Bodegas Gracia was founded by Francisco Gracia Naranjo, who formed his winery in the heart of the town of Montilla, near the famous arches of the Aguilar Gate. The winery has since expanded, with the purchase of vineyards, aging vessels and acquisition of other companies.
Montilla-Moriles, known as the cousin of the D.O. Jerez-Xérès-Sherry, is about 150 km. away from Jerez. It lies to the south of Córdoba, with the small towns of Montilla and Moriles at its centre. The region is generally a bit drier than Jerez, with more drastic diurnal shifts, less rainfall and particularly hot summers - favorable conditions for growing Pedro Ximénez, the region’s most commonly grown variety. DO status was granted in 1945.