Monday, 7 August 2017

7.8.17 Sherry Sales for the First Half of 2017

The existing trend continues with export sales down and domestic sales up. Total sales were 7.2% down with a volume of a little under 15 million litres, as against the same period for 2016 with a volume of over 15.6 million litres, and 2015 with 16.2 million. Exports are down by 13% and amounted to less than 8 million litres while sales on the Spanish market rose by 0.8% with sales of a little over 6.5 million litres.

Spain has now consolidated its place as the largest market, having knocked Britain into second place some time ago, and it is the bodega brands which are selling, while sales of the cheap BOB, which did so much damage to the image of Sherry, are plummeting. The good results in Spain are driven by gastronomy and Sherry’s amazing ability to match any dish, and are encouraging the bodegas to concentrate on quality.

Sherry is slowly shedding the “wine for grannies” image and playing a starring role in the fashionable bars and Sherry Bars which are proliferating in Europe, Asia and America. It is now quality wine which is selling as demonstrated by the falling sales of BOB in its traditional markets. In the UK sales dropped by 13.3% with a volume of 2.7 million litres, in Holland and Germany sales dropped by 16% and 22% respectively with a total volume of just over 3 million litres, as against 3.8 million last year.

The US market dropped by 10% to 573,578 litres and, despite its admiration for Spanish culture, its venenciadores and its Sherry bars, the Asian market remains to be cracked. Sales were very modest; not far over 100,000 litres, but at least they were up, by 2.6%.

Looking at the last twelve months, total sales were down by 5.7% with a volume of 33.3 million litres as against the previous year which saw sales of 35.3 million litres. During the same period the Spanish market grew by 3.4% with over 12 million litres, while exports fell by over 10% to a volume of just over 21 million litres as against 23.6 in the previous year. The vast majority of Sherry is sold in Europe which as a whole saw a drop of 10% with a volume of 19.2 million litres, while the US saw a more serious drop of 13.6% and Asia of 4.6%.

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