Port producers are increasingly moving into table wines as an additional revenue stream. Roger Morris investigates how brands are juggling the two categories. Following two decades of making major changes in their business models to keep pace with the changing global marketplace, Port producers may now be on the cusp of a new golden era. According to Research Dive, between 2021 and 2028 Port revenues will enjoy a compound annual growth rate (CAGR) of +6%, on track to reach US$1.025 billion in by 2028. Future Market Insights is even more optimistic, predicting an 8.1% CAGR over the next 10 years to reach US$2.011bn by 2032. The first 20 years of the current century saw Port volumes go down, but value shoot up. New products, such as rosé Port and pre-mixed cocktails, were introduced, while other product categories, such as age-dated tawnies and old colheitas, rose rapidly in both volume and value. As the labour market tightened, wineries became more mechanised, and new environmentally-friendly facilities were constructed. For most Port houses, increased production of table wines became a welcome income stream. Today, the Port business finds itself facing several opportunities and challenges that may determine whether those rosy CAGR predictions will indeed come true. There is widespread agreement among Port producers on some of these topics while, on others, there is controversy. The fact that Port revenues have continued to rise while volumes have declined shows that premiumisation of Port is an established fact. But
This Article was originally published on The Drink Business - Wine
