Digitally engaged wine geeks may have noticed the port for a new generation hashtag doing the rounds. It’s catchy, and acknowledges a mature industry’s attempts to position itself in front of a new demographic of drinkers. With more than 300 years of international trade behind it however, maintaining tradition while staying relevant is a delicate, and often cautious balance.
Of course, there is no such thing as a new generation. The term is broad, and consumers behave according to many different motivations. Language, culture, location, and a million other things combine to influence purchasing decisions. Nevertheless, the slogan works and provides a useful umbrella term for the collective marketing initiatives of the Douro Valley’s fortified wine houses. In this notoriously conservative niche of the wine trade, creativity and experimentation are now tentatively poking their heads above the parapet.
The impetus behind the phrase lies in the subtle accusation that the port industry has frequently ignored younger consumers in favor of older drinkers. Its image, deeply entwined with the social conventions of the British upper classes, has long exuded a streak of elitism. At the top end of the business these associations still pay dividends, as an aspirational audience continues to enjoy the prestige and trappings of vintage port. More on that later. At the volume end however, consumers can be unsure where port fits into their social habits, and with a wealth of choice available to them, are prone to leaving it on the shelf.
Although each market has its quirks, these diverging views can generally be found in the numbers. Entry level categories such as ruby and young tawny have been in steady decline for years, while the very best vintage ports, single quinta labels, and rare tawnies are more popular than ever before. Roughly speaking, premium sales now equate to 50% of the value of all port sold. By contrast, according to the Port and Douro Wine Institute (IVDP), volume of port sales globally is down to 7.3 million cases, from 10.5 million in the year 2000. With that in mind, the model is increasingly tilted towards affluence.
As we’ll see however, there’s a lot more to this story than meets the eye. Port brands big and small are working on diversifying their offerings through a combination of new product releases, category experimentation, engagement with the cocktail world and a greater focus on emerging markets. Tourism is strengthening Portugal’s territorial brand, and with Porto being the country’s second biggest city, the culture of port is growing in international prominence. Overall consumption of this sweet, fortified wine may have fallen in recent decades, but several positive trends are clearly underway.
Here are a few thoughts on what’s happening in the world of Port.
The Premiumization of Port
In line with most sectors of the drinks business, port is experiencing its own shift in demand. People are drinking less, but trading up. In the context of port, this typically means vintage ports – fortified wines produced from a single year and aged in bottle. It was understood, and still is, that these represent the very best ports made, and are capable of evolving and improving for decades. This scenario used to be elevated further by the custom of declaring a vintage only two or three times a decade.
Although most houses declare most years now, quality remains at the forefront of the industry’s planning. Dirk Niepoort, known in the wine trade as an innovator for his pursuit of a lighter style of vintage port, sees the premium offerings as imperative to holding consumer’s interest. “We have to continue to make better wine, and less of it.” He elaborates that “port shouldn’t be an every day drink. We should recognise that drinking it should be a special experience.” It’s a simple approach, but again, one that seeks out a certain consumer profile.
Charlotte Symington, the fifth-generation to oversee Symington Family Estates, is also adamant that “premiumisation is the future of the port category.” Her strategy is to continue releasing small quantities of rare vintages. “We focus on wines that have aged in our cellars in impeccable conditions and these generate plenty of excitement amongst our customers and sommeliers.” The scarcity and longevity of the best ports undoubtedly appeals to the collector class.
With this in mind, the company has launched a range of luxury offerings in recent years, notably through the Graham’s brand. In celebrating its 200th anniversary, 30 made-to-order Bicentenary Collection Cabinets were released at a value of $30,000 each. A series of single harvest tawny ports also emerged, including 10 of the last remaining bottles of Graham’s 1948 vintage ports to celebrate King Charles’ birthday in 2023.
Adrien Bridge, CEO of the Fladgate Partnership, owners of the well known Taylor’s brand, but also Fonseca and Croft, says “there’s very little future in selling alcohol purely for the hit of alcohol.” The company launched Scion in 2010 as one of the oldest and rarest aged tawny ports ever sold and has since seen a renaissance in the category, leading to the official establishment of 50 and 80 year old iterations. Bridge explains that “aged tawny is very undervalued for the profile it offers and the age it has.” The availability of these wines has breathed new life into the how consumers perceive tawny ports.
Taylor’s bottle their top end releases to order and as such can play around with size, shape and marketing, giving them the flexibility to release singular, historic wines in an appropriate way. Taylor’s Port 1863, drawn from some very rare and valuable cask aged ports helped add further weight to their premium range. Charlotte Symington is also benefiting from a similar approach and admits “this is an area where we have had great success and visibility with our 4,5L bottles of Graham’s aged tawnies.”
Large format bottles are undoubtedly having a moment of resurgence. Ramos Pinto, founded in 1880, has been working with in this capacity for decades. Today however, their luxury offering includes magnums of vintage ports from both 1982 and 83, as well as very limited quantities of 1,500ml, 3,000ml and 9,000ml formats of old tawnies. These typically provide theatre at the end of Michelin starred dining experiences and are listed in restaurants such as Raffles at the OWO in London.
Jorge Rosas, President and CEO of the company says “The fact that these bottles are highly visible when served at the end of a meal (with cheese, dessert or simply as a digestif) means that many other restaurant customers are also keen to discover these delicious pairings.” Having the option to decide when to sell and how to package these wines is extremely useful. Bridge admits, “who would’ve thought that 50 years ago you could sell a 50 year old tawny. You just wouldn’t have made it if that was the intention.”
The Internationalisation of Port
Beyond making port better (and more expensive) there have been strong efforts to extend awareness beyond traditional customer bases. Zoe Graham, who runs the family-owned Churchills brand says “We are a global business. In new Asian markets such as South Korea, port is only starting to be introduced to a whole generation(s) and this will become increasingly important. There isn’t the same baggage that you’ll find surrounding port with younger consumers in the UK, for example, where images of passing port around with the cheese course in closed circles of private members clubs loom large.”
Despite the growth and interest from elsewhere, the UK remains one of Port’s key markets. In 2023 it accounted for 12% of global sales. Compare this with just 5.1% percent in the U.S. In most states, port awareness and knowledge is still really low, and closely tied to either steakhouses or formal dining occasions. The opportunity is strong however. Ben Himowitz, who runs Churchill’s with Zoe, thinks the U.S. is the future. “While this means that it’s not a fast-growing or dynamic category, it also means that port is a blank canvas ready to be activated. There is none of the cultural or generational baggage that we see in the UK, and in the post-Covid world we’re seeing an American global travel awakening.”
Americans are now tied with the UK for most foreign visitors to Portugal, and in Churchill’s tourism sites they made up 40% of guests in 2023. He believes large scale cultural engagement is around the corner and will leave consumers seeking out Portuguese food and drink when they see it stateside. “Obviously, port will not be the only beneficiary of this trend – vinho verde is already exploding – but I predict our first category tailwind in 30 years and we’re ready to seize it.”
Creativity and younger consumers
Brand and category preservation remain paramount, and as such, Port’s highly regulated governance can sometimes feel as much a hindrance to innovation as a protector of legacy. Nevertheless, there are signs of flexibility and evolving strategies such as de-seasoning port through the ready to drink market (RTD), and engagement with the cocktail world are helping to draw in a younger generation of drinkers who are inevitably thinking about port for the first time.
Zoe Graham acknowledges that it is interesting to consider what we mean by new generations. “I think in more mature markets it’s really about re-introducing the traditions in ways that make sense to a younger consumer. For instance, we can still recognise that port fits perfectly at the end of the meal (along with other occasions) but offer the consumer something exciting and new – from interesting dessert pairings to the simple suggestion of serving an aged tawny chilled.”
She feels that vintage port is the real challenge for her generation. “While the segment is still being held up by long-time drinkers and collectors, that group of buyers is getting older, and we’re not seeing the same engagement from our contemporaries.” Some of this is driven by a lack of cellaring options for younger drinkers and some stems from a lack of education around vintage history and treatment. She continues, “this challenge is something we need to work on as an industry through a combination of education, done in an accessible and enjoyable way, and tech innovation, particularly to address the cellaring challenge.”
With barriers to entry fairly high, and volume in long term decline, launching a port brand is not a drinks entrepreneur’s first choice for disruption. Marco do Sa has injected his personality into his Martins de Sa brand however and uses Instagram as his primary communication method. He can be credited with igniting the port for a new generation campaign, and seeks to communicate with a laid back attitude to port. Known for his slightly provocative communications, de Sa states, “our main objective is to attract a new generation to the category through a relaxed and creative approach, using our distinctive, easy to enjoy liquids to achieve this. This simple position directly reflects Martins de Sá’s unconventional history and modern-day origins.”
De-seasoning Port
One of the most important pieces of consumer education the Port trade has invested in over recent years is the notion that the drink is not just for Christmas. It’s true, quality ports lend themselves to cold, winter nights and festive fireside experiences. Nevertheless, the association can stifle interest throughout the year. Its growing international presence should help erode this stereotype, particularly in non western cultures, but for now the intuition that port comes out for the holidays and alongside winter cheese boards is an enduring limitation.
Charlotte Symington says “we are obviously extremely aware of how important Q4 and the run up to Christmas is and it would be unrealistic of us not to consider this as a key time of year for our activations and initiatives but given how versatile port is, we have also been looking at ways to extend the port moment beyond the festive period.” Perhaps the most successful development in this regard is the arrival of white port.
Produced from a range of different Douro white varieties, white port has been around for a long time. Only recently has it entered the conversation with staying power though. It provides a fresher, summer friendly character, but more importantly, versatility. Symington is excited by the growing interest in white port & tonic and its potential as an aperitif, welcoming the opportunity to “open the conversation to a new audience – buyers and consumers alike.” It has also become a favorite amongst tourists descending on Porto in the summer, with most bars and restaurants now offering port & tonic on their menus. Zoe Graham agrees. “It has been great for creating a gateway into our category and providing a signature experience for those visiting Portugal.”
Marco De Sa, who has used white port as a fun way of engaging bartenders before steering them towards his classic rubies and tawnies says “white port & tonic offers a unique twist on the classic gin and tonic, which has been a popular drink for many years. It has gained traction among cocktail enthusiasts and mixologists who are always looking for new and interesting flavour combinations.” Symington adds that due to its lower alcohol, “white port has been really well received – it is half the ABV of a Gin & Tonic for example and in this climate, is attractive for people with an eye on their alcohol intake.”
Rosé port is also a talking point. In a nod to engaging with a broader audience Croft were the first to launch a pink version, positioned every bit a consideration for cocktails as a standalone port. Symington don’t produce one, but De Sa has also incorporated a pink port into his range on the basis it can be an enjoyable and versatile beverage. Although he’s not yet convinced the commitment is there from the wider industry to really articulate how and where to use rosé port, it’s clear we’re still in an experimental phase, best highlighted perhaps, with an anecdote from Houston, Texas. Bridge, baffled by the disproportionate sales of Croft rose port in Little Bigs, realised, “they were innovating the innovation, using it to make adult slush puppies called Rosé without Rules.” Make of that what you will. It’s certainly a more relaxed vehicle for selling port.
Port in cocktails and the ready to drink category
Beyond mixing white port and tonic water, or rose and ice, utilising port as an ingredient in the expansive world of cocktails is an intriguing commercial opportunity. It’s also a controversial subject. For some it encourages visibility and communication channels with new audiences, for others it is a potentially damaging route that could, over the long term, de-value port.
Zoe Graham says, “we believe port should be fun – and cocktails are fun. As the craft cocktail space has matured, I think the stigma of mixing has disappeared.” At their own Churchill’s 1982 bar in Porto, they use port in classic cocktails, such as a Manhattan and Boulevardier made with tawny port, and even a spicy Michelada with white port. By way of lightening the mood, De Sa’s digital output often incorporates his customer’s cocktail creations.
Symington points out “this year Graham’s will host the 3rd year of the Blend Series Cocktail Competition, where we are challenging mixologists from around the globe to prepare a new cocktail featuring either Graham’s Blend Nº5 or Nº12 – we have 17 countries taking part, which is fantastic recognition of the value the world of mixologist sees in port.
Nevertheless, a famous quip in the port trade sums up the reluctance to totally engage. Can port be used in cocktails? “Sure, as long as it’s not my port” goes the response. Zoe Graham isn’t totally swayed either. “I don’t think cocktails are going to solve some of the fundamental challenges of our category. The global craft cocktail movement is two decades on, and has become so mature and fragmented that it doesn’t have the cohesive structure needed to carry port back into daily relevance.”
While engaging with the cocktail world might present some difficulties, the canned ready to drink scene is a tougher business all together. In the immediate aftermath of covid, the combination of convenience and cleanliness made sense. Cans completely lost their packaging stigma, and as hospitality venues faced staff shortages, they seemed to provide a practice solution that merited investment. Port is not a cheap ingredient though and getting these drinks on the shelf competitively, while maintaining their prestige, turned out to be a huge challenge.
Symington dipped their toes in the water, but pulled out fairly quickly, finding a space populated by large spirits brands and a consumer extremely sensitive to price. “Penetrating that highly competitive market was really difficult. We learnt a lot and are still interested in re-engaging in the RTD sector, but we took the decision to focus our innovation and product development efforts elsewhere for the time being.”
Bridge is not phased by the predicament of either bringing port RTD prices down, or establishing demand for them at a higher price point. For him it’s a market building exercise and needs some support in the early days. “We’ve uncovered commercial challenges to this particular category. We’re in the process of finding solutions. Canning needs scale, and as we find suitable distribution partners, this should sort itself out. It’s going to take time, but we believe in the concept.”
The answer lies in diversity
Although premium port is thriving, the industry is working hard to reshape consumer attitudes towards the category. Symington believes that the best introduction to the drink is through first hand experience of the Douro Valley and the city of Porto. “We receive over 200,000 visitors through our port lodges each year, as well as our restaurants. There were over 30 million visitors to Portugal in 2023 and many of them engage with the culture of Porto.” Bridge elaborates that, “a decade ago only 30,000 Americans visited the country each year. Last year two million visited.”
There is a direct correlation between increased visitor numbers and sales. The ability to forge connections and memories with port is critical for its wider appeal. Symington says “people return to their countries with a new or renewed appreciation for port, an understanding about each style and the moments in which to enjoy it is invaluable.”
Port has survived for hundreds of years, but the industry’s growing relaxation around how it communicates with new customers might very well be the gateway that further entrenches it as one of the world’s most prestigious wines.