Monday, 4 February 2019

4.2.19 Gloomy Sherry Sales Figures for 2018

The Jerezanos have long feared the effect of Brexit and the latest figures for the 12 months of 2018 seem to be proving their fears for the largest export market well founded. It was hoped that the festive period would recuperate sales but it didn´t, in fact they got worse, and nobody is sure whether it has something to do with Brexit itself or the lower value of Sterling. Global sales slipped 5.9% to 30.6 million litres while sales in the UK slipped by 9.3%.

Things are even worse in Holland with a 14% fall and a less drastic but equally worrying fall of 5% in Germany. Both these markets are dominated by BOB which is largely responsible for a total drop in European sales of 9.5%. Spain is still the leading market with a little over a third of total sales and saw a slight drop of 0.8% to 11.8 million litres. It is not all bad news; The US market grew by about 1% to 1.2 million litres and the Asian market grew by about 14%, mostly in Japan with impressive growth of 25%, but these increases are from a much smaller base.

The bodegas are not keen to release information on prices but there is a general feeling that higher prices, for brands rather than BOB, are at least partly compensating for falling volumes which are of course mostly BOB and do nothing for the reputation of Sherry.

As to styles, Manzanilla is the largest selling wine with sales of 7 million litres (down 0.7%) mostly on the Spanish market, while Fino is next at 6.5 million litres (down 5.7%) and Cream at about 6.5 million litres (down over 7%). Medium is down to 5.9 million litres (-11%) and Pale Cream at 2.2 million litres (-1.8%). The dry styles Oloroso, Palo Cortado and Amontillado are down an average of 8% selling 1.1 million litres and Pedro Ximénez is down 1.3% to about 1 million litres.

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