Located in the central west of Portugal (until the 2008 vintage it was called Terras do Sado), this region is defined under this name as an IGP area (country wines). The area was already classified as a quality wine-growing region in 1907, second only to the Port wine region. It is named after the Península Setúbal peninsula immediately adjacent to the capital Lisbon. The large area encompasses the peninsula, but extends another 60 kilometres south along the Atlantic coast to the mouth of the Sado River. The river flows through the east of the area and, along with the Atlantic Ocean, exerts a great influence through cool and very humid air currents. The Mediterranean climate is characterised by hot, dry summers and rainy winters. Only on the peninsula are the two DOC areas Palmela and Setúbal.
The vineyards cover a total of 20,000 hectares of vines. The white wines must contain at least 50% of the varieties Arinto, Chardonnay, Fernão Pires, Malvasia Fina, Moscatel de Setúbal (Muscat d'Alexandrie) and Roupeiro (Síria) in any blend. For the remaining 50%, Antão Vaz, Esgana Cão (Sercial), Rabo de Ovelha, Sauvignon Blanc, Ugni Blanc (Trebbiano Toscano) and Trincadeira das Pratas are permitted.
The red wines must contain at least 50% of the varieties Aragonez (Tempranillo), Cabernet Sauvignon, Merlot, Moscatel Roxo (reddish variety Muscat Blanc), Periquita (Castelão Francês), Tinta Amarela (Trincadeira Preta) and Touriga Nacional in any blend. For the remaining 50%, Alfrocheiro, Alicante Henri Bouschet, Bastardo, Carignan Noir (Mazuelo), Grand Noir, Monvedro, Moreto and Tinta Miúda (Graciano) are allowed.
The wines are vinified dry, semi-sweet and also noble sweet. Well-known producers are Adega de Pegões, Caves Alianca, Fonseca, J. P. Vinhos (Fonseca), Quinta da Bacalhôa (Fonseca) and Quinta de Camarate (Fonseca).
