In 2023, Oli Dodd looked at the ramifications of the UK’s tax on fortified wines and, while brands are beginning to feel the long-term effects of this, the category’s outlook remains positive with new emerging markets and investment at the high end.

“Only last year we started to see the effects because a lot of supermarkets bought stock before the tax hit,” says Symington Family Estates fifth-generation member and associate director of marketing, Charlotte Symington. “In terms of retail price and what that meant for us, if you put the duty of the increase, plus the VAT, overnight essentially it was a 10% increase, so £1.50 added to every bottle of port. However, we see the future at the top end, where £1.50 doesn’t make as much of a difference.”

Based in Portugal’s Douro Valley, Symington Family Estates produces ports across its four houses, Graham’s, Cockburn’s, Dow’s and Warre’s, holding a 23% share of the port market, according to Symington. With the UK as one of its largest export markets, Symington adds the tax has “had a big impact but we’re a family business and are constantly thinking for the long term. While engaging in trends we also want to make sure we’re still selling port for years to come, so we’re optimistic and see the future at the top end”.

Adrian Bridge, chief executive of The Fladgate Partnership, owner of Taylor’s Port, adds: “It is possibly too early to talk about long-term effects, but the level that the UK government taxes is now becoming extreme. Inevitably this has caused an inflation in retail price points. It required us to position Taylor’s LBV at a suggested retail price of £20, although also available on promotion. The same applies for Taylor’s 10 Year Old Tawny, which now has a rrp of £30, being promoted to £25. As consumers are struggling, this government-led inflation will lead to lower sales and lower overall tax revenue.”

Seeking new markets

While this duty increase has adverse effects on port’s positioning in the UK market, the category is looking elsewhere for potential growth. In Asia particularly, Symington is finding growth alongside trends of mixology and highlighting port’s versatility. “South Korea and Indonesia particularly are emerging and growing markets for us,” says Symington, “potentially because in Asia there aren’t the traditions attached to port that we see in Europe. Benelux is also a really interesting market for us, people are doing interesting things with port in those markets.”

In particular, shipments to South Korea have shown “robust long-term growth”, according to Symington. “While we have seen natural fluctuations due to market conditions and post-Covid in 2023 and 2024, the overall trajectory is positive and likely to stabilise around 35,000 9L cases this year.”

Also seeing growth in Asia, Bridge notes that South Korea is “more than simply an emerging market for the Fladgate Partnership”. He continues: “We have been growing our shipments and market share there since 2019. The premium port wine segment is witnessing steady growth driven by rising affluence among South Korea’s professional class and thought leaders, with increased demand for luxury and heritage alcoholic beverages. Growing interest in wine tourism and younger influencers talking about port and introducing the category is creating the pull.

“There is still a lot of entry-level ruby and tawny being consumed, but for our brands we are seeing growth in aged tawnies, Late Bottled Vintage and white port, demonstrating a shift in consumption for better quality, more premium ports. The travel retail arena in South Korea is also very strong and port is performing well here,” Bridge continues.

However, while port appears to be performing well in the off trade, it’s a mixed bag in bars. Odd Strandbakken, head bartender at Charles H at the Four Seasons in Seoul, says: “Port cask-finished whisky is extremely popular and as a result guests want to experience the original liquid. We always have a 2005 Vintage tawny port for sale by the glass as it is requested regularly and we have a white port which is used in Port & Tonic as a lower-abv alternative to a Gin & Tonic. 

“I think port is experiencing the same resurgence as sherry had in the 2010s as cocktail bartenders are rediscovering the nuances of the casks and different styles. When port now is introduced as an ingredient, the appreciation for the liquid can be felt on a deeper level than enjoying it neat, which can be experienced as too sweet for a modern palate.

“White port is on the rise and will combat fino sherry in just a few years. It’s crisp and excellent in cocktails or in easy drinks. Just as sherry has many different styles and uses, the port category has the same – we just need to explore more. The flavour of ruby port can be reminiscent of the flavours found in locally made black raspberry wines in terms of abv and sweetness,” Strandbakken adds.

While seemingly a popular serve in high-end hotel bars, Zest bar, currently ranked ninth on The World’s 50 Best Bars list 2024, still needs convincing. Founder Do Hyung ‘Demie’ Kim notes: “To be honest, we don’t currently use port at our bar. Guests also very seldom ask for port when visiting bars. By contrast, sherry wines gained a foothold earlier – first in restaurants and then in bars through classic cocktails like the Bamboo or Adonis. That gradually opened the door to signature cocktails as well. On top of that, because of the popularity of sherry cask whiskies, the word ‘sherry’ feels much more familiar to the Korean consumer than ‘port’.

“For port specifically, I don’t think there’s a clear popular style yet in Korea. Since demand is low, there hasn’t really been space for a style to stand out. I imagine that if port were to follow sherry’s path, it might take hold first in restaurants or through classic cocktails before becoming more widely accepted in bars.

“From a consumer standpoint, while some producers may see South Korea as a growing market, I think that’s more visible in the wine or restaurant side rather than cocktail bars. Korean consumers are open-minded and curious, but they also respond strongly to familiarity and cultural touchpoints. Sherry benefited from its connections to whisky and classic cocktail culture – port hasn’t yet had that ‘bridge’.

“Looking ahead, I think the future of port in Korean bars will depend on whether it can find that cultural or cocktail connection. If it does, there’s potential for it to follow a similar trajectory to sherry. At this stage, I’d say port is still waiting for its moment in the Korean bar scene,” Kim concludes.