Crush of Competition Revolutionized Mexico Wine Industry

VALLE DE GUADALUPE, Mexico —  Despite being the first wine producer in the Americas, Mexico has not been distinguished for the quality of its wine.

But the industry here has undergone a revolution since Mexico opened its market to wine imports in 1986, and in recent years Mexican wineries have tried hard to prove that their products are world-class. They have been entering--and winning--international competitions in London, Bordeaux and Los Angeles. They are exporting to Germany, Holland, some U.S. cities and even Spain.

The native industry was nearly wiped out when Mexico opened its borders to the imports in 1986. Dozens of wineries closed in the face of competition from Chile, Europe and the United States.

Surviving wineries have strived to make their product a better value for the price. Larger wineries are creating two or three product lines, distinguished by quality and price, to serve the market for premium wines and also serve budget-minded customers.

“Our marketing focus is completely different,” said Hugo d’Acosta, general manager of Santo Tomas, one of Mexico’s oldest wineries, which still ages some wines in huge wooden casks. “Before, no one was interested in exporting. It was comfortable to live off a captive market.”

But, he added, “a prophet is not without honor except in his own house. We have to export in order to sell wine at home.”

But selling top-quality wines in a country that is virtually without wine shops is a challenge. Supermarket chains demand huge quantities in order to stock a label, and restaurants often triple the retail price, discouraging many potential customers.

Monte Xanic sells most of its wines through a newsletter to regular customers. Cavas Valmar, Mexico’s smallest winery with a production of 2,000 cases, offers wine tastings to the passengers of cruise ships that dock in Ensenada.

Last summer, Santo Tomas announced plans to open an Ensenada restaurant that will sell premium wines by the glass. And the Valle de Guadalupe’s biggest winery, L.A. Cetto, will open a wine-tasting room in Tijuana.

Eventually, the six wineries in this valley--which account for an estimated 80% of Mexico’s wine production--hope to organize tasting tours for cruise ship passengers and other weekend visitors to Baja.

“The more we can get people tasting and talking about wines, the more market we will have,” said Luis A. Cetto, owner of the winery that bears his father’s name.