Symington: Port exports to the UK ‘unbelievably stable’

Port exports to the UK remain ‘unbelievably stable’, despite an ongoing decline in the fortified wine sector, according to Paul Symington, chairman of Symington Family Estates, with the total export value of Port up 19.35% since 2010.

Porto

According to figures provided to the Institute of Douro Wine (IVDP) by the Portuguese Ministry of Agriculture, total exports of Port to the UK totalled 1,034,209 nine-litre cases in 2017, a 5.65% increase compared with 2010. 

By value, total Port exports to the UK were worth €50,133,379 in 2017, an increase of 19.35% compared to 2010. 

But while volume and value has increased across the board, it is at the premium end of the market where gains have really been significant. 

The export value of premium Port reached €37,273,594 in 2017, representing an increase of 27.66% on 2010. By volume, exports of premium ports increased by 10.42% to 617,336 nine-litre cases. 

These results signal a strong and healthy industry, say Symington, who also criticised the timing of a well meaning campaign launched by the WSTA at the end of 2016, encouraging people to ‘Pass the Port’ and citing that Port sales had declined by 26% in the last ten years in the UK. 

Speaking to the drinks business, Symington said he believed that the campaign had added to the false perception that Port is in decline, when in fact it is in very good health in the UK.

“The WSTA people put that out for the best reasons, but the message that they have put across is outrageous, because the reality is that Port has been unbelievably stable and achieved an additional €8 million in sales over the past 10 years. Here in Portugal, when these figures were published the government said what a great result. Britain took more Port in 2017 than in 2016, while there was a devaluation of the pound. To see a report that said Port was dying was just surreal. We are extremely pleased with the UK market.”

Premium Port now accounts for 74% of total Port exports to the UK by value, compared to 70% in 2010, says Symington. Much of that growth has come from aged tawnies, says Symington, however Port producers are still tarred with the same brush as other fortified categories, such as Sherry.

“We are tarred with the general fortified brush and that’s generally in decline but Port has got this extremely ability and skill to create a premium sector and there’s no doubt that the cheaper end of the Port volume is in decline,” explained Symington.

“So the overall volumes of Port and sold are significantly lower now then they were in 2000. Buy what we and the other Port companies here have done is be successful in creating a premium category. Volume is going down but the value is going up. I know Sherry and Madeira looks to us as an example. I’m not saying we walk on water, but we have been have good at creating fantastic value in premium.”

While the WSTA uses IWSR data, taking 2016 as its baseline, Symington argues that the most reliable stats are those of export figures, provided by the IVDP and the Ministry of Agriculture.

Paul and Charlotte Symington at Quinta do Ataide in the Douro

“The official IVDP export figures are the single most reliable way of measuring the size and development of the UK Port market,” said Symington. “There is absolutely no re-export of Port to other world markets apart from a few dozen cases of rare and old Vintage Port. If anything some of the German discounters, that are growing so fast in the UK, are likely to import some Port from Holland and Belgium, volumes that would of course not be in the official export figures from Portugal.”

Symington also made the point that there is “absolutely no stock holding of Port in the UK”.

“In some years large retailers get their Christmas ordering wrong and are left with a few weeks or months of excess stock into the new year,” he said. “This has happened at the start of 2018 and the official IVDP Port export figures to end June this year are down, but as the majority of Port sales are in the last four months of the year, we are not overly concerned by the figures for the first two quarters.”