The results of Phylloxera were far reaching. Many small growers were ruined, and the big bodegas bought them out, thus increasing their vineyard holdings. The Domecq proposals involved the elimination of cheap blends, and a return to the natural quality wines, little understood as they were in the export markets. Other wine producing areas in Spain (and even abroad - Bordeaux, Hamburg for example) could quite easily fake the blends , but far less easily the natural quality wines. It was decided to promote the "proper" Sherries and to protect their authenticity by bottling them at source, a measure which also protected them from adulteration further down the line.
In 1914 a proposal was sent to the Government to delimit the production zone, and it was met with approval - but also procrastination. Many exporters, however felt that delimiting the production zone would reduce their flexibility in blending and pricing. In the end, the Government of the Second Republic passed a "Wine Statute" in 1932 which became law in the following year. This law established and regulated the concept of Denomination of Origin, and a local regulating council (the Consejo Regulador) was set up in 1934, the first of its kind in Spain. Much argument ensued about the specifics of the delimitation, and keeping a fair balance of rights between the growers and the exporters, the latter often being quite intransigent. A new Reglamento (Ruling) was issued by the Government in 1936, and things settled down somewhat. Partly as a result of the next lot of troubles.
In July 1936 the Spanish Civil War broke out, which was to last till 1939. It had comparatively little effect on Jerez, whose sales were gradually rising, but the outbreak of World War Two had much more effect, with German U-Boat attacks on shipping making export difficult. After the wars much of Spain lay devastated, but Jerez got off reasonably lightly and sales continued growing steadily. In 1960 exports reached 86,000 butts, and by 1965 that figure had climbed to 126,000. Another key event took place that year; the founding in Jerez of a company called Rumasa, (please see separate posts).
Through the 1970's sales stabilised despite the introduction of a new style of Sherry, namely Pale Cream, and soon they would start to fall as the world economic crisis took effect. To stay competitive and boost declining sales, exporters had allowed production and pricing to get out of hand, leaving little room for profit. Things got to quite a state and eventually a plan was arrived at. To balance supply with demand, surplus vineyards were put to other uses such as production of table wine, or grubbed up and replanted with cereals which attracted grants from the European Union which Spain had joined in 1985. Permitted yields were cut; sales were limited to demand - not production, obliging producers to cut production. Membership of the EU meant national wine laws were superceded by the EU wine regime, but its effects were largely beneficial.
Industrial relations took a turn for the worse in 1991 with a turbulent strike about pensions and retirement. The strike lasted 59 days leading to a 40% reduction of must supply and export disruption over the important Christmas period. There have been disputes over grape prices, with threats to leave the grapes unpicked. Nevertheless, things looked reasonably optimistic going into the 21st century. Exports were increasing beyond the traditional markets of Holland and Britain, and going to Japan, Germany the USA.
The introduction in 2000 of the Vejez Calificada (Guaranteed Age: 12 years old, 15 years old, VOS 20 years old and VORS 30 years old) wines has been most successful. Recent grubbing up of excess vineyard has finally brought supply and demand into equilibrium and Sherry is shaking off the (totally undeserved) fuddy duddy image of yore, and making headway with some superb natural quality wines - just as Pedro Domecq would have wanted. It just needs a bigger promotional and educational budget...
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