Aragon, believed to be the probable origin of the grape, concentrates the largest surface of Grenache (or Garnacha as it is called locally) in Spain, with 40,034 acres (16,201 ha) planted. Garnacha is the dominant variety in the region and is typically used to produce single variety wines.ntil the mid 20th century, Grenache was Australia's most widely planted red wine grape variety with significant plantings in the vast Riverland region where it was vital component in the fortified port-style wines of the early Australian industry.