Portugal enjoys UK?on-trade success

Published: 23 July, 2008

Wines of Portugal has announced that it will focus its marketing on the UK on-trade in 2007, after latest sales figures showed an increase of 32% by value.

The total promotional budget for key markets including the UK and US was 4.5 million (3m) in 2006, and the UK's share will be significantly more' than last year, according to Filipe da Mota Neves, product manager for government body Wines of Portugal.

Neves also admitted that trade body ViniPortugal's 2005 advertising campaign - which cost 2m (1.3m) and featured a cartoon of a besuited man and the phrase If someone asks what you are drinking, say it's a secret potion' - was not working', and that a new campaign would be launched this year.

The increased budget for the UK was agreed during a meeting between the two organisations in London earlier this month.

Portugal hopes to build on the growth of on-trade sales in the UK: latest AC Nielsen figures show an increase in on-trade sales of 32% by value and 24% by volume in 2006. According to HM Customs and Excise, table wine exports to the UK have increased by 5% in value, although AC Nielsen data showed that the average bottle price has dropped from 3.39 (week ending 10 September 2005) to 3.33 (9 September 2006).

Wines of Portugal said the increase in on-trade sales was due to a partnership with the Academy of Food and Wine Service in Surrey, which involves on-trade tastings in the UK and sommelier trips to Portugal. This partnership will continue in 2007. Restaurants and independent retailers will also be able to apply for a new bursary scheme to run Portuguese promotions in 2007.

The off-trade will see investment, although the supermarket sector will not be targeted as heavily as in previous years. Neves said there will be a promotion with Waitrose at Easter, and there are plans for campaigns with Morrisons and Majestic. He added that Tesco will be extending its Portuguese range and has put out a tender for some Douro table wines.

The money spent on the secret potion' campaign will be reduced. Nick Oakley, president of the UK Association of Portuguese Wine Importers (AWPI), said: Money has been badly directed and poorly spent by the Portuguese wine bodies in the past.

Every member of the AWPI threw their hands up in horror at the "secret potions" campaign. It was a waste of money.'

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