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Spanish firm Terras Gaudas has been exporting Rías Baixas D.O. (Designation of Origin) wines to Mexico since 2001.
Designation of Origin is a labelling system run by the Spanish Ministry of Agriculture, Fisheries and Food for the country's highest quality produce.
- Founded in 1990
- Headquarters: Pontevedra, Spain
- Employees: 55
- Annual turnover: €12.5 million (2017)
Developing long-term relationships with specialized distributors is key to the company's strategy in Mexico. Their high-quality wines require special handling conditions and consumers have to be made aware of the uniqueness of the Rias Baixas D.O.
Bodegas Terras Gauda selected Mexico as a priority export market for a number of reasons. Cultural affinity and the Spanish language helped enter the market, as did high consumer awareness of other Spanish wines on sale in Mexico. The presence of a large diaspora from Galicia that is acquainted with the company’s wine varieties was also a factor.
Eight percent of Terras Gauda’s sales of Rias Baixas go to Mexico. The company plans to expand this to 12% in two years.
Terras Gauda has great expectations with regards to the EU’s new trade agreement with Mexico. It will help make EU D.O. wines in Mexico more competitive compared to those from other countries such as Chile or Argentina, and even Mexico, whose wine sector has grown rapidly in recent years.
How the trade agreement could help?
The Agreement has benefited Terras Gauda by allowing EU wines to be imported into Mexico tariff-free.
The new trade agreement between the EU and Mexico will be an important step to bolster the presence of Spanish wines in Mexico. It will help make us market leaders in the sector and pave the way for other Designations of Origin from Spain.
Jose Maria Fonseca,
CEO, Terras Gauda