This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
New regulations for Sherry
The Consejo Regulador de Jerez, which regulates the Sherry industry, is introducing new measures designed to reduce the excess stock in the market and the amount of cheap BOB sherry in markets such as the UK, Holland and Germany.
The shipping quotas for 2007 will be set according to the size and portfolio of the each bodega. Until now the same quota (around 36-37% of stocks in recent years) has applied to all producers irrespective of their size and positioning in the market.
César Saldaña, general manager of the Consejo Regulador said, “We are establishing a shipping quota based on the stock rotation of each bodega based on the last five years and the structure and the needs of the bodega’s portfolio. This should give every bodega the quota that they need for ‘normal’ stock rotation.”
The new quota system will have a range of 22-37% and is designed to give maximum flexibility to the almacenistas (smaller stockholders and often offering fine wines) who are likely to be granted quotas at the top end of the scale.
Saldaña stressed that the new quota system would ensure that there would be enough Sherry to supply the market and that the new measures should alleviate the pressure on pricing. He concluded, “The effect on prices (due to the surplus stocks) is very bad for all concerned in the industry – for Sherry’s image and for margins. The new system may not solve all our problems, but it will allow more reasonable prices.”
Sherry sales in the UK fell by 6.9% in volume and 7.2% in value in the year ending Jan 27, 2006 (Source: ACNielsen).
Patricia Langton
© db 14 February 2007