VERGE OF GREATNESS

09-05-2014

ON THE VERGE OF GREATNESS 

Portugal's wine is teetering on the edge of something, that's for sure. Some say a good vintage will do it; some say that a couple of new brands will be all it takes. Others say the strong regional characteristics will inspire a legion of new drinkers, and that a torrent of Portuguese table wine will then gush onto the UK market. Surprise, surprise, no one is suggesting that the tongue-twisting grape varieties (Fernão Pires anyone?) will make the break. But whatever the theory, there's a rock-solid certainty that success is on its way.

Statistically, however, things are only inching forwards. Nielsen figures to December 29 2007 show only a 1% rise in trade, to a mere 0.9% of the market. By way of comparison, Argentinian wine rose 3% to take 1.4% of the market share. It's not that the foxy tones and impenetrable Portuguese labelling of 1990s yesteryear are still haunting proceedings; it's just that Portugal makes only about a million cases of wine a year, and that's not enough to turn the figures round in a hurry.

Of those three promised success routes, it is the brands - consistent quality wines in substantial quantity - that are set to lead the way. "Look at Tagus Creek, which sold over 100,000 cases last year," points out Nick Oakley of specialist importer Oakley Wine Agencies. "That's an amazing feat. Up against Tagus, wines promoted by appellation stand out far less (unless you're talking about the Douro, which is a brand in itself), and the grape varietals are just not internationally known."
Oakley has had some success with his Star Mountain and Cork Grove brands, and defends their Anglicized names: "In a supermarket environment, Portuguese wines have historically had sticky bottoms and I'll do whatever it takes to shift them!" Its names like these that are powerful enough to push Portuguese wine into the consumer's field of vision.

Greg Sherwood MW, of specialist merchant Handford Wine, agrees: "There's going to be no big leap forward unless the supermarkets and high-street stores plough into the £5-£10 wines. But before that can happen, I'm not sure there are enough brands out there to suit all occasions. Quality is every bit as good as Spain. Quality is not an issue. But getting brands for consumers to build their knowledge onto is crucial."
Danny Cameron of importers R Reynolds cites the 2003 report of business strategy guru Michael Porter, which even five years ago concluded that Portugal needed more wine brands. "Michael Porter was exactly right. On a large or micro scale they are what's going to be recognised, and do Portugal the most favours. When the wines are widely available, and achieve a great degree of consistency, that's what's going to take things forward."

Pushing the regions
The recently launched En Primeur campaign by venerable Shropshire merchant Tanners has been a hugely positive step in terms of launching top-end brands. Its Douro table wine Quinta Vale Dona Maria, which was sold abroad for the first time this year, sold out instantly. While there are plenty more high-end wines available from Portugal - and according to Greg Sherwood they "evaporate from the shelves very quickly" - it is this kind of high visibility marketing that proves the country can give the classic regions a run for their money.

Danny Cameron also believes that if a brand has regional depth it is likely to be even more successful. "Regions work because they draw people's attention to a style, a culture, and also a cuisine, and these methods of recognition are very positive. If a brand is just a grape variety it has much less depth, and you could end up having to bulk discount."

To this end, the name beginning to fix in consumer minds is Douro. "It certainly wasn't the case a few years ago, but the Douro is now an even bigger brand than Portugal itself," says Cameron. "In terms of regional consciousness, only the Douro has presence; none of the other regions do."

Because of its Port history, the Douro is both recognisable and trustworthy, so its wines quickly earn attention and loyalty for their smooth black-hearted fruit, although Johnny Powell of Stevens Garnier, Sogrape's importers, finds them mean and lean, especially when young. "The Dão wines are far more accessible, and Alentejo's can be full of character - a bit agricultural perhaps - but good nonetheless. The region that's really turning the tide is Vinho Verde. It's a devilish job to get consumers to taste the wine, but once they do they love it. We've managed to get Quinta de Azevedo into both Waitrose and Majestic, both trail-blazing stores, and sales have increased 20% over the last 12 months. It is now their biggest selling Portuguese white - and a sensible alternative to Pinot Grigio!"

As the Douro raises its profile, the door is opened for other regions to follow. With Vinho Verde coming forward, and Alentejo's open-knit, easy-fruited wines in plentiful production from the south, it's only going to take the emergence of one or two good producers to really start making more regional names stand out. As Greg Sherwood points out, Douro is great, but "it's not at all suited to mass production; it's dominated by small family-owned farms". Which means there's plenty of opportunity for Dão and elsewhere to fill the market.

In terms of Portuguese varietals, Touriga Nacional is by far the most visible. Now widely championed as Portugal's "noble grape", it is being planted all over the country. With its raspberry richness it is achieving brand status while all other grapes lag behind.

But Sherwood doesn't think the others should be neglected. "Treat people as ignorant and they will remain ignorant. The Portuguese need to pick out the top handful of varieties from each region and promote them. The consumers will definitely enjoy the different styles of wine, and the regional characters will stick in people's minds. This kind of varietal approach has worked for Italy so it should work for Portugal too."

Danny Cameron is sceptical that linking Portuguese grape names with the better-known Syrah or Chardonnay is enough to make them memorable. "Does the consumer remember the Portuguese element? I don't think so, and I don't think this sort of blending does any good."

But others disagree. Nick Oakley, for one, is a fan of the Trojan-horse strategy. "Look at Tagus Creek: Shiraz and Touriga Nacional; Shiraz and Fernão Pires... In the ontrade they can sell original products, but for the off-trade there needs to be something to trigger sales: a familiar grape does that right away."

But shouting loudly is what's really going to turn Portugal around. Whether its brands, regions or grapes that lead the charge, it will be noisy marketing that really brings Portuguese table wine out from Port's shadow. With Vini-Portugal's office now firmly established in the UK under the auspices of Judy Kendrick and Ana Sofia de Oliveira - and less Douro-focused than it has been in the past - that looks set to happen at last.

Point of difference
Indeed, Kendrick is effusive about the reception Portugal is getting. "The Portuguese stand at The Wine Show last October was absolutely packed. People are out there looking for something different. Portugal has 'different' in spades! Grape names are just not a problem. How difficult is it to say Touriga Nacional? No worse than Cabernet Sauvignon, that's for sure."

A further test come at next months's Wines of Portugal tasting, but with the buzz around Portuguese wines this looks like rising to the occasion. But how far can the stampede be away when on-trade statistics - Neilsen again - show a 200% growth in the volume of Portuguese wine sold and 100% up by value? Just as wine writers have been pushing Portugal tirelessly, so have sommeliers been raising the profile of Portuguese wine among diners.

The good news is that people are now leaving the restaurants and seeking out the wines for themselves. Danny Cameron has evidence that the message is filtering through to the man-on-the-street: "Although our experience tells us that Portugal only does well when the wines are hand-sold, direct to the consumer, mail-order trading is now working. Our Portuguese sales are up 30% on last year, so things are obviously turning round. The customer is seeking out Portugal more dynamically."

Though they can't always be trusted, statistics can be the smoke that forewarns of fire. If the right brands are created, the latter set of Nielsen figures indicate an Aussiestyle vinous success for Portugal - and soon.
HARPERS Issue 6325.

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