E.U. Regulations Created a Port Wine Black Market

People have been making wine in the verdant hills of northern Portugal’s Douro Valley for nearly 2,000 years. Nowadays, the region is home to more than 19,000 grape farmers and 1,000 companies tending terraced vineyards that tower above the Douro River below.

Hundreds of these vineyards are small, often family-owned, properties called quintas, many of which produce port: a syrupy, sweet fortified wine. As a European Union–protected designation of origin product (similar to French Champagne or Italian Parmigiano-Reggiano), the production, labeling, and sale of port are heavily regulated—sometimes to the detriment of the small-scale operators keeping the cultural practice alive.

When I visited the Douro Valley this fall, one quinta owner shared that she couldn’t officially sell port because of burdensome government regulations. All port sellers are required to keep at least 75,000 liters in reserve at all times, she explained—a standard that large producers can meet, but one that might bankrupt a small quinta like hers. In effect, she could only participate in this important cultural heritage as a black market seller.

Francisco Montenegro, owner of the Douro Valley–based Aneto Wines, notes that would-be port sellers have to grapple with several regulations that make it difficult for them to enter the market. On top of the 75,000-liter stock minimum, port producers are allowed to sell or market only one-third of their output, “thus forcing the producer to let [two-thirds] of their wines age.” They have to register under a specific tax status “as they work with spirits,” which requires them to “pay more customs taxes.” Government regulations also mandate that producers “wait at least 3 or 4 years if they want to bottle a normal tawny” port, Montenegro says.

Keep reading

Unknown's avatar

Author: HP McLovincraft

Seeker of rabbit holes. Pessimist. Libertine. Contrarian. Your huckleberry. Possibly true tales of sanity-blasting horror also known as abject reality. Prepare yourself. Veteran of a thousand psychic wars. I have seen the fnords. Deplatformed on Tumblr and Twitter.

Leave a comment