As retailers sharpen their fortified wine ranges, Angela Mount looks at how buyers are curating offers to capture seasonal shoppers while helping the category beyond the festive peak
Fortified wine producers have had a tough time since the duty increase of over 40% hit in August 2023, resulting in on-shelf increases for a category already in decline. Throw in tough trading conditions with the trend towards lower-alcohol and it’s fair to say producers and retailers have had to think hard and act fast in the way they market the category.
Like Christmas itself, the peak for fortified wines happens but once a year, with November and December accounting for 35% of total annual sales. For Port especially, with an influx of once-a-year purchasers, this rises to over 40%, driven by brands and gift packs, with brand leader Cockburn’s selling approximately one bottle every 5.4 seconds in the UK over this period (Symington Family Estates).
Gifting remains a key part of the seasonal fortified offer, especially for Port. This year, Majestic has launched Taylor’s Historical Limited Edition Tawny Port The Globe in a wooden gift box. Asda will run a promotion on Dow’s Quinta do Bomfim, and M&S will showcase its Special Reserve Port Decanter, while retailers more generally report ongoing growth in the tawny category.
Outside of Port, Waitrose is introducing two premium sherries from Alvaro Domecq (fino and cream), while luxury-packaged VORS sherries from Gonzalez Byass will appear in several retailers. Madeira, long neglected, is also showing encouraging growth.
Despite the enthusiasm for the category at this time of year, these are challenging times. Overall, fortified wine volume is down 5% YOY (Nielsen to 4/10/25) and value is flat, largely due to duty and inflation rises. So how are retailers and suppliers working together to mitigate negative forces while offering value and enticing new consumers?
“It’s crucial we stay close to buyers and help them to ensure availability,” says Melissa Draycott, MD of Gonzalez Byass UK. “Promotional displays help retailer and brand market share. Meanwhile, increased visibility, engagement and activation bring the category to life.”
Paul Burden, strategic planning director at Fells, similarly advises: “We must ensure the offer is as competitive as it can be, from offering a range of lines through a pricing ladder, which gives an option for every budget, to improving the look and feel of products through added value.”
More pressure
Symington Family Estates global brand manager Andrew May goes further. “There’s more pressure than ever now. We have to invest in visibility and keeping our category relevant. That also means investing in margin: in liquid, shelf space, visually appealing packaging and in innovative options to trade up within the brand,” he says.
Hitting key price points remains essential. Several retailers are exploring smaller pack sizes, especially for sherries, and many own-label ruby and tawny Ports have moved to 18% abv to help offset duty increases without compromising quality.
Looking ahead to 2026, Jane Atkey, product development manager at Sainsbury’s, says the category must focus on “versatility and experimentation for a younger, more interested customer which is interested food and cocktails. Younger drinkers want a total twist on what their parents used to drink”.
Alongside the impact of tourism, cocktail bars and gastronomy, there has been steady growth for drier styles of sherry, fuelled partly by the popularity of tapas-focused restaurants and initiatives such as Sherry Week, which showcase its versatility via high-profile supper clubs and tastings. Elsewhere, market leader Waitrose recently ran a seven-page feature on sherry focusing on myth-busting tips and food-matching ideas; and Tio Pepe’s limited edition En Rama bottlings sell out on allocation and generate buzz across social media.
A more relaxed approach to these classic wines is also helping the reinvention of the category, especially in the case of white Port. White Port and tonic, a classic summer staple in Portugal is now having its moment, with retailers upping their offers.
Sherry spritzers are on trend too, with Hidalgo launching a premixed Manzanilla spritz bottle for £10 rrp. Even cream sherry is being given a makeover, served as a long drink, over ice, with a slice of orange.
What cuts through most is the importance of communicating new ways of enjoying these wines. Right now, it’s about innovation, evolution and rethinking the framework for this traditional category via communication, education and adaptation to market trends. The overall sense is one of determination, but quiet optimism.
