A legend explains that Pedro Jimenez originates in the Canary Islands, whence it journeyed to the Rhine, to be finally returned to Spain in the 16th century by a German soldier under the orders of Carlos V called Peter Siemens, or Pedro Ximén. Over time it was introduced successfully in Jerez and extended all over the South of the Peninsula.

It is also one of the most important varieties in Argentina, where it was used for making sherry, as well as in Chile, Australia, South Africa and New Zealand. Curiously, the Russians confuse Pedro Jiménez, which they do not know, with Moscatel and call its wines PX Krimsky (PX Crimea.)

The largest area of Pedro Jimenez wine production is concentrated in Montilla-Moriles. The people of Cordoba and Jerez agree in their modes of classifying and identifying their Finos, Amontillados, Olorosos and Palos Cortados, created in both cases with the traditional Soleras and Criaderas system. The only difference resides in the variety of grape: Palomino in Jerez and Pedro Jiménez in Cordoba.

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