Delaforce sold

[RonnieRoots]

On the news section of InfoPortWine I read that Delaforce is sold off by The Fladgate Partnership to Real Companhia Velha (Royal Oporto). On their website you can read the full report.

Interesting news. I noticed already that Delaforce steadily became a low end brand under TPF reign, and this move will hardly promise a rise in image. Will this be the end of Delaforce in due time?

[Simon Lisle]

I think this quite sad news but I hope not we shall see

[JacobH]

Delaforce is a leader in Germany and is very strong in Holland. These are both commodity markets and despite Delaforce having a premium over its rivals in Germany the pressure on margins is tough due to listing fees. Like all markets this is best overcome by a focus on the market and the end customer and I believe that Delaforce is in a different market segment to our other brands of Taylor, Fonseca and Croft. As such it requires special focus from someone better equipped in this area which RCV is.

I believe that one of the key issues for the Port industry is that there are too many brands. Those people who talk about the recent consolidations and worry about the top five companies controlling 80% of the industry miss the point. Production might have consolidated but the number of brands have not. I see the future as Port brands being experts in some key markets as there are few brands that are truly global these days - our Taylor's brand is one of the few. RCV has a focus on Germany and can therefore do a better job than us with Delaforce. Our team is now able to focus our energy on three brands not four - concentration of effort will yield results. You only need to look at the growth of our company in special category Ports to see that not diversifying into table wine has been a good strategy until now.

That’s pretty scary stuff (both in terms of its abuse of the English language and the content)…

[Conky]

Now that would be a tragedy! All the different brands and types is glorious. I can understand from a commercial point of view how fewer will reduce costs, but it will be such a retrograde step.

I wish we had the buying power to force their hand. In fact should we single out Pink Port and just refuse to buy it. That'll teach them.

Seriously though, with wood chips, reduction in brands, extragavent VP prices, there's a lot to worry about. "Jeeves, bring the Port..."

[JacobH]

What alarms me the most about that statement is that, notwithstanding the names and final sentence, I would have no idea that this was referring to Port shippers. If I am reading this correctly, Adrian Bridge sees the future as being a few heavily promoted and advertised brands, each focusing (and presumably having a near-monopoly) in different countries. Surely the emphasis should be on quality not “branding”? Tightening Taylor’s image might help shift some more Rubies at Christmas but if he wants to increase long-term sales of the “special category Ports”, surely the way to do that it to concentrate on wine-making and not marketing. After-all, wasn’t cutting corners the mistake that the claret industry made in the 1990s and early 2000s?

[benread]

Jacob,

My hope is that they are good marketeers as well as good winemarkers. If they are good marketeers they will realise that positioning different house brands and styles with different segments of the market is in their interests. Reducing the number of brands is not.

The different styles and vintages have each attracted different markets or been tailored to different drinking requirements. What they risk is commoditising the market and driving down costs.

One of my dream jobs would be marketing manager somewhere in the port industry!

[Conky]

I do strongly agree with all that has been posted. Odd thing is, I've only had a handful of these Ports, and none of them were much good, but if it is the thin end of the wedge...

[DRT]

I believe that one of the key issues for the Port industry is that there are too many brands.

That is one of the most frightening statements I have read about this industry. I love the multitude of brands and types of port available and long may the small guys continue to be allowed to produce fabulous wines for us to enjoy.

Derek

[JacobH]

I also wonder how much truth there is in it?

I’ve been working on a script which can automatically index Tasting Notes (and anything else Port-related) on websites, which requires a list of all known Port shippers. Including non-port “port” producers and a few duplications due to typos, I came up with 144, of which just over 120 are represented by tasting notes on . This hardly seems like a lot, when compared to, say, the number of Champagne houses or châteaux in Burgundy and Bordeaux, all of which run into the thousands. I understand that Port is considerably less popular than any of these types of wine, but 120-140 different “brands”, including he historic and really obscure, doesn’t seem like a lot.

[DRT]

Jacob,

That's a very good point. And when you consider the fact that there are around 30,000 individuals or companies growing grapes or producing juice in the Douro it is ridiculous to suggest that just over 100 brands is "too many".

I think it is good that consolidation of the larger houses is happening as it gives them the financial strength to maintain the various brands and styles of port and to market them across the globe effectively. But there always has to be room for the little guy to produce his wine and sell it to whoever he can with the resources available to him.

I just read something on suggesting that Taylor Fladgate will continue to produce the juice and RCV will punt it out under the Delaforce brand. If this is true I think it is even more worrying as TFP will be in control of quality and price whilst RCV take the marketing risk. This is a complete reverse of the traditional method of producing port where the little guys produced the juice and the big shippers bought it all, blended it and marketed it.

I wonder if this was part of the big deal TFP did with the Cassa do Douro a few months ago?

Interesting times.


Derek

[uncle tom]

When you stop to think about it, it's a really odd deal.

Have RCV contracted to buy the wine from TFP, and if so, how do they set the price?

If not, and RCV start selling rubbish wine under the Delaforce brand, then the residual stocks (which were not sold) get devalued, and have no outlet if RCV refuse to buy.

So the TFP sales team couldn't get excited about Delaforce any more - not in itself a ringing endorsement of the company - but their solution was weird..

They don't strike me as being the brightest kids on the block!

Tom

[RonnieRoots]

The deal is indeed very odd. So far, any brand bought by RCV has disappeared sooner or later, and it's not really a company with a glowing reputation when it comes to quality ports (although there seems to be some change in that the last couple of years).

What strikes me most it Mr. Bridges remark concerning the number of brands. I think it's utter nonsense. I can imagine that brands like Delaforce have a more difficult time nowadays with many independent producers coming up, selling their products in more or less the same price range (and often of better quality), but that's just a simple matter of standing up to competition.

This reminds me. Didn't TFP buy Osborne a while ago? Did they completely discontinue that brand or is it still being used for certain markets?

[ajfeather]

Strange deal on paper and even stranger comments. Long may the diversity rule hopefully more indies will emerge and develop global reputations.

Given that western economies thrive on consumer choice ('which blade razor would sir like ?' etc.), choice is ingrained in our shopping habits and personally I love the diversity in both wine and port producers (even if I do stray south sometimes!).

[DRT]

Strange deal on paper and even stranger comments. Long may the diversity rule hopefully more indies will emerge and develop global reputations.

Given that western economies thrive on consumer choice ('which blade razor would sir like ?' etc.), choice is ingrained in our shopping habits and personally I love the diversity in both wine and port producers (even if I do stray south sometimes!).

I agree with all of that. I would love to hear from some of our Canadian friends who live in a place where Port choice is limited by a government agency. I wonder if any of them would recommend that all Port buying markets should move in that direction? Thought not!

Derek

[JacobH]

So far, any brand bought by RCV has disappeared sooner or later, and it's not really a company with a glowing reputation when it comes to quality ports (although there seems to be some change in that the last couple of years).

Out of curiosity, which other brands have they bought which have disappeared?

[mosesbotbol]

Delaforce has the OWC and labels of any port brand. They look like the offical royal port of Portugal or something.

It would travesty if Delaforce disappeared from the market. Luckily I have case 94's... That well may be the last great Delaforce vintage.

[RonnieRoots]

So far, any brand bought by RCV has disappeared sooner or later, and it's not really a company with a glowing reputation when it comes to quality ports (although there seems to be some change in that the last couple of years).

Out of curiosity, which other brands have they bought which have disappeared?

Haven't got my port books here yet, so can't give you a complete answer, but Hooper's and Guedes come to mind.

[jdaw1]

In the UK I own Delaforce 1970 and one 1977, and in the US a bottle of 1935. Guess what I’m thinking!

[JacobH]

Haven't got my port books here yet, so can't give you a complete answer, but Hooper's and Guedes come to mind.

Thanks! Were either of these shippers of the size that Delaforce currently is? I've never come across either, although I that might not be terribly surprising if they were merged with RCV some time ago.

[DRT]

In the UK I own Delaforce 1970 and one 1977, and in the US a bottle of 1935. Guess what I’m thinking!

Delaforce Vertical.

[AHB]

I used to own a bottle of 1985 Delaforce.

And then I drank it.

Now I own 0 Delaforce bottles.

Alex

[mosesbotbol]

I'd be happy to contribute to a Delaforce vertical in NYC or Boston this summer.

I have the 94 Vintage and could possible find something else too?

I can '77 Delaforce at any point should we have a vertical.

[RonnieRoots]

Thanks! Were either of these shippers of the size that Delaforce currently is? I've never come across either, although I that might not be terribly surprising if they were merged with RCV some time ago.

I'm not sure, but I don't think so. Guedes was taken over somewhere in the late '60's, and I'm not sure about Hooper, but that was a long time ago as well. I don't have much experience with both, but had a lovely 30 year old white port from Hooper (bottled by the Dutch importer) and a 1967 LBV from Guedes that had turned into one of the best colheitas I ever drank.

I don't believe I ever owned or tasted any Delaforce vintage ports.

[Simon Lisle]

I have two 77's but I drank a 48 last year and it was a bit of a surprise still gioing strong.

[Axel P]

Although I do share the same feelings as most of you concerning all the different brands and styles I am as well worrying what the Real Companhia Velha will do with this brand.

Delaforce is fairly strong in Germany - whatever that means as 99% of the Port buyable here is rubbish. I do not know any other country that Delaforce is strong in, so why keep it from a Taylor Fladgate point of view. I will definitely miss this brand as I just had an 82 VP which was surprisingly complex and I do own some 70s, 77s, 82, 85 and 2000s.

As long as there are still some left and we wont be able to change it - SAUDE.

Axel