In with the new

Can a very modern approach to Madeira help shift the status quo on export figures. Chris Orr reports

IT ONLY takes a glance at the packaging from two of Madeira’s major producers, the Madeira Wine Company (MWC) and Henriques & Henriques to realise that the drink is changing – and not all that subtly.

The latter’s revamp of four of its major bottlings – a three year old extra dry Madeira, a 10 year old Sercial and two 15 year-old Malmseys – at the request of Waitrose resulted in a sleek, clear bottle, 50cl in size, thin, modern and, well, pretty sexy.   And the MWCs latest launch, the Blandy Alvada 5 year-old Madeira, is no less so. 

For a start the blend is from both Malmsey and Bual, and thereby breaks the traditional rule book entirely – but perhaps more importantly it comes in a tall, dark bottle, 50cl again, with a vibrant, Schaperelli pink band across it, proclaiming its age and wine type. Stuffy old gentlemen, sitting by the fireplace in their favourite St James club, this isn’t.

"Our aim," explains John Cossart, managing director of Henriques & Henriques, "is pretty straightforward.  We want to attract a younger crowd to the drink. We want to expand the consumer base and bring more people into the fold – allow more people to experience what a wonderful drink Madeira can be."

So why the clear attempt at a younger, more modern market? Well, a quick look at the statistics for the shipments over the past 10 years, particularly to the UK, the second biggest market next to France, makes it pretty obvious.

Exports and sales of Madeira globally have hovered around an average of 325,000 9l cases to 370,000 cases over the last decade, with 2002’s 313,144 case sales figure proving to be a pretty good mean average.

In the UK sales figures have rarely dropped below 26,000 odd cases, hit as high as 37,000 cases, but mostly averaged at around 30,000 or so. 

Last year’s figures of 31,246 9l cases is again about as close as you can get to a mean average.  "The problem is the figures have been fairly static," explains Ben Campbell Johnston brand manager for John E Fells, UK importers of Blandy’s (Madeira’s brand leader in the UK). 

"We’re pretty pleased with our performance overall, but Alvada is our attempt to rejuvenate some of the market, and boost sales overall."  And the UK is a particularly important market to rejuvenate.

It may play second fiddle to France in volume terms, but in value terms it is far more lucrative. Last year France imported a total of 952,133 litres, generating €2,246,716.58 of revenue, which averages out at €2.35 a litre.

The UK in contrast generated €1,615,629.83 worth of sales, amounting to 329,285 litres in total, or €4.90 per litre – almost double that of France.  The next largest export markets to these two in volume, however, is Japan, followed by the US – both of which generate less volume but higher income.

Japan, for example, generated €1,005,566.52 of revenue from sales of 188357 litres, giving an average price per litre of €5.33, while the US did €1,195,395.64 on 173,701 litres, generating €6.88 average price per litre.

But growth in Japan is slowing, and the US is still an uncertain, though obviously lucrative, market.  The UK, by contrast, has a loyal core of Madeira drinkers, but, says Campbell Johnston, "it’s time to break into a few new areas, and perhaps even shock a few people, and the UK is the perfect market for that."

Whether these new attempts at rejuvenating the Madeira market, especially in the UK, are successful remains to be seen.  Henriques & Henriques have reported strong sales growth through Waitrose, and Fells claim they have had a very positive reception from the trade for Alvada.

Given the relatively static sales figures over the last decade globally, it certainly won’t do any harm for Madeira producers to try and attract a younger crowd.  Unfortunately they have tough competition.

Ask any malt whisky producer, port producer or even gin peddler – they’re all after that same nirvana, a younger drinker that can help their profit line grow old gracefully.