Wine Importing and Marketing Services

In Puerto Rico, A Century-Old Policy Hinders the Rise of Natural Wine

Wine selection and exterior at Bar La Penúltima in San Juan, Puerto Rico /
Credit Ricardo Hernandez

When Laura Madera welcomes guests to Pío Pío, the restaurant and wine bar she co-owns with her husband, Chef Ciarán Elliott, in Old San Juan, Puerto Rico, the first thing she discusses is the wine list. The 25-seat space serves more than 90 wines, including bottles from Spain and California, plus an array of natural wines.

“The natural wine market is growing,” says Madera. “People are learning of it and how good it is, eliminating paradigms that natural wine is just funky and cloudy.”

Pío Pío is part of that paradigm shift. Madera pairs natural wines with small plates that highlight local ingredients, like lionfish with carambola ceviche, or greens in an herbaceous silken tofu dressing.

Laura Madera, co-owner, Pío Pío / Photos by Cristina García

But wine lists in Puerto Rico haven’t always been so diverse. Over the last decade, natural wine gained popularity across Europe and in cities like New York in the continental U.S., but, like all imported products, the natural wine market faces numerous challenges in Puerto Rico. Chief among them is the century-old Jones Act.

Also known as the Merchant Marine Act, and imposed by the U.S. government in 1920, this law requires that goods are shipped from the mainland to Puerto Rico via American-owned and -staffed boats. While the intention of the policy was to establish and develop support for the Merchant Marines, in effect, it elevates the cost of non-local goods in places like Hawaii, Alaska and Puerto Rico.

That’s because it’s often more expensive to operate U.S. vessels than many foreign ones, so the products these boats carry must be priced accordingly. For example, shipping goods from the East Coast of the continental U.S. to Puerto Rico costs $3,063, but shipping the same container to Kingston, Jamaica, costs only $1,687.

Bar La Penúltima / Photo by Ricardo Hernandez

This gives less flexibility to wine distributors and sellers. While all imports are negatively affected under the Jones Act, restrictions are especially challenging for small-scale producers. Large conventional wine companies may be able to lower prices on certain bottles in certain markets, whereas independent producers behind natural wines have fewer logistical options.

“The Jones Act will always create a lack of free competition,” says Rolando Lucca. He and his brother co-own Hermanos Lucca, a wholesaler, and a wine bar, Singular, at Convento in Old San Juan.

Lucca imports natural wines from Jenny & François Selections, AR Wines and Ariana Rolich, a producer and importer of natural wines from Spain.

“We buy directly from producers and also with the importer who has been the first link or mediator,” says Lucca. He adds that he feels “fortunate” to represent Jenny & François and AR Wines in Puerto Rico.

Willie (left) and Rolando (right) Lucca of Hermanos Lucca / Photo by Jose Perez

The archipelago represents a considerable market for the global wine industry. Residents of Puerto Rico consumed 5.15 million liters of wine in 2017, and Puerto Rico imports more than 10,000 different labels by year. According to the Economic and Commercial Office of the Embassy of Spain in San Juan, red wine has approximately 43% of the market share, followed by white wine with 15.7%. Most of these wines are from Spain and U.S., followed by 10% from Chile and Argentina.

Wine sales decreased by 1.63 million liters, or approximately $43 million, since 2017, however, as a result to price increases that analysts believe were due to the fluctuating cost of fuel as well as the Jones Act.

“The Jones Act will always create a lack of free competition.” —Rolando Lucca, co-owner, Hermanos Lucca and Singular

Stephen Hoppe, owner of Bar La Penúltima in San Juan, recently launched Scuola di Vino to import and retail Italian wines in the U.S. and Puerto Rico. He believes that the Jones Act makes wine much pricier than if the archipelago were able to trade directly with producers.

Wine professionals in Puerto Rico say the pandemic has worsened the situation.

“A crate of wine shipped to Puerto Rico used to cost between $10,000 to $12,000 but now, it is $18,000 to $20,000,” says Michelle Negrón, cofounder of Flash: Wine for Light, a natural rosé made in Terra Alta, Spain.

Lucca agrees. “At the end of the day, it is an expensive system and all this inflates the value of the products,” he says. “To all this, add that the tax for alcoholic beverages in general are very high, so basically it is double taxation.”

Wines at Singular / Photo by Joshua Cruz

Since 1898, Puerto Rico has been an unincorporated territory of the United States. Residents have been U.S. citizens since 1917 but do not have voting power in Congress, nor for U.S. president. This makes change slow and difficult. In January, newly elected President Joe Biden signed an executive order to strengthen and enforce Jones Act provisions.

Despite the pitfalls, the natural wine market continues to grow.

“The market is changing and evolving thanks to wine platforms that educate,” says Gina Micheli, sommelier at Vianda, and founder of Mixx and Somm. Residents of Puerto Rico who’ve enjoyed natural wine in places like Brooklyn “want to have that same experience here, [so they are] pushing distributors to bring more diversity to the market, and more young people are getting involved.”

Puerto Rico relies on imports for 85% of its food, but a younger demographic expresses interest in local agroecological farming and are concerned with how their food and drinks are grown and produced.

“The natural wine market is growing.” — Laura Madena, co-owner, Pío Pío

This mindset changes what many residents buy and consume. Nowadays, when you walk into Bar La Penúltima, the entire crowd isn’t downing cans of Schaefer beer and shots of Don Q rum. Instead, you see bottles of natural wine, in the center of patio tables, being shared and discussed among friends.

“People are looking for quality, organic products, which were not harvested with chemicals, fertilizers, and pesticides,” says Negrón.