The old debate amongst historians as to whether the testimony of the sixteenth century really bears out Adam Smith's claim that the rounding of the Cape of Good Hope constitutes ‘one of the two and most important events in the recorded history of mankind’ was, it seems, put to sleep with Niels Steensgaard's thesis of 1973. Steensgaard argued that ‘a structural revolution’ and which truly sounded the death-knell of the old overland caravan trades competing with the sea borne routes, was not effected by the Portuguese from 1498 but awaited the Dutch. The debate, however, was couched very much on the theory of the operation run by the Portuguese, and which was typologised as reactionary in that it relied upon the threat of force rather than commercial competitivity. Whilst price movements between Portuguese and Red Sea pepper on the European market have been analysed by historians such as Herman Van Der Wee and Rene Gascon, nobody has really stopped to consider the complex of factors intervening on the demand side. Pepper, like ginger, was not a unitary good as misleadingly assumed by Douglas Irwin in his attempt to analyse the Anglo-Dutch rivalry for the East India trade with the Brander-Spence analysis of duopolistic export competition. Price lists suggest that pepper came in manifold shapes, sizes and qualities, let alone competing species, all of which rendered the market remarkably heterogeneous with up to seven-fold price divergences between, for example, the different products that would pass as ‘pepper’. This article discusses some of the factors that made for market variegation, and focuses on the market consequences of a Portuguese policy of transportation in the open ship's hold. It suggests that quality was one of the demand factors that shaped the competition between the Adantic and Mediterranean spice trade.