Tuesday, 1 May 2018

1.5.18 Brandy de Jerez Sales Improve

After years of declining sales the figures for Brandy de Jerez sales have shown a healthy increase in the first quarter of 2018. Exports grew by over 27% with sales of 1,340,060 litres while the home market grew by 20% with sales of 774,164 litres. This needs to be seen in context however, with the total sales for the past 12 months, at 9.7 million litres, showing a drop of 4.7%. The Philippines are the biggest export market and in the first quarter over half a million litres were sold there, a rise of 64%. Europe bought 386,000 litres, an increase of 13% and Africa bought 305,000 litres, an impressive rise of 195%, while America saw a decrease of 52% to 141,000 litres.

Some time ago now, the bodegas decided to stop selling Brandy de Jerez Solera in favour of the lower strength Bebidas Espirituosas as raw material costs and taxes were rising. Despite this, Brandy de Jerez Solera, with 6 months minimum ageing and an average of 1 year old at sale, remains the best seller with approximately 0.9 million litres sold representing growth of 48%. 725,000 litres of this went abroad, an increase of 46.5% while the rest was sold at home showing an increase of 55%.

Sales of Brandy de Jerez Solera Reserva, with a minimum of 1 year ageing and average age of two years, were about the same volume, showing an overall quarterly increase of 20%. Slightly more was sold at home with sales of 481,259 litres, 16.62% up, while exports were 409,149 litres, up 23.92%. The news is not so good however in the Brandy de Jerez Gran Reserva Category with its 3 years minimum ageing and average age at sale of 8 years. Total sales for the first quarter were down by 6.6% to a volume of 330,000 litres. Export showed a decline of 9% at 205,546 litres while home market sales were down 2% to about 122,000 litres.

The overall picture shows that sales decline is slowing and there are grounds for cautious optimism in the hope that a new trend is under way. Jerez Brandy is a very important product both economically and socially; of the 20 or so quality spirits produced in Spain which are recognised by the EU it has a global market share of some 55%. The estimated value of sales of Brandy de Jerez in 2016 was 80 million euros, 60% of all Spanish spirits.

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