turns out that I was one of many creditors trying to collect millions of dollars! My maritime lawyer filed a court order to arrest the ship! it was a race against time before the ship sailed again but we managed it. The Canadian coast guard literally chained it up and all the passengers were ordered to leave! Nova Scotia's airport didn't have capacity for so many and most pour souls were stuck for several days.

Premier's bank lender, New York based Donaldson, Lufkin and Jenrette panicked because they had the first lien on the ship and once I had it arrested all the other creditors heard the news and started to try to take action too. DLJ could not repossess the ship, which would have happened at the end of that cruise when it was to be taken out to sea, away from authorities, unless I was paid. It was a race against time before all the creditors got their own acts together which would have prevented the bank from paying out. They paid me and then immediately repossessed all four Premier owned ships, including "The Big Red Boat". 2,800 people had their cruises ended abruptly. I was naturally thrilled to be paid.

There is a good epilogue to this story. WineShopper.com, who had a lot of my inventory at the time of their bankruptcy, on the last three days of business, the sole remaining employee, who had been given the task of sorting things out, spent most of his time trying to make sure I got all my inventory back. I thanked him profusely and said "it is so kind of you, I'm just a small company, how come you are taking such care to get me back all my wine?". He answered "you are the guy who arrested a ship and you know where I live"!

I guess, there was the other time when I had to take over a NY Yellow Cab that was taking me to the airport. The driver was so bad, hitting the side of the mid-town tunnel three times, that I made him get out and get in the back and I drove the taxi. It was quite a thrill on a business trip to commandeer a Yellow Cab and drive it!

I could write many chapters on the thrills of being a wine merchant!

Like your father, a great reconteur.

Roy Hersh wrote:Bartholomew,

* What are some of the most significant challenges facing Broadbent Selections as an importing company that might not be something that most Port & wine lovers/collectors would be aware of?

Significant challenges facing us as an import company? Probably the same as any other business.. personnel problems, intense competition, consolidation, the currency markets...in the early days, cash flow etc. But specific to what should cause concern to Port & wine lovers/collectors, that's a good question...

OK, in terms of Port...what should concern you Port lovers? I think I've alluded to some of these problems already.. basically, it is sad, that the Port industry has two levels...the intellectual and artistic OR the corporate and branded.

What is frustrating to me, and should be to you, is that some of the Port Shippers are content with becoming the Baccardi of Port. Yes, they allude to quality and do genuinely try to make great Vintage. But, what they really care about more than wine is that they gain market share and that their brands become the biggest brands. This would be fine and dandy if the competition was healthy. Behind the friendly facade, the competition is so fierce that it isn't.

There aren't many Port Shippers who really love Port enough that they would sacrifice their own brands to make the best Port in the world. Most would want to make the best Port in the world to strengthen their brand.

Some would do anything to make what they consider the best...even if it isn't commercially viable. That is an artist.

Other than Vintage, most of the Port Shippers could do a lot better. As a Port lover, I think that we should all demand more in quality from the Port Shippers. For instance, and just to show that I am not completely partial, I will include some of my competitors in what I consider the best Ports:

LBV: Quinta do Crasto, Smith Woodhouse, Warre's, Ferreira... these are the standards to which LBV should be demanded by the Port lover.

Tawny: Ferreira Duque de Braganca 20 year old, Niepoort Colheitas... these are tawnies that set the standards and we should not accept the mass produced 20 year tawnies. We should demand quality...

So, why is this a problem for us and why should it concern the Port lover? Well, basically, we face the competition of big branded Ports. More and more, they are becoming branded. This makes it difficult for the small importer of smaller brands. Eventually, if the consumer accepts the commercial brands of Port and these brands of Port become so domineering in the market place, the smaller companies will disappear, along with choice.

Although the difficulty for wine is similar, big brands do dominate, but there will always be the new artisenal winery. In the circumstance of Port, the laws are so prohibitive against new companies being formed that, as the big companies gobble up the market share from the small companies, the small ones will go out of business or be sold to the bigger ones and there won't be any new companies to take their place.

As wine becomes more popular, brands grow. As wine becomes more popular, new wineries are started by passionate enthusiasts. That is very healthy. It is a machine that works in the favor of brands and wineries. The more big brands develope, the healthier, because it introduces people to wine and they, eventually, graduate to seeking new smaller production brands.

As Port becomes popular, brands grow. However, with the restrictive laws, new Port producing wine companies cannot be started. So, the danger is that we'll end up with big commercial brands and nothing to replace the void they've left behind.

When the owner of a wine shop in America selects a wine to stock, that wine buyer has a choice of over 100,000 wines and the wines choices are growing. With the limitations on the production of Port, if brands continue to dominate and grow, the choice available will diminish.

Roy Hersh wrote:Bartholomew,

* Do you see the Broadbent "brand" expanding and encompassing Douro wine someday ... or is this something you've even considered?

You might not have noticed but Frederick Blais asked a similar question. He knows.

However, I am not ready to discuss this topic. The answer is, yes, I've considered it. To answer Frederick's specific question, no, I'm not ready to talk about the topic.

Roy Hersh wrote:
Last but not least ... in terms of Port & Madeira ... do you have any plans to add any new categories ... like a Colheita or LBV Port for example, or a 15 year old Verdelho (which I think would be a great addition to your Madeira selections)?

Yes, of course, we are only a young company, not old enough to have a 20 year old Port, unless we buy one, but we prefer to have more of a say in how it was originally made. Yes, we'd love to have a Colheita sometime.

We have special plans for a never before done Madeira. Can't say anything else now. Specifically, a 15 year Verdelho, no, that hadn't occurred to me.

LBV Port... actually, we've already done several vintages of Broadbent LBV, produced for us by Quinta do Crasto. We sold them exclusively to one company but the volumes were significant by comparison to our production of Auction Reserve or Vintage.

Roy Hersh wrote:Bartholomew,

* What are 2 or 3 of the largest obstacles you face as an importer, due to governmental regulations or outright interference (beyond the well-known archaic inter/intra-state shipping laws)?

Too late...I'll answer this soon.

Wow! Thanks for the informative answers. Can't wait for your others.

BTW, can I shamelessly plug Quevedo as a small producer to watch out for....did I mention they are looking for an importer. Very nice people who make really good Port that should be sold here in the US. Ok, had to throw that out there for our fellow 'er Oscar Quevedo

Bartholomew Broadbent wrote:...I could write many chapters on the thrills of being a wine merchant!

Sounds like an episode from "Mission Impossible". Great story...

We have special plans for a never before done Madeira. Can't say anything else now. Specifically, a 15 year Verdelho, no, that hadn't occurred to me.

Bartholomew,

I am serious about this. I think it is a great opportunity with a hole that needs filling. I am not just talking about Broadbent (but you can be the first!) however, this would be a fantastic addition and something that I'd help promote if it was to come to fruition and priced affordably for people to buy by the case.

Roy

Bartholomew Broadbent wrote:

Roy Hersh wrote:Bartholomew,

* What are 2 or 3 of the largest obstacles you face as an importer, due to governmental regulations or outright interference (beyond the well-known archaic inter/intra-state shipping laws)?

That is a good question... put it this way, it is easier to ship a gun than wine, it is easier to ship a bottle of wine to anywhere in the world than to most US States. It is very easy to find wines to represent, almost impossible to get it sold. Consolidation in the market of distributors makes like tough.

I don't know any other business so what may seem like large obstacles to most people, we are so used to that they don't really bother us anymore.

One thing I don't do is offer to help people who say they've "bought 5 cases of wine in Europe, can Broadbent Selections import them?" It would be cheaper to buy a ticket to Europe and fly over there to bring them back in the hold of a plane as luggage. Basically, there is so much compliance and paperwork involved that it wouldn't make economic sense.

Sorry, I can't really think of a good answer to that question

We have special plans for a never before done Madeira. Can't say anything else now. Specifically, a 15 year Verdelho, no, that hadn't occurred to me.

Bartholomew,

I am serious about this. I think it is a great opportunity with a hole that needs filling. I am not just talking about Broadbent (but you can be the first!) however, this would be a fantastic addition and something that I'd help promote if it was to come to fruition and priced affordably for people to buy by the case.

Roy

I'd be all over that as well!