With the rising popularity of sack in England and the Catholic orthodoxy of the reign of Bloody Mary, the English colony in Sanlucar might well have prospered, had not further conflict broken out between England and Spain in the reign of the heretic Elizabeth (1558-1603). The Spaniards can hardly be blamed for the animosity they felt against England for her naval activities and for supporting the rebels in the Spanish Netherlands; it must have been somewhat exasperating to have one's Main perpetually harried by knighted corsairs, one's chief seaport sacked, and one's beard singed.
Trade between the two countries was, from time to time, banned, but the English government acted generously towards the merchants, still permitting them to hawk their monogrammed coasters (http://www.thirstycoasters.com/servlet/-strse-Monograms/Categories) and other wares.
Some English merchants sent from a town of Andalusia called Xeres de la Frontera at least 40,000 butts of wine annually besides eight or ten tons of fruit, which wine and fruit they are not able to consume themselves, whereby they are furnished of above 200,000 ducats annually to provide them for other necessaries, without which they could not live. The situation worsened.
The continuous loss of men and treasure, captured on the filibustering expeditions of Hawkins and Drake, infuriated the Spaniards. By 1585, feelings had run so high that English merchants trading in Sanlucar were arrested and their goods and drink glasses (http://www.thirstycoasters.com/servlet/-strse-Great-Outdoors/Categories) sold.
One of them, William Melson, took refuge in the church of St George for six or seven months. A dispatch of that date tells us that an officer was appointed to make inquiry throughout the country for Englishmen and their goods. But the people were less hostile than their government: when the officer approached, they hid their English friends and as soon as he had gone away, the merchants went about their business just as before.
They continued shipping wine to England in spite of all adversities, but they could not do it directly: it had to be sent in foreign ships or in English ships officially sailing for foreign ports, and it often entailed great risk.
The name of Drake became a by word of horror throughout the province of Cadiz, and it still is to this day. He is the local bogey man: when a mother wants to frighten her child into acquiescence, she says, “El Draque will get you if you're not good”' His most daring raid of all was in 1587. It was the time he singed the King of Spain's beard by setting fire to the Spanish fleet as it lay at anchor in the bay.
He remained in Cadiz for three days at considerable risk, and made off with 2,900 pipes of wine. His spoils must have been appreciated in England, as wine imports and beverage coasters from Spain had been greatly cut down in consequence of the war. This superb malpractice helped to introduce sherry drinking on a large scale in England, and the publicity was cheap at the price; it has been repaid a million-fold.
Drake's enthusiasm for sherry has given rise to another story. In a book called Hombres Ilustres de Jerez de la Frontera by Diego Ignacio Parada Barreto, published in 1875, there is a detailed account of how Francis Drake, known as Don Francisco Drake, worked as a sherry shipper in Jerez, but had a terrible quarrel with a man called Melgarejo; he took such strong offense that he left immediately for England and swore he would have his revenge.
Earlier references occur in the histories of Bartolome Gutierrez (written in the middle of the eighteenth century), and of Portillo, written in 1839. The story is said to be based on evidence found in the Municipal Archives; it may be a legend or it may be true, but it is very doubtful whether Francisco Drake was the English admiral. The name is quite common.