There are supposedly some 16,000 vineyards in Argentina being fed by the runoff water from the Andes Mountains and depending on whom you talk to, some 1,200 to 1,700 wineries. 

“There’s no way to really know how many wineries are here,” says Charlie O’Malley, who edits The Grapevine magazine and runs Grapevine Wine Tours with his partner Kelly Thornhill. “New ones are opening all the time and there’s always the issue of who has officially filed the right paperwork or not.” Then there’s the geography. Mendoza is the main wine province, but good wine is also coming out of Salta Province in the north and Patagonia in the south.

There’s no dispute about the growth path, however. Argentina’s wine exports topped $350 million in 2004 and $400 million in 2005, according to the country's Institute of Wine.

Over the past decade, the industry has collectively invested some billion and a half dollars in the latest technology and has been quite successful in marketing their wines, especially their signature Malbec, to the world. The country’s wines have gone from jug wines mostly meant for local consumption to ones that are winning awards against the best from the U.S., France, and Italy. 

His company, English Associates (), takes potential investors by the hand and not only leads them through the purchase process, but helps them start and run the actual vineyard through the start-up and production phase. 

Finding Local Expertise
“We work with the client to help them find the right property, on a consulting fee basis,” English says.

“But then we continue to work with the client after they have made the purchase. We look after their investment and develop it, find the right local people, and become their local eyes and ears on the ground.” 

“The market here is very hot, with foreign investors taking advantage of the gap in values,” he adds. “With prices rising dramatically in some areas and no accurate records of real estate sale prices, it’s easy for someone to get suckered. By looking at hundreds of properties a year, we have a good feel for real values. Since we’re not a real estate agency, we can also be impartial about what’s the best option for the buyer and give the person advice that’s not tainted by commission considerations.”

English hails from Nashville, Tennessee, in a region better known for Jack Daniels and George Dickel American whisky than for wine. There he owned a company that licensed music industry trademarks (such as Gibson and Steinway) and developed licensed merchandise for sale in overseas markets. 

Ten years ago, at a Rotary Club meeting in his home town, he found out about a group study exchange program where participants spend 6 weeks visiting another country, seeing other businesses and staying in homes of business owners. He followed up on it and in 1997, was selected for the scholarship and spent a month and a half in Patagonia. “I fell in love with the country and people,” English explains, “and I kept coming back on subsequent trips, always looking for opportunities.” Eventually he fell in love with another aspect of Argentina—his wife Carolina. 

English got into the wine business by default. He started out offering general business services to foreign investors and foreign corporations, helping people set up locally or form partnerships. He dealt with the locals and mitigated the investment risk. Word soon got out to wine investors and real estate consulting followed. “Because of where we are in Mendoza, most of the companies and individuals who came to us were looking to invest in or partner with the wine business,” he explains. 

English sees his role as helping people find success by keeping them out of trouble. “The most important offering from us has been in keeping people from totally messing up. Sometimes we’re successful by telling people not to buy a property. We keep them from spending $200,000 for something that wouldn’t work out as a vineyard.”

How NOT to Buy a Winery
Hubris often leads to an investor’s downfall in the wine region of Mendoza. The most famous example in these parts is a failed investment by the Kendall Jackson company of California. They came down to Argentina in 1996 with their own staff and an attitude that they knew exactly what it would take to launch a successful winery in the area. They reportedly spent close to 8 million dollars. In 2003 they declared the adventure a bust and ended up selling the winery for $2.5 million.

For those not doing the math, that’s a loss of $5.5 million after 7 years of work. One of the most common mistakes wine investors make is not making an attempt to understand the people, the culture, and the way things work in a foreign country. “Ideally, you do it methodically and slowly and you don’t need someone like me so much,” English says. “In the best case you would come down here and live for a couple of years first. Then buy when you know the country, the people, the region, and the language. At that point you understand the culture, what the risks are, and what it is really like to live here. Most people do tend to jump into things too quickly.”

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