Viticulture was established by Spanish settlers in the 17th century. It was in the second part of the 19th century that a Basque named Pascual Harraigue introduced the Tannat grape variety, originally from Madiran, which would become the emblematic grape variety of this country. This produces dense wines with powerful tannins but softened by the mild Mediterranean climate of Uruguay. In the 1970s, the Uruguayan wine industry shifted towards producing finer, higher quality wines, although within 20 years the country managed to achieve a reputation worthy of its wines.
Considered one of the most environmentally friendly countries in the world, Uruguay is also the fourth largest wine producing country in South America. But unlike its neighbors (Chile, Argentina and even Brazil), Uruguay is more in tune with its European parents where small land holdings are most common. Most Uruguayan farms are tiny (around five hectares on average) and family-owned, many dating back several generations. At this size, producers produce small quantities of wine for local consumption or sell grapes to a nearby winery. Across Uruguay, there are nearly 3,500 producers, but fewer than 300 wineries. On these small plots, manual labor, harvesting and low yields are favored. This small agricultural country has never needed chemical fertilizers or insecticides on a large scale. Their thriving meat industry follows the same standards: hormones have been banned since 1968 and today, all Uruguayan beef is organic and grass-fed. Uruguay's best vineyards are on the Atlantic coast, in Canelones and Maldonado (where cooling breezes reduce humidity) or are near its border with Argentina.