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The cooperative winery is located in the municipality of Villafranca de los Barros (Badajoz province) in the DO Ribera del Guadiana in the Tierra de Barros sub-area of the Spanish region of Extremadura. It was founded in 1960. Until 1980, however, it was mainly olive groves and oil pressing. With the establishment of modern cellar technology, the focus was then on the production of wine. Mainly the red wine varieties Tempranillo, Cabernet Sauvignon, Merlot and Syrah, as well as the white wine variety Chardonnay are cultivated. The DO wines are produced under the denomination "Valdequmao". Under the name "Varales", table wines and country wines are bottled in Bag-In-Box containers with 1, 5 and 10 litre volumes.

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