ADRIAN BRIDGE

[Paul Fountain]

Thanks for taking the time to answer some questions Adrian.

My first question is around declarations
My understanding was that 2015 was a pretty decent vintage, and with 2016 and 2017 being generally declared, How close was 2015 to being declared by any of the producers in your portfolio and do you see a time when 3 declarations in a row would be possible? How much of it is Quality and how much Commercial considerations?

regards

Paul

[Thomas V]

Hi Adrian,

Thank you for taking your time to indulge us.

With the release of 15', 16' and 17' it seems to me and others in my port wine drinking crowd that these young VP's seem to be much more approachable then previous vintages. Smooth tannins from the get go and fairly open and enjoyable right away.

Is this by design of the winemaker's (Company strategy) or an expression of the harvest? I fear for the longevity of these vintages 30+ years down the road. As I am one that prefer my VP's between the age of 30-50 years. It seems to be a trend across the board for the different shippers. We speculate that this a shift designed to allow VP's to be drunk much younger than they have been historically to satisfy market demand.

What is your take?

[Eric Ifune]

Thank you for spending time with us here.
My questions are, how much has wood aged Ports become part of your sales? Are you looking for more stocks and how available are they?
Thanks again!

[Adrian Bridge]

Thanks for the question.
Let us remind ourselves that Crusted is a Reserve Ruby that is bottled and then aged - legally now for at least three years. There was a period when it was not approved and did fade away.
Since it is now approved the volume remains low. Why?
I think that the price premium probably does not justify dedicating the cellar space to build up stocks and the process of predicting stock needs is tough. Unlike VP which can last well in the cellar - if the economic cycle turns down- crusted is best sold after three years of cellaring.
However, I think there is a broader point here. VP or SQVP offers a premium bottled aged Port that has a price premium AND is sold with a sense of place - it’s terroir. This is certainly attractive to the many new independent SQs - more so than Crusted would be. For the bigger brands who have VP/SQVP and ranges of premium reserve rubies Crusted is more of a service to specific customers than some great new market opportunity.
Port is complex and hard for consumers so although Crusted Ports are very fine I do not see them as a growth area.
Best wishes, Adrian

[Adrian Bridge]

Thank you for spending time with us here.
My questions are, how much has wood aged Ports become part of your sales? Are you looking for more stocks and how available are they?
Thanks again!

Dear Eric.
By definition wood aged Ports are everything that is not Vintage. Vintage is about 1.5 to 2.0% of the industry.
For us it depends on if we have a declaration or not but we would rarely exceed about 7% of sales by volume as Vintage.
Thanks. Adrian

[Adrian Bridge]

Thanks for taking the time to answer some questions Adrian.

My first question is around declarations
My understanding was that 2015 was a pretty decent vintage, and with 2016 and 2017 being generally declared, How close was 2015 to being declared by any of the producers in your portfolio and do you see a time when 3 declarations in a row would be possible? How much of it is Quality and how much Commercial considerations?

regards

Paul

Dear Paul
Thanks for the question.
As we have the opportunity to taste in the second Spring after harvest we can compare between years. It is true that the 2015s were very good but we judged 2016 to be better. The point is that we look at absolute quality and relative quality.
2015 had the absolute quality to be declared but we felt 2016 were better so the 2105s lost out on relative quality.
How does that explain 2016 and 2017? Well the styles were different. Both had the absolute quality but because the styles of year were so different the relative quality was not important.
Three in a row. By this you means classic vintages rather than single quintas. Because if you broaden the definition to include both then from 1994 to 2005 we made Vintage Port every year - 12 in a row.
If we just look at Quinta de Vargellas ( a single Quinta like Quinta do Noval) then three in a row is common.
If you only wish to count classics then an early example was Croft 1784,1785 and 1786. Croft was always busy as they did 8 classics in a row from 1827 to 1834!
Finally, it is always quality for us not quantity. Hence when we made the 2007 we launched that about 8 months after the collapse of Lehman’s or the 2011 which when it came out in 2013 it was at the height of the economic crisis.
Best wishes Adrian

[Adrian Bridge]

Hi Adrian,

Thank you for taking your time to indulge us.

With the release of 15', 16' and 17' it seems to me and others in my port wine drinking crowd that these young VP's seems to be much more approachable then previous vintages. Smooth tannins from the get go and fairly open and enjoyable right away.

Is this by design of the winemaker's (Company strategy) or an expression of the harvest? I fear for the longevity of these vintages 30+ years down the road. As I am one that prefer my VP's between the age og 30-50 years. It seems to be a trend across the board for the different shippers. We speculate that this a shift designed to allow VP's to be drunk much younger than they have been historically to satisfy market demand.

What is your take?

Dear Thomas
I think we are getting better at viticulture and Vinification which is making better VPs so no we have not changed our style.
However, some other houses have made a deliberate change to include more ripe Touriga National in their blends which is a change.
I think ours will last just as well. Today I tasted some 2003s which were still youthful and very expressive despite now being 16 years old!
Then again I had the Fonseca 1985 on Friday night and that was also amazingly fresh and is now 34 years old.
Best wishes Adrian

[Julian D. A. Wiseman]

Questions for Adrian (rather in my style):
• In the new Croft super-cuvée, rather silky, what is the accent or diacritic?
• What proportion of wine writers are able to type an e-macron (“ē”)?
• Really, was this a good detail?

[Jonathan Huber]

Please forgive the painfully obvious question - I (today!) scored a case of TF VP 1994. I thought I would take the opportunity to ask the master. What is your preferred decant time on this? The tasting notes are all over the place, ranging from 3 to 18 hours.

[Andy Velebil]

Mr. Bridge, thank you for taking the time out of your busy schedule to join us. It is very much appreciated.

My question has to do with Port-cocktails and the younger generation. Being the first company with a rose (Pink) and the subsequent marketing of Port-Cocktails towards young hip bars and events that many companies have followed, has that marketing translated into a significant amount of younger people buying other types of Ports? If so, what are they typically transitioning to after Port-cocktails?

[Glenn E.]

Thank you very much for taking the time to come to FTLOP and answer our questions. We are very happy to have you join us! Port wine seems to be a uniquely friendly and approachable business. Where else would the CEO of a major corporation take the time to talk to the end customers! Bravo, and thank you again.

I have always thought of Vintage Port as the pinnacle of most producers' portfolios, and I believe that most producers feel the same way (aside from those who specialize in Tawny Ports, of course). For a very long time, the only "super cuvée" that anyone had ever heard of was Quinta do Noval's Nacional. Now, practically within the blink of an eye, there are several. Taylor has Vargellas Vinha Velha and Croft now has Sērikos, among others.

What is the vision for these Ports, and how do they fit into a brand's portfolio specifically in relation to the brand's fully-declared Vintage Port? Their pricing suggests that they should be considered "more premium" than the portfolio's Vintage Port, but is that really the intent?

[Adrian Bridge]

Questions for Adrian (rather in my style):
• In the new Croft super-cuvée, rather silky, what is the accent or diacritic?
• What proportion of wine writers are able to type an e-macron (“ē”)?
• Really, was this a good detail?

Dear Julian
Thanks for the question.
The Sērikos has an emphasis on the ‘e’ for pronunciation but is probably a detail that most people have missed. Well done you for raising it. Most journalists have focused on the great quality of the wine and on learning why we have used Silky (tannins and silk worms at Roeda).
All details are presumably considered good otherwise we probably would not have done it. However, it not a big thing!
Best wishes
Adrian

[Adrian Bridge]

Please forgive the painfully obvious question - I (today!) scored a case of TF VP 1994. I thought I would take the opportunity to ask the master. What is your preferred decant time on this? The tasting notes are all over the place, ranging from 3 to 18 hours.

Dear Jonathan
Well done on the acquisition.
I differ from Roy on decanting times. He tends to promote the idea of a longer time. I tend to decant before dinner and either leave the stopper in (older vintage) or out (younger) of the decanter. With the 1994 it is out. From decanting to serving for me is 3 to 3.5 hours.
Thanks. Adrian

[Phil W]

Hi Adrian,

I would like to ask for a little more background on your strategy with the Krohn acquisition, in particular with regard your general approach to how you planto sell the Krohn Colheitas going forward. I understand that some may (or may not) be being used as part of the series of Taylor 50th anniversary colheitas that are currently being released each year; beyond that I'm wondering whether you intend to continue to sell any of them (perhaps the best years?) separately from the anniversary market, either under the Krohn, Taylor or other brands? (I expect this may depend on volumes acquired across the different vintages, or other factors; please feel free to interpret the question as broadly as you feel appropriate for public discussion)

[Adrian Bridge]

Mr. Bridge, thank you for taking the time out of your busy schedule to join us. It is very much appreciated.

My question has to do with Port-cocktails and the younger generation. Being the first company with a rose (Pink) and the subsequent marketing of Port-Cocktails towards young hip bars and events that many companies have followed, has that marketing translated into a significant amount of younger people buying other types of Ports? If so, what are they typically transitioning to after Port-cocktails?

Dear Andy
Thanks for this.
Cocktails are helping sales - we have reintroduced Taylor’s Chip Dry to USA this year due to demand.
Cocktails have created new consumption moments and, we hope, new consumers.
Pink or Rose Port was my contribution to the Port industry and about 14 companies now make it. It is about 1% of Port so it has helped - grown Port sales without cannibalizing other Port sales.
If the consumers just stay with cocktails that is fine as it is certainly helping to have more Port listed. It may make them more comfortable with Port and maybe more disposed to try others. However, as part of a step journey, which your question implies, it is harder to see.
Best wishes, Adrian

[Adrian Bridge]

Hi Adrian,

I would like to ask for a little more background on your strategy with the Krohn acquisition, in particular with regard your general approach to how you planto sell the Krohn Colheitas going forward. I understand that some may (or may not) be being used as part of the series of Taylor 50th anniversary colheitas that are currently being released each year; beyond that I'm wondering whether you intend to continue to sell any of them (perhaps the best years?) separately from the anniversary market, either under the Krohn, Taylor or other brands? (I expect this may depend on volumes acquired across the different vintages, or other factors; please feel free to interpret the question as broadly as you feel appropriate for public discussion)

Dear Phil
Thanks for this one.
We do have a range of Colheitas for Krohn which we will continue to sell.
It is true that when we bought the company it had significant stocks of Port over 40 years old (in excess of 100,000 liters) but did not have a 40 year old product. We did chose to bring some of those wines to market with the Taylor brand. Remember Taylor’s sells in about 103 countries whereas Krohn was less than 20. Using Taylor’s brought the wines to a greater audience - the 1863 being the best example.
The 50 year range for Taylor’s does not all come from Krohn - the is a misconception that ignores the fact that Taylor’s has been a leader in Aged Tawny for years. Indeed Dick Yeatman (who died in 1966) loved making Ports but was not always happy selling them. He left a vast stock of great old wines in the business. He did sell to other companies in the trade who then sold under their own brand.
So expect Krohn to have a range of colheitas and Taylor’s to continue with the 50 year offering. Supply depends more on what wines we have than it does on demand - by definition.
Kind regards, Adrian

[Adrian Bridge]

Thank you very much for taking the time to come to FTLOP and answer our questions. We are very happy to have you join us! Port wine seems to be a uniquely friendly and approachable business. Where else would the CEO of a major corporation take the time to talk to the end customers! Bravo, and thank you again.

I have always thought of Vintage Port as the pinnacle of most producers' portfolios, and I believe that most producers feel the same way (aside from those who specialize in Tawny Ports, of course). For a very long time, the only "super cuvée" that anyone had ever heard of was Quinta do Noval's Nacional. Now, practically within the blink of an eye, there are several. Taylor has Vargellas Vinha Velha and Croft now has Sērikos, among others.

What is the vision for these Ports, and how do they fit into a brand's portfolio specifically in relation to the brand's fully-declared Vintage Port? Their pricing suggests that they should be considered "more premium" than the portfolio's Vintage Port, but is that really the intent?

Dear Glenn
Thank you for the question.
We started Vargellas Vinha Velha because in 1995 we were thinking about replanting some old vines. When we tasted what we made off them we thought about how to keep them. This meant making some more income off them. Remember that it takes 4 vines to produce a bottle of VVV. This is why we priced them high. They were meant for an audience looking for a small batch special Vintage.
We made Serikos in 2017 because the wine was so extraordinary. Again it is just old vines and very low production.
Some companies have produced special wines but not from old vines. This is more about marketing and calling attention to the brand/property. That is OK but can confuse consumers as much as it does wine critics.
I am not sure that ‘more premium’ is the right thinking rather that it is different. Certainly I think VVV demonstrates a greater density and complete expression of the Vargellas terroir.
It was Jancis Robinsons’ calling out of Vargellas Vinha Velha as ‘possibly the best wine made anywhere in the world in 2011’ that was arguably the reason that all the industry’s 2011s became so sought after so clearly they serve a purpose.
Kind regards
Adrian

[Paul Fountain]

Hi Adrian,
A second question from me

It seemed that the start of a boom in tourism in Portugal and Porto in particular coincided with the success and release of the 2011 vintage ports. At least, for most of us posting here, it probably seemed that way. I'd imagine that with the hotels as well as the port business, you'd be in a fairly unique position to comment on how that vintage impacted the overall tourism picture.
Am I reading too much into the impact of the wine industry and that vintage in particular on tourism in Porto? Would the increase in tourism have happened anyway? And what do the 2016 and 2017 general declarations mean for tourism in the Douro and Porto?

regards

Paul

[Adrian Bridge]

Hi Adrian,
A second question from me

It seemed that the start of a boom in tourism in Portugal and Porto in particular coincided with the success and release of the 2011 vintage ports. At least, for most of us posting here, it probably seemed that way. I'd imagine that with the hotels as well as the port business, you'd be in a fairly unique position to comment on how that vintage impacted the overall tourism picture.
Am I reading too much into the impact of the wine industry and that vintage in particular on tourism in Porto? Would the increase in tourism have happened anyway? And what do the 2016 and 2017 general declarations mean for tourism in the Douro and Porto?

regards

Paul

Dear Paul
Coincidence.
In 2009 we started a major PR activity in 9 markets promoting the destination of Porto. We have been spending 450,000 euros a year on this activity for a decade.
By 2013, when the 2011s were launched, we had therefore already spent 2 million and been in FT with 5 articles, in the New York Times and many other publications.
You will recall Greece had problems which hurt tourism and the general economic weakness meant people were traveling less distance for holiday. However, it was the Arab Spring that encouraged people to go to safe destinations of which Portugal is considered second after New Zealand.
The growth of tourism is probably now slower than the rate at which hotels are being built. Porto will have 22% increase in hotel beds (not counting AirBnB) and in the historic area of Gaia 13 projects are planned, many under construction. This probably expands demand IF the hotels that are coming do marketing rather than expect to live off demand created by others. If not, there could be softness and rate reduction/price war. In any event, we will offer them things to do.
Best wishes
Adrian

[Moses Botbol]

Adrian:

Do you consider the Taylor VVV and equal competitor to Nacional and if not, do you think they'll be on equal footing (in the consumer's eyes) in the future?

Has Taylor's Tawny profile changed at all in the last 10-15 years? It "ok" to me back then, but I really like it for the last 5-10 or so years.

Has TFP considered motorsports or any other sporting sponsorships?