In terms of production, key regulations for the brandies of Jerez include the use of a traditional solera ageing system in American oak casks that previously held sherry. For Penedès, producers use different grape varieties and ageing classifications, but the split identities go beyond regulatory standards.

Javier Reynoso, business developer for the on-trade at Zamora Company, doesn’t work directly with a Spanish brandy anymore. However, as the spirit’s global brand ambassador for Familia Torres in Penedès for a decade and later the international business development manager for Grupo Emperador in Jerez, he’s played in both courts.

“The two main regions of Spain are very different. They’re very far apart physically and have very different approaches. They aren’t enemies, they just aren’t connected enough and, in my opinion, the more traditional producers in the sherry region see themselves as the authentic Spanish brandy, and they connect very effectively with their traditional audience, but for a long time they weren’t aware of how successful Torres was in Penedès.”

Younger consumers
Familia Torres is one of the most famous wine-producing families in the business and has topped The World’s Most Admired Wine Brands seven times. It entered the brandy trade in 1928 and today it is the dominant force in Penedès, having spent the past decade engaging with the global on-trade through the launch of bartender-focused products, its longstanding partnership with The World’s 50 Best Bars and its ongoing sustainability themed Torres Brandy Zero Challenge.

“One of the main reasons for the success of Torres is its connection with younger consumers, both in Barcelona and in the global bar trade. But those in the sherry region are a lot more traditional and, in my opinion, aren’t engaging with the right people,” says Reynoso.

“I’ve also noticed that those older producers in the sherry region aren’t effectively investing the funds they receive from the government for promotion. I think it’s really poor what they do with these resources and it’s a shame. In many cases, they end up being translated into just a few Instagram posts or some traditional-style activations with very limited geographical impact.”

Over the years Familia Torres has released a flurry of experimental products, from unusual barrel finishes such as its Spiced and Smoked Barrel brandies to its Alta Luz cristalino. But according to Christian Visalli, spirits managing director, the next step is to consolidate the portfolio.

“We don’t want to just randomly launch things and have lots of small products everywhere,” says Visalli. “So right now, the focus has been for this year to stabilise. That being said, we have launched one specific new innovation in Mexico. One of the things we were looking for in the established markets, such as Mexico, is to leverage the power of our whole brand range but also target some of the local flavours. We have therefore developed Torres Mazapán, a brandy liqueur based on mazapán, which is a huge confectionery in Mexico.”

Mazapán, or marzipan in English, is generally made of almonds, but in Mexico it’s peanut-based and with the Torres name firmly established in that country, the product is performing well in both the on and off-trade.

Visalli adds: “I think historically not being so close to one another, each region has been going its own direction in terms of strategy and the ways in which to focus on the business. I hope for the future that we’re going to go in the same direction while keeping our traditional consumers, because I think both Jerez and Penedès have them. The challenge and the opportunity for us is to keep engaging with the younger generation.”

Reynoso, who was well known in the global on-trade for his work with Familia Torres, believes that competition in the Penedès region is necessary for growth.

“In Penedès I think there needs to be more brands emerging soon, because right now it is dominated by Torres and for the region to be taken more seriously internationally there needs to be variety.”

Visalli agrees: “I think that if there were more players in the category then it could be a big turning point. If I can give the comparison to what happened in gin, there were a bunch of new brands appearing and, while not all of them survived, it grew the category together and stole some market share from other categories. Also, if more brands hit the market then it shows we are succeeding in a way, because they see an opportunity in our success. So it's inspiring for other people to put their money, effort and investment into building the category.”

Looking at the Brands Report, which highlights the sales trends in the world’s best bars, Torres sits top of the list, but Carlos I and Lustau of Jerez are both in the top 10. There’s no denying the power of the Brandy de Jerez brand, but perhaps its time the producers aligned in order to secure its future. After all, a traditional consumer base may only be one generation away from not existing.