A NICE TIPPLE
Portugal has made a comeback not only as the world's leading manufacturer of cork stoppers, but also as a legitimate winemaker in the global market.
Uncorking a proper bottle of wine is always accompanied by what many people feel is one of the most satisfying sounds on earth. That specific satisfaction, however, was in recent years threatened by the arrival of alternative stoppers made out of plastic and aluminum. In the name of good taste and style, the cork industry, largely based in Portugal, is standing its ground. The industry argues that nothing except a piece of cork can do the trick. When it comes to wine, so the sentiment goes, one is not merely after practicality, but tradition and style. After some ups and downs over the years, corks have made a comeback and are now reclaiming their status as the ultimate guardians of wine bottles.
Regardless of cork stoppers' aesthetic merits over plastic and aluminum, the production of cork is a billion-dollar industry in its own right. Portugal, the world's leading producer, earns approximately USD1 billion per year from the export of cork, and the industry is responsible for 15,000-20,000 direct and indirect jobs in the country. Portugal owes its status as the world's biggest producer of cork stoppers to over 1.8 million acres of cork oak forests stretched along its western and southern coasts.
Founded in 1870, Corticeira Amorim is thought to be the world's largest producer. The company played a crucial role in the re-popularization of cork in recent years by minimizing the undermining effects that, according to some winemakers, cork has on the taste and smell of bottled wine. The industry is now employing advanced screening and processing methods to make cork stoppers as neutral as possible. The company believes that cork manufacturing is one of the eco-friendliest industries in the world, because cork oak forests, which are kept healthy and thriving with the help of the industry, are effective absorbers of greenhouse gases.
Although Portuguese cork is for the most part exported, particularly to the US, it is also used by local winemakers. Portugal is hardly a new member of the winemaker's club; it has been exporting wine since Roman times. In the early 18th century, Portuguese wine was appreciated in England, among other places. Indeed, the winemaking tradition of Portugal is as sophisticated as those of France and Italy, and some regions of Portugal have had appellation systems in place for centuries.
In addition to the UNESCO-protected Douro Valley, Minho, Dão, and Bairrada are regarded as wine-producing regions of Portugal. Thanks to grape varieties such as Touriga Nacional, Touriga Franca, Alvarinho, and Tinta Roriz and a general dislike for using non-Iberian grapes, Portugal has established itself as a reputable winemaker around the world. Port wine and vinho verde are in high demand in global markets, with port accounting for over 40% of Portugal's wine exports.
According to Portugal's Institute of Vine and Wine (IVV), the country exported over USD885 million worth of wine in 2017, a 7.5% growth. And the largest increase came from emerging markets; Brazil and Angola each spent over USD50 million in 2017 on Portuguese wine. However, France continues to be the biggest customer of Portugal's wine—importing approximately USD125 million worth per year—followed by the UK and the US. Although Portugal is already among the top 20 producers in the world, if the country wants to make a name for itself as a major player in the sector, marketing should be taken more seriously. Many winemakers across the country are small family businesses that cannot possibly launch marketing campaigns in the target countries. As such, having an exporters' association of some sort could be a very effective measure. Since 1997, this role has been fulfilled by ViniPortugal, whose aim is to promote the image of Portugal as a wine producing country par excellence by advancing its unique selection of vineyards and varieties.
A NICE TIPPLE
TABLE OF CONTENTS
Focus: Community of Portuguese Language Speaking Countries
Making an Impact
Established in 1996, the Community of Portuguese Language Speaking Countries (CPLP) is a mechanism geared at linking and sharing the experience of Lusophone countries. Besides Portugal, this includes Brazil, Portugal, Cape Verde, Angola, Mozambique, Guinea-Bissau, and São Tomé and Príncipe.
read articleFocus
Don’t Mind the Disruption
Having won the 2017 Eurovision Song Contest, Lisbon hosted the 2018 event. The relevance? Well, the contest began back in 1956 as a showcase not only of song, but of then-nascent live television broadcast technology. Today, Portugal is on the cutting edge of new technological developments.
read articleInterview
João Pedro Soeiro de Matos Fernandes , Minister , Environment and Energy Transition
The Ministry for the Environment and Energy Transition is focusing on decarbonizing the economy, valuing the territory and its habitats, and striving for a more circular use of the country's resources.
read articleInterview
António Braz Costa , General Manager, Portuguese Technological Centre for the Textile & Clothing Industries (CITEVE)
CITEVE has transformed the industry by promoting value addition, adopting the latest technologies, and ensuring the highest standards of environmental sustainability.
read articleFocus: New airport
Right Time to Seize Missed Opportunities
Portugal has seen its air traffic figures increase by as much as 80% in the last five years. As a result, its transportation infrastructure, and Lisbon's airport in particular, cannot cope with the rising numbers. A new airport project that will turn a military base into a commercial airport is now under discussion to bring much-needed relief to air traffic.
read articleInterview
Germano de Sousa , President, Grupo Germano de Sousa
Grupo Germano de Sousa's success can best be summed up by its understanding that science and medicine only really progress when technological development is combined with a deeper respect for human values and professional ethics.
read articleInterview
Isabel Capeloa Gil , Rector, Universidade Católica
Having pioneered the introduction of multiple subject areas to Portugal's tertiary education scene, Universidade Católica is aspiring to establish the country's first private medical school and introduce cutting-edge digital transformation.
read articleInterview
Carlos Guillén Gestoso , President, Escola Universitária de Ciências Empresariais, Saúde, Tecnologias e Engenharia & President, Atlantica University
Atlantica University differentiates through its company-university model and an MBA program in partnership with the University of California, Berkley, among other initiatives, to produce practical theoreticians.
read articleFocus: Public teaching staff
An Age-old Problem
Over a decade of austerity measures combined with an ageing population have seen the average age of the Portuguese public teaching staff progressively climb to one of the highest in the OECD. With frozen salaries, an extended retirement age, and precarious working conditions, today the sector faces one of its biggest challenge yet.
read articleInterview
Pedro Queiroz , General Manager, Federation of the Portuguese Agri-Food Industry (FIPA)
Portugal's economic recovery has seen its F&B sector emerge with annual turnovers of EUR16 billion, thanks to FIPA's undeterred focus on stable policies, excellent nutrition standards, and sustainability.
read article
