Vineyards in Mendoza, Argentina: A Profitable Hobby?

Photo courtesy of ArminFlickr via Flickr.

Have you ever fantasized about owning one of the vineyards in Mendoza, Argentina? It might not be as far out of reach as you might suspect. If you want to invest in the Malbec boom, you can be part of a subdivision of vineyard estates with an agronomist and winemaker. One developer says:

We have started our Tierra Mansa South project; a project dedicated to building luxury homes on 1.5 to 4 acre parcels of prime land planted with Malbec vineyards. For investors looking to produce significant rental income when not using their home, we will operate these homes like an upscale luxury hotel, complete with concierge and turnkey travel planning services.

You only need to find customers for the wine; hired managers plant the vines, maintain the vineyard, harvest the grapes, and produce wine.

Photo courtesy of JimG via Flickr.

Not only are vineyards in Mendoza far cheaper than in California and Europe, but winery tourism in Mendoza has been booming since 2002. There are several subdivisions catering to foreign investors who don’t want to make many decisions, including Finca Los Amigos, Santa Maria de los Andes, Las Paredes Estates, and Vines of Mendoza.

Malbec from Argentina is growing faster than carmenere from Chile:

Some recent statistics confirm that Argentine wine has firmly established itself on foreign wine shelves, especially in the United States. Sales of 222 million dollars to the Northern colossus (the only major wine producing country in the world that does not produce enough wine to satisfy domestic consumers) means Argentina has knocked its Latin America wine rival Chile from the fourth spot regarding exports to North America.

Mendoza Malbec from Vines of Mendoza, courtesy of Longhorn Dave via Flickr.

Mendoza is the second most popular tourist destination in Argentina, behind only Buenos Aires. The region around Mendoza is the largest wine producing area in Latin America.

Inflation in Argentina is high, so it is difficult to predict costs of labor and supplies, and property has not historically been protected well. However, I have not heard of any vineyards in Mendoza that the government has stolen.

Vineyard in Mendoza with Andes background, courtesy of Wikipedia.

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2 Responses to Vineyards in Mendoza, Argentina: A Profitable Hobby?

  1. Argento Wine says:

    The best foreign winemakers have finally discovered what Argentinians have long known: that some of the best growing conditions and terroir exist in Mendoza. Andrew Catchpole recently posted an article about the influence of foreign winemakers and investors in the Argentina wine scene… check it out:

    • Mark says:

      Thanks for the pointer to the great article! I agree with the author that, “a developing country’s economic health can in part be judged by the foreign investment it attracts, then by the same yardstick Argentina’s wine industry appears to be in fantastic shape. Some of the biggest names of the global wine fraternity been drawn here, and they have all come to make high quality wines.”

      “They have decided of their own volition, and with their own money, on Argentina as their preferred vinous Eden. It all adds up to a huge vote of confidence in the future and quality of Argentinian wine.”

      I’d like to know whether Argentina really is a better place to invest than Chile. It could be that Argentina has better salesmen than Chile. The Argentines speak English and Spanish better than Chileans, so that gives them an advantage. Another possibility is that the soils are better in Argentina; or, it could be that Malbec tastes better than Carmenere.