This section is from the book "Beverages And Their Adulteration Origin, Composition, Manufacture, Natural, Artificial, Fermented, Distilled, Alkaloidal And Fruit Juices", by Harvey W. Wiley. Also available from Amazon: Beverages And Their Adulteration.
Several distinct varieties of wines are found included in the fino type. Manzanillo is a sherry belonging to the fino class. This name is given to the wine grown in the neighborhood of San Lucar de Barrameda, a town which is situated about 18 miles northwest from Jerez. This wine is somewhat light in alcoholic content, but it possesses very characteristic flavors which designate it as a sherry wine of high degree. Manzanillo is not quite clear. Its literal meaning is chamomile. Another meaning is a small apple, but neither of these meanings seems to have any bearing on its application to the wine. There is a small town about 40 miles from San Lucar, called Manzanillo, and this probably may have had something to do with the selection of the term.
 
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