Showing posts with label Garvey. Show all posts
Showing posts with label Garvey. Show all posts

Wednesday, 3 October 2018

Amontillado Campero 18.5%, Vinicola Soto

Appearance
Fairly deep mahogany fading to amber with copper highlights.
Nose
Quite full and nutty with a faint bitterness and traces of oak. There are toasted almonds and hazelnuts and a faint cinder toffee note, and more than a hint of Oloroso, giving it a slightly odd but not unpleasant lean side and a generous side at the same time.
Palate
Full, dry, and remarkably similar to the nose, but given the likely average age of the wine it could do with a touch less alcohol. The Oloroso character comes through as well, giving it the body (and flavour) a fairly young Amontillado wouldn't have. Nonetheless, it is more than drinkable.
Comments
Vinicola Soto was founded in 1771 as José de Soto and earned a fine reputation, but unfortunately no longer really exists as anything more than a brand name, thanks to its being taken over by Nueva Rumasa in 1989.  In around 2000 it was merged with Garvey and stocks from both firms were moved to the huge new purpose built bodega called the Complejo Bodeguero Bellavista on the Jerez ring road. At least they had a good oenologist: Luis Arroyo Felizes, but he wisely left when Nueva Rumasa went bust in 2011 and established his own bodega: Bodegas Arfe. Garvey was run (down) by the receivers for years and much good wine was sold off until it was bought in January 2017 by Grupo Emperador. De Soto is now just a sous-marque of Garvey, but still uses the famous old Campero (countryman) brand name for a range of wines which are now destined more for foreign supermarkets.
Price
5.75 Licores Corredera


Wednesday, 7 September 2016

The Irish in the Marco de Jerez

The legend that is Sherry was built not only by Spaniards but also by many foreigners who came here for various reasons, be they religious strife, oppression, war, famine or plain commerce. The Irish expatriates, who were known as the "Wild Geese", came for all of these reasons but mainly religious strife and oppression. The emigration started in the 1600s, and by the end of the century tens of thousands had left for a safer life in Europe or the Americas where they developed considerable influence. 

Irishmen occupied all sorts of positions in Spain: Richard Wall was secretary of state; Alexander O'Reilly re-structured the army; Henry Reynolds McDonnell was an admiral; Ambrose O'Higgins was viceroy of Peru; John O' Donohue was last viceroy of Nueva Espana; Leopold O'Donnell was a general and politician, and William Morphy was personal secretary to King Alfonso XII. Those who came to the Marco de Jerez also left a lasting legacy.

George Fitzgerald and his wife Mary Tray came to Jerez from County Kildare near Dublin. Their son, Thomas Fitzgerald, born in 1682 in Jerez, hispanicised his name to Tomás Geraldino y Crocquer and owned various vineyards and bodegas. During the reign of Felipe V, Tomás was appointed Spanish ambassador to London and took the opportunity to promote his own Sherry - and that of others - in his 30 years in the job there. Such was his success that Sherry sales increased dramatically. He died in 1755 and his Sherry interests were eventually bought by Manuel Gil Y Garcia forming later the foundation of Bodegas Carrasco Hermanos.




William Terry came from a large family with various branches in Limerick and Cork and their estates were confiscated by Oliver Cromwell around 1650 because they were Catholics. William arrived in the Jerez area close to the end of the XVII century and set up in trade. Before long he was prospering and owned vineyards, producing wine for export to the Americas. He was famous as a breeder of Cartujano horses and received many civic titles. The firm, based in El Puerto, was latterly known as Fernando A de Terry and lasted till the Rumasa takeover in 1981, later becoming part of Harveys, itself now owned by Emperador. Another branch of the family established Carlos & Javier de Terry, also in El Puerto and latterly known as Bodegas 501 to avoid confusion. These were great firms but not much is left of either of them now.

Felix Harrison arrived and settled in Sanlucar in the late XVII century and established the family as one of the leading cargadores a Indias, dealing in Sherry among other goods. The name was hard for the locals to pronounce and after a while the firm became the Casa del Marques de Arizón.

Henry O’Neale arrived in the area around 1712, having left Tipperary for the same reasons, and fought as a mercenary on the continent. He began a successful merchant business specialising in wine in El Puerto de Santa María which, through successive generations would last till 1983 though latterly based in Jerez, under the name Rafael O’Neale.




Patrick Murphy was of farming stock in the Cork area and arrived in 1725 intending to work with timber. Realising wine was more profitable he established a wine business in 1730. He was a bachelor and not particularly healthy so he was helped by his French friend and neighbour Juan Haurie, to whom he left the business on his death in 1762. Haurie became one of the biggest Sherry producers and the business would eventually become Pedro Domecq.

Richard Shiel began as a successful merchant dealing in Sherry in Cadiz, moving to Jerez in 1827. He was the uncle of William Garvey. For a while he was the partner of Nicholas Devereux in the firm Devereux Shiel & Co. He helped Garvey get started with modest employment at the firm and after its dissolution he helped him financially helping fund early purchases of wine, some from the Scots, Gordon & Co. His wife took over the business on his death under the style Viuda de R Shiel, later leaving it to her son Bernardo and his partner Enrique Ostmann who operated as Ostmann & Shiel until Bernardo's retirement in 1841 when  Ignacio de Urrutia became a partner till 1854.

William Garvey was not really a Wild Goose as he was not forced to leave Ireland. Instead the young aristocrat came in search of merino rams to boost his father’s flocks in 1776. After being rescued from the wreck of his ship and marrying his rescuer’s daughter, he was attracted to the wine business. Bodegas Garvey was established in 1780 and became extremely successful. It still exists, though it languished in receivership for some time thanks mainly to its takeover by Nueva Rumasa, however Emperador bought the firm in 2017 and it may well now have a bright future. 

Thursday, 23 June 2016

23.6.16 Counter Offer for Garvey; Tio Pepe and the Guadalete; Possible Strike?

Just when Lucio Tan’s deal to purchase Garvey and Zoilo Ruiz Mateos required only signatures, Andrew Tan, who recently bought the old Domecq business, now Fundador, has presented a last minute offer. This offer is understood to be better than that of Lucio Tan which was for between 20-25 million euros, so we will now have to wait longer to find out the fate of Garvey, but it is certainly unusual to have people fighting over the purchase of a Sherry bodega. While they share a surname, these entrepreneurs and brandy magnates from the Philippines are not related.



The river Guadalete was used by the Phoenicians to transport goods. These great traders exported agricultural produce from the Marco de Jerez to their cities of Sidon and Tiro. Later, from the XVI century, the Sherry exporters did the same. Butts of wine were loaded onto carts in Jerez and taken to El Portal, the nearest point of the river to Jerez, and thence downstream to the coast at El Puerto de Santa María.  

It was backbreaking work, and in homage to this cultural and environmental history, on Tuesday González Byass staged “Travesía Tio Pepe Guadalete 2016”. Guests could follow this ancient route in a motorised inflatable dinghy and enjoy a glass of Sherry at each stop. At the end of the trip there was a lunch at El Faro. The journey began and ended in El Puerto with experts on hand explaining historical and environmental details such as the Trocadero, the wine quay and the railway.



Over time the river has silted up limiting its commercial use and leading to abandonment, and so it has become a bit of a wildlife reserve, and there are efforts underway to protect and enhance it. Towards the Bay of Cádiz there are old salt pans and the Castle of Doña Blanca. It is said that here, Pedro I “The Cruel” had his wife, Doña Blanca de Borbón murdered. Here also are important archaeological remains with evidence of wine production.

This initiative could have great commercial potential on a consistent basis rather than just a one-off annual event, and some of the money raised could go towards environmental conservation.



Fedejerez is meeting the vineyard unions today in the hope of preventing a possible strike scheduled for September, which would affect the end of the harvest and subsequent vineyard operations. Union sources say they are hopeful of better mutual understanding over pay after previous meetings proved fruitless, and have been cultivating political support stressing the importance of the vineyards to the local economy.

Workers say the bodegas want to reduce wages and keep them on temporary contracts, neither of which is conducive to stable employment. Five years ago they agreed to some hard bargaining to help keep the bodegas going during the crisis and themselves in a job, but now they say that the bodegas have not only survived but become stronger if their results and press releases are to be believed.

Tuesday, 31 March 2015

Garvey “Regains” the Garvey Brands

The pieces of the puzzle of the receivership of the Nueva Rumasa bodegas are slowly coming together. In the case of the Complejo Bodeguero Bellavista – better known as Bodegas Garvey (and once the main activity of the Ruiz Mateos family in Jerez) - the recovery of the Garvey brands, whose registration runs out this year will smooth the way for the receivership which has been under way for 4 years.



Apparently a specially created company, a director of which is also a director of Garvey, has secured the principal brands, among them Garvey, Garvey BV, Bodegas Garvey, Grupo Garvey, the Fino San Patricio range of Sherries and brandy Espléndido. The Ruiz Mateos family kept the registered title to the main Garvey brands via a company in the name of third parties based in the tax haven of Belize, but the court embargoed them to the tune of €9m. The new company’s operation has the approval of the receivers and guarantees the use of the brand names for Bellavista and their inclusion in the receivership, which will make a sale of the production bodega easier and quicker, as this had long been a stumbling block. Maintaining the bodega and its workforce as a going concern is a priority for the receivers and naturally the bodega would be hard to sell without its famous brand names - especially with liabilities of about €90m.

Thursday, 5 June 2014

Manzanilla La Lidia 15%, Garvey

Appearance
Pale strawy gold, light legs.
Nose
Quite young and fresh, slightly floral, hints camomile, hints also of fresh flor, but none of the bitterness imparted by more serious ageing, some delicate salinity and yeastiness.
Palate
Reasonable weight, fresh, still some fruit there and a gentle tang, still that camomile-like flavour, but not particularly salty, doughy or remotely autolytic. This is quaffing Manzanilla, and nothing wrong with that, it is perfect for grilled or fried fish.
Comments
If you look at my post on Garvey's Manzanilla Juncal, there is a rant about what they have done to de Soto's Manzanilla. Well, this is a follow-up, as this bears the bodega name as not only Garvey on the capsule, but also Complejo Bodeguero Bellavista (or Garvey) on the label. Yet the label has a very slightly gaudy full-coloured rendition of the de Soto label! Also, the de Soto image is of a girl refreshing a cowboy with some Sherry. The original Garvey label for La Lidia was an image of the bullfight, (lidia = bullfight). So the label and the name no longer match. I think their marketing lot need to be put in the bullring!
Price
For only 3,50 Euros you don't expect much, but this perfectly serviceable everyday Manzanilla. Not available in UK. Shame at that price!

Soto/Garvey La Lidia
Original La Lidia

Garvey/Soto La Lidia




Sunday, 25 May 2014

The "Garvey Question"; British or Spanish?

An article published in El Diario de Jerez in February 2014 by Juan P Simo

Throughout its history, Sherry has had immense power, and the Sherry business has moved all kinds of mountains, has built entire cities, has controlled the lives of its people for centuries, ruined and swallowed up whole families, and brought prosperity to generations of others. For that alone, the history of Jerez could never be understood without its wine. And if many of those first captains of industry, the first Sherry barons, went bust in the attempt, many others built up fortunes enough to keep the next three or four generations going.

In Jerez there have been incalculable fortunes. Imagine the legacy of Manuel Maria Gonzalez Angel, founder and patriarch of Gonzalez Byass, or of his son, Pedro Nolasco Gonzalez y Soto and of many other legendary names. Pedro Domecq Lembeye, the first of the Domecqs to come to Jerez, left the “trifling” sum of one million pounds to his brother Juan Pedro, not having any masculine heirs. {How things have changed, thank goodness!} Or Juan Pedro Aladro, Pedro Domecq’s adopted son, who died leaving a legacy of more than two million escudos.  We could get lost in a sea of unbelievable figures for the period.

William Garvey Power already came from a line of aristocrats when he came from county Waterford in Ireland to the bay of Cadiz in 1776. He set out with the idea of acquiring some merino sheep for his father, when his ship was wrecked and he was rescued by Captain Rafael Gomez, whose daughter he later married. Here he spotted the enormous possibilities of the Bay of Cadiz, and changed his plans to dedicate himself wholly to the wine business.

William Garvey, who started it all
The “Garvey Question” arose with his son Patrick (Patricio) Garvey Gomez, who married in 1826 Maria de los Angeles Capdepon y Lacoste, a young girl from a French family with a large fortune, who would bear him eleven children. Only seven survived; three boys and four girls. The sons were Guillermo, Patricio and Jose. Patricio went on to marry Consolacion de la Mota Velasquez-Gaztelu, but Guillermo and Jose remained bachelors.

Little is known about Jose Garvey, who was born in Jerez and dedicated much of his work to the family firm. On his death in 1912, and given his state of bachelorhood, he made his will in favour of his nephews and nieces, Luis, Angeles and Blanca Medina Garvey as well as to Angeles and Dolores San Juan Garvey, and on the other side to Jose Lopez de Carrizosa, Marques del Merito, another of his nephews.

What he bequeathed amounted to a fortune of 42,152,777.37 pesetas {have you noticed how the currency keeps changing?} which he possessed in English and Swiss banks, an almost unimaginable fortune, but there was more; his deposits in Spanish banks amounted to some 3,942,480.37 pesetas, a most respectable amount for those days.

The problem arose when Hacienda Española – the Spanish tax authority – opposed the legacy being governed by English law as opposed to Spanish law. The case was complex and certainly long drawn out, being published in El Parlamentario, which followed it step by step during 1916 in the book “The Garvey Question: A Case in Law”. Over three years, two hundred and fifty pages were filled, covering the ins and outs of judicial hearings until the case ended up at the Supreme Tribunal. Here, the Garvey case was corroborated, Jose Garvey was deemed to be a British subject.

This was not so much a fiscal case, but one of volition: the volition of a Jerezano, Jose Garvey, who felt that he was a British subject, not a Spanish one. The Spanish case was not unreasonable in that, unlike his father Patrick and his grandfather William, he was a Jerezano by birth, and by dint of that he had felt obliged to obey certain Spanish laws, including doing military service, and later, being included in the electoral roll, casting votes.

It might be concluded that these two matters would constitute overwhelming proof of his being Spanish, but the Spanish authorities had never precluded anyone of British nationality from serving in the army. The same authorities made a big mistake, however, by including him, as a British subject, in the electoral roll, meaning his votes were illegal.

Jose, just like his father and grandfather, were British subjects, and were registered as such at the British Consulate in Cadiz, the British Vice-Consulate in Jerez and also at the Civil Government in Cadiz. Furthermore, the three of them travelled on passports issued by British Consular agents, passports which had been authorised by Spanish diplomats who had recognised them as British subjects. At the same time, none of the Garveys had made any effort to become Spanish subjects, so three generations of Garveys scrupulously held on to their British nationality. They never renounced it nor made any effort to take Spanish nationality.


The court’s ruling was clear. The socialist MP Pablo Iglesias took it himself to the Spanish Parliament. There was no reason for Hacienda to tax the inheritance of a British subject. The Inland Revenue of Britain, however, was the winner, having received annual income tax from Jose Garvey, seen by them too, as a British subject. The Garvey legacy was paid out in England. Interestingly, the Garvey family came from Ireland, not really Britain.

Wednesday, 12 March 2014

12.3.14 Single buyer sought for Garvey and Zoilo Ruiz Mateos

The administrator of bodegas Garvey (the huge Complejo Bodeguero Bellavista) and bodegas Zoilo Ruiz Mateos are looking for one buyer for both bodegas, since both the ex Nueva Rumasa concerns share production facilities. Both are still active going concerns, with Zoilo employing 70 people, and owning bodegas and 400 ha of vineyard. The hope is that the two companies can be sold within the next six months.

Some vineyard and stock of wine has already been sold in order to provide some money for the company to meet expenses. The sale will include all the Garvey brand names, and a protective embargo has been put on them. Also embargoed as a precautionary measure are Grupo Garvey registered names, such as Bodegas Garvey, Garvey, Garvey BV among others, actually owned by Engel Overseas Ltd of Belize.


The brands of Zoilo Ruiz Mateos do not have this problem, as the bodega is the exclusive supplier of Sherry for Sandeman. This relates to a deal from 2004 by which Nueva Rumasa took over the entire bodegas and vineyards of Sandeman - but not the brand – which Rumasa desperately wanted. Anyway, Garvey and Zoilo both belong to Back In Business, whose owner, Angel de Cabo is in preventive custody for fraud with Marsans, a travel company.


While there are no firm offers on the table yet, there has been interest from agricultural alimentary companies from outside the Sherry zone. Let us hope this sale can be brought to a successful conclusion, and that both bodegas – or all three if we include Sandeman – can get on with producing top notch Sherry without worry about their future.

Monday, 15 July 2013

Oloroso Ochavico 19%, Garvey

Appearance
Deep mahogany amber fading toward yellow at rim, legs.
Nose
Fairly pungent with savoury notes of Marmite on toast as well as touches of implied sweetness, damp barrels, walnuts and clean oxidation, open and frank, very oloroso.
Palate
Fairly intense, just a hint of sweetness there along with roasted nuts, traces of raisin, barrels and a good solid texture. Not a particularly old wine, perhaps about 8-12 years, but very sound. It has real depth.
Comments
I don't know very much about Ochavico at all, what with the bodega virtually closed down, there is nothing forthcoming. I'll add any info as it comes to hand.
Price
I'm guessing a UK price would be about £12, but as far as I know nobody is importing it at the moment.




Tuesday, 18 June 2013

18.6.13 More trouble for Ruiz Mateos

Lawyers working on behalf of Hacienda (Inland Revenue) is asking for Jose Maria Ruiz Mateos, his son Alfonso and three others to be jailed for seven years for irregularities in the sale of two fincas (estates) owned by Garvey. The case involves evasion of corporation tax and VAT. Furthermore, the accused have to put up a total of 3,100,000 to indemnify Hacienda if found guilty, which is quite likely.


Saturday, 23 February 2013

23.2.13 Various News Items


The XVII Festival de Jerez got underway last night with various flamenco acts with dancing, singing and music at the Villamarta Theatre. The Gala Inaugural was criticised for its length, partly for unnecessary extras, but was nonetheless a success, and a great start to the festival.





Garvey is selling its last two bodegas. The Complejo Bellavista and bodega Zoilo Ruiz Mateos will be sold together in the summer, although a price has not yet been fixed. In April it will be two years since the administration proceedings began, and a meeting will be held soon with management.

The actual owner of the bodegas, Angel de Cabo, through his company Back in Business, is in custody for suspected fraud concerning a travel agency business, and the possibility of him running Garvey and ZRM has been ruled out. The workforce, which has been much reduced over the last few years as the company’s debt spiralled to 250 million euros, along with the management, would like the business to be sold to someone who would continue it as it is.

According to accounts supplied by Back in Business, the value of the business minus its debt stands at a negative figure of 18 million euros if the distribution company Union de Grandes Bodegas is taken into account.


Meanwhile the Ruiz Mateos family, once owners of the bodegas as Nueva Rumasa, are being pursued through the courts. The labyrinthine nature of their affairs, however, will make it very difficult to secure convictions. In the family itself, everyone is falling out with each other and blaming each other while their creditors and investors will likely get nothing.


Ruiz Mateos and his six sons 

Lustau recently gave a tutored tasting of a range of its wines to students of the prestigious Oxford University Wine Society at Exeter College, founded in 1314. Around 50 students were given a talk about the bodega followed by a tasting of the wines by Federico Sanchez Pece, brand ambassador.

Sunday, 28 October 2012

Good News for the Sector, and for Garvey 28.10.12


The Audiencia Nacional annuls Sherry sector fines for agreeing grape prices.

The Audiencia Nacional (National Court) has annulled fines imposed on the Consejo Regulador and the association of cooperatives AECOVI by the CNC (Comision Nacional de Competencia – roughly our Office of Fair Trading) for agreeing grape prices, some of which were initiatives from the Andalucian Ministry of Agriculture as part of the Strategic Plan 2002-2006.

The Court took into account that the pricing agreement was done in good faith under government scrutiny and was intended to address the oversupply problems in the Sherry zone.  Other organisations in the trade are now expecting their fines to be quashed. The growers are delighted, as the fine would be almost impossible to pay given the current hard times.

The grape pricing fines were the third measure initiated by the CNC. They had previously imposed fines on the trade of a total of 8 million euros. The first of these was for discriminatory sales quotas, for which the Consejo was fined 400,000 euros, which the Court reduced to 100,000. The second imposed fines of a total of 7 million euros on Fedejerez (the association of Bodegas), the Consejo and various individual bodegas. This is still awaiting resolution at the Court.

(Diario de Jerez)

Garvey back to profit

After 18 months in administration and drastic staff cuts the old-established firm is almost back on its feet. There are now only 53 staff, and those on reduced salaries, but nobody talks about Ruiz Mateos, their eyes are focused on the future. The worst may be over, but there is a lot to be done, not least on the financial side and the administrators are trying to avoid bankruptcy. Since the owner Back in Business was relieved of management of the firm, it it is verging on profit after taxes and suppliers were paid.

Things are difficult, but the bodega has never stopped working and has sufficient stocks to supply demand. Prices have had to rise and a few clients have thus been lost, but some have returned. The firm is actively seeking new customers and is abandoning the cheap and unprofitable BOB (Buyer’s Own Brand) Sherries. Confidence in Garvey is gradually returning, both from suppliers and clients, and it seems that the bodega will be able to stand on its own two feet without depending on being part of a group. The staff are motivated and kept informed of any movement in the administration. It is possible that Garvey might merge with Zoilo Ruiz Mateos, also in administration.

(Diario de Jerez)

Thursday, 25 October 2012

News from Jerez 24.10.12


Garvey staff call meeting to find out what is going on

Garvey is two months in arrears with staff pay and has severe liquidity problems, so the unions have called meetings with the staff and management of the four Nueva Rumasa bodegas  (Garvey, Zoilo Ruiz Mateos Teresa Rivero and Valdivia) for Friday as they have had no news for months about what is going on with the receivership. Workers’ representatives will seek an early meeting with the judge of the mercantile court. 

Valdivia is awaiting a judicial decision before being put up for sale. Teresa Rivero – formerly CAYDSA – is in deadlock over the reduction of staff. The management of the bodega hopes to revert to the pre-Nueva Rumasa cooperative status as its sale was never properly finalised (paid for) by the Ruiz Mateos family. These are the two smaller bodegas, going through an abbreviated process. 

The bigger two, Garvey and ZRM have seen swingeing staff cuts – more than half at Garvey and over 20 at ZRM, and there has been little management since the judge removed management authority from Angel de Cabo, the actual owner of Nueva Rumasa. What with the liquidity situation, the bodegas have had problems securing raw materials, and have been steadily losing customers.

Saturday, 28 July 2012

News from Jerez 27.7.12

The judicial net is tightening round  the Ruiz Mateos family.

Following preventive measures adopted by the Granada Mercantile Court to prohibit any attempt by the family to transfer the brands of Dhul (a desserts producer) to third companies via companies they own, the Trades Unions are seeking an injunction on the Garvey brands to avoid their possible transfer. "Without the brands there is nothing". The Ruiz Mateos family still owns the registered title of the Garvey brands, the exclusive rights of use of which are assigned to Complejo Bodeguero Bellavista (the Garvey bodega) until 2015. The bodega's administrators consider the potential loss of the brand names is an added risk to the running of the business, as do the firm's actual owners, Back in Business, in their viability plan.

It seems that the Ruiz Mateos family have tried to register the Dhul brand names to spurious third companies they also own under a spurious holding company in Belize so that they can be kept out of  insolvency or expropriation proceedings. The unions are worried the same could happen at Garvey after 2015.

Sunday, 24 June 2012

News from Jerez 23.6.12

Department of Employment approval appears to be imminent for the agreement between the workforce and the administrators of Bodegas Valdivia to terminate 10 out of 12 employment contracts. According to sources  who know, this is a likely prelude to liquidation, a fate also faced by Garvey's 2 main bodegas: Complejo Bodeguero Bellavista and Zoilo Ruiz Mateos, bought from Nueva Rumasa by Back in Business. The workforce have reluctantly agreed mainly because they have faith that Valdivia will be bought by another firm. Three are said to be interested, including an american multinational who would retain the workers.

Moving on. According to the latest report from Rutas del Vino de Espana (Spanish touristic wine routes) which covers 2011, the Jerez area is the most visited with a total of 480,767 visitors. The Rutas del Vino comprise 21 routes and 546 bodegas, and are to be thoroughly recommended.

Monday, 28 May 2012

The Rumasa Saga: part 1

The Rumasa (RUiz MAteos S.A.) story deserves to be written by a skilled potboiler novelist, as it is filled with scandal, corruption, skullduggery - and even humour. It might even make a good film.

The undoubted leading man, or perhaps antihero, in the tale is Jose Maria Ruiz Mateos Jimenez de Tejada, born in Jerez in 1931 whose father, Zoilo Ruiz Mateos Camacho, had a small almacenista business of the same name originally established in Rota in 1857. Jose Maria was the more ambitious and business-like of Zoilo's sons, and from about 1960 quickly started building up the firm, which had by now moved to Jerez. It's consequent growth was quite phenomenal. So phenomenal, in fact, that nobody could quite believe it.

Most of part 1 of this tale took place under the dictatorship of General Franco, who by supporting the Catholic Church received its support in return, especially from ultra-Catholic Opus Dei. This is a group of mostly lay people who believe that ordinary life is a path to sanctity, and do charitable works, but it has been accused of secretiveness, elitism, and support for the right wing, not to mention cronyism. The Franco regime began a liberalisation of the economy in 1959 using many technocratic ideas of Opus Dei such as credit for business, help with export and redevelopment of deprived areas, but this only led to almost inevitable large scale corruption. Strangely, many members of Opus Dei benefited enormously, and our Jose Maria was only one. Rumasa could only have grown the way it did with state help. One of the Ruiz Mateos family was related to the Director of the Institute of Credit; the older sons of the Governor of the Bank of Spain worked for Rumasa.

In 1964, having badgered them for some years, Ruiz Mateos signed a deal with Harveys of Bristol to supply all the wine they needed for 99 years. He went to extraordinary lengths to prove to the Harveys executives that he could meet their needs. At that time Bristol Cream, and other Harveys brands were huge sellers, and RM could never supply all their needs, so another bodega was bought. The Harveys money along with credit was used to buy a bank to finance more bodegas and so on. In 1960 the company was worth 300,000 pesetas, and by 1969 it was worth 2000 million, and by the time of its demise it consisted of around 700 subsidiaries in Spain alone as well as others abroad, including 18 banks (he famously bought three banks in one day), 18 bodegas, construction firms, insurance companies, estate agencies, hotels, food and drinks companies etc etc. worth 111 billion.

The firm´s vineyard division, Viñedos Españoles, planted some 2,000 hectares in Jerez alone (bringing the total to 22,000 ha) and they controlled 33% of the Sherry industry and 25% of the Brandy industry. Rumasa´s hexagonal busy bee logo was to be seen everywhere. Other firms viewed Rumasa with considerable and justified suspicion; this was no longer the gentlemanly Sherry business of old and quality was being sacrificed for quantity. The big firms had an agreement that they would help each other in case of an attack by Rumasa. Its affairs were labyrinthine, and it was beginning to owe the tax man big time.

The global oil crisis of 1973 brought a dramatic reduction in sales and affected the Sherry industry decisively creating a situation of oversupply of some 46%. At that time 400,000 butts were being produced and sales were running at 270,000. This caused a price war which Rumasa was determined to win at any cost and Sherry was sold below cost forcing other firms to try and compete with many going bust and being bought up by Rumasa. When the government offered subsidies to promote exports, Rumasa exported vast quantities of wine, much of it of doubtful quality and whether it was actually sold or not, and stored it in warehouses in the UK. The Augustus Barnett wine retail chain, owned by Rumasa, had huge stocks of Sherry at knockdown prices. Things did not augur well for either Rumasa or the industry itself.

One nail in Rumasa's coffin came in the form of the takeover of Harveys by Showerings in 1965 and the purchase of the old bodega MacKenzie as a base in Jerez. Harveys were already suspicious of Rumasa and the exclusive supply contract was cancelled. Meanwhile International Distillers and Vintners (IDV) built a whole new bodega complex called Rancho Croft, using the name of their long-established Port subsidiary. Gilbeys (the oldest part of IDV already had soleras in Jerez at Gonzalez Byass). It was at Rancho Croft that the first pale cream sherries were produced and they soon provided stiff opposition to Harveys.

In 1983 the Socialist government of a newly democratic Spain decided to get the tax it was due, and expropriated the component companies of Rumasa, going through their books with a fine toothcomb and finding, needless to say, endless tax fiddles and a web of complicated interactions. Jose Maria fled to the UK and was later arrested in Frankfurt. For the next decade or so there was endless litigation - at one court case he appeared dressed as Superman - and he counterclaimed against the Spanish Government, seeking compensation. He was eventually, and controversially, absolved by the Supreme Court, but was refused the compensation he had bitterly contested for Williams & Humbert, which went to the Dutch firm Ahold. This was complicated by the fact that the Ruiz Mateos family owned the Dry Sack brand name while Rumasa owned the rest.

This was, apparently, the end of Rumasa. The component companies had been sold off by the Government back to the private sector, and life in Jerez returned to something like normal, though in fact much had changed. Many of the subsidiary bodegas had by now lost their individual identities, having been swallowed up by bigger concerns within the group, and many famous names disappeared. Names like:

AR Ruiz Hermanos.
Union de Exportadores de Jerez
Palomino & Vergara
Marques de Misa
Varela
Diestro Hermanos
Otaolaurruchi
Diaz Morales
Valderrama
Vergara & Gordon
Bodegas Internacionales


Those which survived more or less intact were:

Williams & Humbert
Garvey
Diez-Merito
Bertola
Pemartin