Appellation of Origin Port

Douro and Port Wine InstituteAlberto Ribeiro de Almeida

Summary� Portuguese institutional wine organization� Appellations of origin and geographical

indications� Port

� History � Region� Sales

� Legal protection:� National� European Union� International

� Conclusion

Portuguese institutional wine organization–private and public sphere

� Ministry of Agriculture;� Douro and Port Wine Institute;� Madeira Wine Institute (IVBAM);� Vine and Wine Institute;

� Interprofissional Vitiviniculture Commissions.

� Public, interprofissional and private control.

Instituto dos Vinhos do Douro e do Porto (IVPD)� IVDP – A State-owned Institute� Role:

� Implementation of the Wine Policy for the Douro Region� Regulation of the production and commercialization� Protection of both Denominations of Origin “Porto” and “Douro”� Certification� Quality Control� Promotion

� Composition� President� Interprofessional Council� Advisory Council� Auditor

Appellations of origin and geographical indications

� Wine appellations of origin and geographical indications in Portugal:� DOP, DO, DOC;� IGP, “regional wine”.

� Wines without geographical indication or appellation of origin.

� Industrial Property Code� Wine law

Appellations of origin versusgeographical indications

� Main elements:� Demarcation: origin and region;� Specifications: quality and

characteristics;� Control: certification and guarantee

� Differences:� Link with the region;� The production process.

� Trademarks and certification marks.

Port – Historical overview

� In 1675 the word PORT is already used to identify a certain wine;

� In 1678 there is the first registration at the customs authorities of exportation of Port.

� In 1756 is established, by a Decree-Law of the King D. José I, the demarcation and regulation of the Douro Demarcated Region where the Port is produced. This was the first wine controlled appellation of origin in the world .

� Since the XVII century Port in consumed in Portugal and exported to several countries (Brazil and Great-Britain were some of those countries).

� Today Port is exported to more than 100 countries in the world.

� Almost all the production (90%) of Port is exported .

The Douro RegionScoring method of the plotsFactors and minimum and maximum

score � Location -50 to 600 � Altitude -900 to 240 � Slope 1 to 101 � Bedrock -400 to 100 � Gross elements 0 to 80 � Exposure -30 to 100 � Shelter 0 to 60 � Income -900 to 120 � Vine -300 to 420 � Planting density -50 to 50 � Driving system -500 to 100 � Age 0 to 60

Classification of plots: � A > 1200 points� B 1001 to1200 points � C 801 to1000 points � D 601 to 800 points � E 401 to 600 points � F 201 to 400 points

ha

Total area of the region 250,000

Vineyard Area (ha) 45,418

Potential area for DOs 38,464

DO Porto Area (A-F) 32,861

Total of winegrowers 39,506

The value of “Porto and “Douro”

� Global Production in the Douro Region (RDD)� 249 343 pipas (550 litres each)

� Commercialization of GIs and DOs in RDD� 13.9 million of 9-litre boxes� € 473.4 million

� RDD vs Portugal� Production : 25%� Export value (RDD’s DOs) : >80%

2008 RDD wines Douro Douro GI or DO Total

Porto Still “Moscatel” Sparkling GI Wines

Production Pipas (550 litres) 158 520 59 985 5 478 307 6 458 18 595 249 343

Commercialization 9-litre boxes (1000) 9 913 2 173 458 7 1 302 N/A

13 854 (IG or DO)

In K Euro 375.8 72.7 13.8 0.4 11.1 N/A 473.4

(IG or DO)

Port sales 2008 (last 5 years)

� 9,9 million cases (119 million bottles)-5,3%

� 375,8 million euros-7,0%

� 4,21€/litre-1,8%

Port sales 2008 - types of wine

White13.1%

Ruby28.6%

Tawny38.8%

for food stuffs1.0%

30 years 0,3%+40 years 0,2%

LBV 19,1%

Tawny Res 9,3%

Vintage 3,9%Colheitas 2,0%Crusted 0,2%

20 years 3,3%10 years 24,2%

Reserve 37,5%

PremiumPorts18,5%

Aged Ports 28,0%

in quantity

Port sales – Main markets – 1st – 5th

0 .7

1.2

1.7

2 .2

2 .7

3 .2

3 .7

F rance1st

B el- Lux 4 t h

U K 5t h

Po rt ugal 3 rd

Ho l land 2 nd

mil l io n cases

19 9 4 - 2 0 0 8

1st

4 t h

5t h

2 nd

3 rd

Port sales – Main markets – 6th – 10th

0

100

200

300

400

500

USA 7th

Spain 9th

D enmark 10th

C anada 8 th

Germany 6th

tho usand cases

1994-2008

6th

10th

11th

9th

7th

Port sales 2008 - Main markets (million euros)

24,7

88,3

59,6

39,740,1

5,4 6,0

48,0

15,016,5

1,1 2,2

25,6

4,3 18,8

15,7

10,4

5,7

20,7

12,70

500

1.000

1.500

2.000

2.500

3.000

3.500

3,00 4,00 5,00 6,00 7,00 8,00 9,00average price (euros/litre)

thousand cases

Total Premium Ports

FRA

POR

BEL

HOL

USAGER

UK

global average price4,21 euros / litre

CANDENSPA

Legal status – the territoriality principle and other restrictions

� National protection – very strong;� European Law;� International status:

� Bilateral agreements;� Multilateral agreements

(Paris, Madrid, Lisbon and TRIPs);

� Port examples – the pirates.� It is not loyal and is seriously

damaging the Port wine appellation of origin

Great Wall of China

Pirates, imitators and ... others

� Pirates:� Californian Port; Australian Port� India; Russia

� Imitators� “Puertopablo” (France and Spain)� “Puerto Casal” (Belgium)� “Porte Noir” (Holland)� “Porte d’Or” (Belgium)� “Portman’s” (UK)� “Puerto Alegro” (Spain)� “Portly Ruby” (Holland)� Brazil, Costa Rica, Peru, Japan

� Parasites:� “Port Truffles”; “Pâté au Porto”, etc.

PORTE NOIR –Holland

PORTE D’OR -Bélgica

National protection - wine sector rules and Industrial Property Code� High level of protection

� usurpations, imitations, evocations

� any false or misleading indication

� cannot become generic

� prestigious appellations of origin

� traditional expressions

� unfair competition

� National authorities and sanctions� judiciary authority

� prison sentence or a penal sum

� civil measures and civil responsibility

� administrative authority

� penalty (a fine)� customs authorities

� seizure measures

European Law� High level of protection:

� PDO and PGI� Registration system� Protection:

� Any direct or indirect commercial use� Comparable products or exploitation of

reputation� Misuse, imitation or evocation� Any other false or misleading indication� Any other practice liable to mislead the

consumer� Cannot become generic

� Critics:� Relationship with trademarks� Homonymous

Port – a prestigious appellation� The fame has a price:

� “Champagne” tobacco (Paris 1984)� “Champagne” bath gel (Geneva 1990)� “Champagne” perfume (Paris 1993)� “Champagne” biscuits (Paris 2000)� “Bain de Champagne” perfume (Paris 2001)� “Champagner bekommen, Sekt bezahlen” (Vobis

computers– Germany)� “Perrier aus Frankreich. So elegant wie Champagner”

(Germany)� “Miller-High Life – The Champagne of Beers” (Portugal

1999)� “Perfumaria Bordeaux” (Portugal 2000)� “Royal Cognac”, jewels, precious stones, watches, etc. –

(OHMI, May, 2008).� “Porto Cruz”, publicity, hotels, restaurants, etc. (Portugal,

2008).� “Douro Superior”, olive oil (Portugal, 2008).

International protection

� Bilateral agreements:� Concluded by Portugal� Celebrated by the European

Union� South Africa, Canada, Chile

� “phasing-out”

� USA� “The maintenance of past sins”

and no phasing-out

� Australia� Homonymous: “Port Phillip”

Map of Pangaea

International protection� Multilateral agreements

� Paris Convention (1883)� Very weak protection

� Madrid agreement for the repression of false or deceptive indications of source on goods (1891)

� Wine appellations of origin cannot become generic

� Lisbon agreement for the protection of appellations of origin and their international registration (1958)

� Strong protection� TRIPs agreement

� Unbalance agreement� “The maintenance of past sins”

Conclusion

� Appellations of origin and geographical indications are IPR

� Copyright, patents, trademarks…

� Same level of protection� Differences? Why?