Sales of Jerez brandy fell by 36.2% in 2002 from 99.3m bottles to 63.4m bottles. A spokesperson for the Jerez brandy regulatory authority said an increase in alcohol taxation imposed on January 1 2002 was one of the prime reasons for the decline.

The fall was also attributed to a decline in the number of tourists to Spain in 2002 and the adoption of the Euro.

Domestic sales fell by almost 50% to 31m bottles. The largest export markets for Jerez brandy in 2002 were the Philippines, China and Germany.