3 - Madeira Law and Wine Business

Question 1

-structure of the industry

Answer 1

• vineyard land is highly fragmented
• over 1000 growers
• average vineyard holding 0.3ha
• winemaking and maturation is extremely consolidated 8 producers
• 3 large companies Justin’s, Madeira wine company, Henriques & Henriques
• 2 producers own or rent vineyards Madeira wine company, Henriques & Henriques which only cover small percentage of each producer volume
• agents provide consultation for growers during the growing season and coordinate the harvest to help smooth the process to producers

Question 2

IVBAM

founded in 2006

Answer 2

-responsible for coordinating and supporting the wine and embroidery in Madeira

• monitoring Madeira wine stocks
• quality control
• reception of the grapes, beginning and end of the ageing process seal out unseal the vessels need to have a representative of the IVBAM
• tasting panel and laboratory check of the profile of the wines to be labelled with an age indication or a vintage year
• support and visit the growers giving advice and support needed
• set regulations as part of the production and labelling

Question 3

sales

Answer 3

• remained relatively stable for the past few decades
• 2017 total sales were 3.2 million L
• 1.9 million L young corrente Madeira made from tinta negra
• 5-10 years most common age-indicated categories with the largest categorie for wines with varietally indication
• 48000L colheita and frasqueira
• sales on values show a gradual increase with colheita and fresqueira high quality
• market 1 France but inexpensive/ 2 Madeira/ 3 Germany inexpensive / 4 Uk expensive
• 2017 784.000 L around one quarter of the total production is used in the food industry or flavouring in schnapps