The Port Industry July 2009
Centuries ago, the Douro region in Portugal produced wine of mediocre quality. It was not until the 18th century that international wine traders, who had established themselves in the region during the previous century, started production and trade in the fortified wine later known as port. The global market for port stood at 10.4 million cases1 in 2007, representing a value of EUR 402 million. Port has, so far, been able to avoid dramatically falling prices and decreasing sales, as has been the fate of other fortified wines, such as sherry and vermouth. Nevertheless, the pressure on port prices is high. Over the past 10 years, the industry has shown remarkable changes in ownership, with local players as consolidators. The industry needs innovative solutions in order to overcome challenges brought about by fragmented suppliers, an ageing consumer base and price pressures.
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