The demand for cork

Portugal Doubles Down on Cork After Demand Revives in Wine Business - Bloomberg:

"Four months after deadly fires ripped through Portuguese forests and villages, Prime Minister Antonio Costa picked up a spade and planted a cork oak tree.

The move was aimed at offering hope to communities that lost everything to some of the worst blazes in Portugal and to prevent future conflagrations -- oaks are more resistant to fires than eucalyptus and pine forests.

For Corticeira Amorim SGPS SA, the world’s biggest exporter of cork products, the call for more oak couldn’t have come at a better time.

Riding an increased demand for traditionally bottled wine, the company has been asking Portuguese landowners to plant more oak trees.

Cork stoppers, which account for two-thirds of the company’s annual sales, are expected to help Corticeira Amorim post another record year of revenue in 2018, according to Chief Executive Officer Antonio Amorim. The Mozelos, northern Portugal-based company, which doesn’t own any cork oak forests, is now considering investing alongside landowners in new plantations of this type of tree. 

“We’re reaching a point in which the industry and the market demand a bigger supply of cork,” Amorim, whose company was founded by his great grandfather in 1870, said in an interview. "

'via Blog this'


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