Shay Waterworth reports on the problems currently assailing the traditional fortified wine
There’s been a decline in sales of port wine over the past 20 years, with 7.3 million cases sold in 2023 against 8.7 million in 2013 (Vinetur), and it continues to drop at a similar rate today. Ultimately, the fortified wine of the Douro Valley is high in alcohol and high in sugar, neither of which are in vogue right now. The lack of sales is having a knock-on effect for producers, and this could spell danger for the global availability of the industry’s most recognised fortified wine.
The Douro Valley is tightly regulated by Vinhos do Douro e do Porto (IVDP) and port wine is dominated by the major houses such as Symington Family Estates (Cockburn’s, Graham’s, Dow’s, Warre’s), Sandeman and Taylor’s. Between them they buy grapes from roughly 6,000 growers and production is controlled by the IVDP via the benefício, an annual quota system that limits how much grape juice from each vineyard can be turned into port wine.
According to a report by Vinetur: “Most port houses end up with a surplus of grapes each year, due to the IVDP’s cautious approach, which is designed to avoid the market being flooded with bargain-basement port.”
The IVDP set the authorised amount of port wine for the 2025 harvest at 75,000 barrels – 15,000 barrels fewer than in 2024 and 29,000 fewer than in 2023, representing a 16% decrease and the lowest level of the current century.
In theory a decrease in production isn’t a disaster if the value of port goes up and the growers are paid in accordance. However, according to the same report by Vinetur: “The average price paid for grapes destined for port wine production has remained around €1,000 per barrel since the early 2000s, despite rising production costs.”
Knock-on effects from slowing demand and smaller allocation are that the underpaid growers don’t see the value in harvesting their grapes, instead leaving fruit on the vine or simply selling the land. Growers need fairer prices for their grapes, otherwise if demand returns in the future and there’s a lack of fruit then there’s a potential problem. However, right now a solution to surplus grapes is the biggest concern.
The Portuguese government has acknowledged the crisis through its Ministry of Agriculture and announced an immediate support plan for small and medium-sized growers with surplus grapes. The plan includes financial aid for those who deliver excess grapes for distillation, however recipients must agree to reduce their vine acreage and switch to other crops.
Slowing demand
These are potential solutions to the effects of the slowing demand, but what about solving the slowing demand itself? Charlotte Symington, fifth-generation family member of the eponymous estate, believes tawny is a style best placed to engage with modern consumers.
“Tawny is the fastest-growing category within port, both in volume and value, reflecting the broader trend of drinking less but better, which has been exciting to see,” says Symington.
“The recent launch of our Graham’s 40, 50 and 80-Year-Old Tawnies has given us a strong platform to capitalise on that momentum, and the response has been very positive. Between our two main port brands, Graham’s and Cockburn’s, we’re able to meet a wide range of occasions and budgets, which has also helped us engage a new generation of consumers.”
In response to growing demand Cockburn’s also launched Vat & Barrel Reserve Tawny Port, a blend of wines aged in large vats, which preserves the fruit-forward wine in a more modern style.
“Continuing to keep port relevant is our biggest challenge right now, helping a new generation of drinkers see it as something for them that goes beyond Christmas. Continuing to de-seasonalise the category is central to this. On top of that, the UK’s 2024 alcohol duty reform hasn’t helped from a pricing perspective, adding cost pressure at a difficult time.
“Education and visibility are what we’ve been focused on over the last few years, across both trade and consumer channels. On the trade side, our Graham’s Ambassador programme invites sommeliers and restaurants into a community built around exciting exclusive releases and trips out to Porto and the Douro, while the annual Graham’s Blend Series Cocktail Competition engages bartenders directly with the category.
“On the consumer side, we’ve sponsored Primavera Sound, one of Porto’s largest music festivals, and built bartender partnerships to put port in front of new audiences in contexts they wouldn’t necessarily expect. Alongside this, we’re making sure our communications and content showcase port in ways that feel current and engaging, rather than purely traditional. We don’t want to change what port is, but we do want to continue to evolve how people engage and connect with it.”
It’s clear what the port category needs. It needs to attract new consumers, and it needs to look after the wine-growers who produce its valuable grapes. There are solutions to both of these problems, but now it’s time for the major houses to act collectively.
