"With Chile much in the news (albeit for reasons unrelated to wine), I went looking for the cause for this particular sentiment. I found that the fault, in many ways, lies with Chilean winemakers themselves—at least with the producers of three decades ago. The wines exported then were fairly unremarkable but priced to compete with some of the cheapest wines in the U.S. While this strategy helped to secure Chilean wines a spot on the market, it tarnished their reputation among wine drinkers, who continued to associate all subsequent (though often superior) efforts with that first wave."
Source :: Big Think