Mexican Wine Industry Facing Huge Threat

Mexico exports 80 percent of its wine, mostly to Europe and the U.S. and has been growing at a 12 percent rate in the last decade.

The Guadalupe Valley, known as the “Napa Valley” of Mexico because of its prime area for grape growing and because it produces around 90 percent of the total national wine production, could soon lose up to half of its growing area if plans for a luxury development, with a spa, golf course, hotel and mall get approved. The local council of Ensenada, in Baja California, is currently in talks with several construction companies about a concession that would allow them to build in 48 percent of the winelands, despite protests from the wine industry in Mexico and the area's residents.

The mayor of Ensenada, Enrique Pelayo, told the Spanish newspaper El Pais that construction plans had been approved before his term of office and that he is just following that decision, while the general manager of the proposed development, Carlos Lagos, defended the project arguing that it is sustainable and does not waste resources. “This valley will be a development reference for the rest of Mexico, and it needs proper infrastructure.”

If the project is approved, it will likely devastate the wine industry in Mexico, an industry that has grown rapidly in the past 30 years with production of 1.6 million cases a year. To read more, click HERE.