Santa Fe, Argentina
Last time I wrote to you, I was deep in Patagonia—where the lakes whisper peacefully, and the air feels untouched by time. Now, for New Year’s, I find myself in a very different Argentina.
This time, in the heart of its agricultural belt; the land of corn, soy, wheat, and cattle. Santa Fe.
Think of it as the Arkansas of Argentina.
Our host mentioned something unexpected: this region sees the second-highest number of tornadoes in the world. A place of extremes, both natural and man-made. Once a land brimming with promise, the scars of poor governance and heavy-handed intervention now run deep.
Rusting silos stand like tombstones of a more prosperous past. Tractors that should have been retired decades ago wheeze across the fields.
We drove five hours from Buenos Aires to get here, with a few pit stops to break up long stretches of highway monotony. It was during one of these stops that reality hit: a coffee-and-croissant combo at the gas station? Eight bucks.
That’s the kind of price you’d expect in Paris or New York—not rural Argentina.
Prices are high across the board. As I stood sipping my overpriced coffee, I couldn’t help but think about the small farms and wineries.
The boutique operations—family-run, like the farm I’m visiting—are the ones that feel the pinch the hardest. When costs climb, the big players can often weather the storm. It’s the small ones who struggle.
Hours later, we raised a glass on a third- or fourth-generation farm surrounded by endless cornfields. It was New Year’s Eve, after all—a moment to toast not just the arrival of a new year, but the resilience of those who make a living from this land. They face rising input costs, sky-high inflation, and shrinking margins.
It’s not just the farmers here; it’s the winemakers in Salta and Mendoza, too.
After all, winemakers are farmers themselves. Coaxing greatness from the earth with nothing but hard work, patience, and a little luck.
And yet, for now, our wine club members are in a rare position. Because we source ahead to avoid volatility—paying our winemakers upfront—the wines you’ve bought, and the ones you’re about to buy, are still offered at prices on par with what you’d find here in Argentina.
It’s a sweet spot, but it won’t last forever.
In fact, our next Argentine Collection—set to be released late this month—will feature more of these incredible wines. Deals we’re proud to offer. But even we don’t know how long this moment will last.
Inflation has a way of catching up, even to the most carefully planned operations.
And yet, the question lingers: Is now the time to invest in Argentina?
This country’s history gives every investor pause. But it’s that same volatility that creates opportunity.
Beyond these struggles, something is stirring in Argentina. GDP grew nearly 4% in the third quarter, pulling the country out of recession for the first time in years. Inflation—once a roaring beast devouring 25.5% of purchasing power monthly—has plummeted to just 2.4%. The country’s risk rating has fallen to its lowest in half a decade, and foreign goods are flooding back into stores.
The changes are dramatic, driven by what Joel Bowman calls “The Greatest Political Experiment of Our Age.” Under President Milei’s sweeping reforms, government spending has been slashed, regulations dismantled, and the Argentine peso has made an improbable comeback as the strongest-performing currency in 2024.
Joel—my friend of nearly 15 years—spent New Year’s Eve with us. You might know him from his years writing with Bill Bonner, whose work remains a gold standard for insight into markets and geopolitics. Joel’s newsletter, Notes from the End of the World, captures this pivotal moment in Argentina’s history.
He usually asks me about wine, and I ask him about geopolitics. Many afternoons have turned into nights over bottles of malbec. There’s something about wine and politics that feels like a natural pairing—both complex, unpredictable, and deeply human…
As we ring in 2025, let’s raise a glass to the small farms and wineries. The resilient ones. The ones who pour their hearts into everything they produce.
They’re the reason we’re here—and the reason you’ll always have something extraordinary to enjoy.
In vino veritas, indeed.
And like a good malbec, Argentina never fails to leave a lasting impression.
Here’s to a year full of great wine, bold opportunities, and unforgettable stories.
Happy New Year!
Diego
