6. Port producers and shippers
the struCture oF the traDe
The Port trade is dominated by brands. It has been, to a greater or lesser extent, since the
eighteenth century when many of the famous Port-shipping firms came into being. But
household names like Sandeman, Cockburn, Graham and Taylor represent the apex of a
much larger pyramid. There are over 34,000 individual lavradores or farmers in the Douro,
the vast majority of whom farm far too little land to justify investment in a winery. A few
continue to produce a few pipes of wine in time-honoured fashion (adegueiros), but most
sell their grapes either to one of the major shippers or to a co-operative.
The shippers often have long-term contracts with individual growers and/or adegueiros.
‘Contract’ is perhaps too strong a word, for these are mostly gentleman’s agreements based
on mutual trust which stretches back for generations. A senior member of the shipping
firm (usually the winemaker) will visit his growers at least once a year, usually just prior to
the harvest. Deals are invariably done over a glass of ancient tawny from the farmer’s own
stock followed by a handshake. In the past it wasn’t unknown for the farmer’s daughter to
be offered as part of the bargain!
Until 1986, all Port wine had to be traded through the entreposto or bonded area of Vila
Nova de Gaia. The legislation that came into force in June of that year opened the way for
wines to be exported directly from growers in the demarcated Douro region. Although a
number of leading quintas and some co-operatives have begun to market their own wine,
the pre-eminence of the established brands has meant that their share of Port wine sales has
not passed 1 per cent. The co-operatives in the region produce 20 per cent of all Port, most
of which is bought by the shippers as the basis for their standard ruby and tawny. There are
also a number of powerful intermediários (intermediaries), private companies who make
and/or broker wine as a commodity and sell to many of the larger shippers.