The rare style of sherry known for standing between Amontillado and Oloroso is Palo Cortado.
Palo Cortado combines the aromatic delicacy and nuttiness associated with Amontillado with the fuller, richer structure of Oloroso. It traditionally begins aging under flor, the layer of yeast that protects certain sherries from oxygen. If the flor disappears or is deliberately removed, the wine continues aging oxidatively, developing the depth associated with Oloroso.
The name means “cut stick.” In traditional bodegas, a cask first marked for Fino or Amontillado could be crossed with another mark when its development suggested Palo Cortado. The style is unusual: only a small proportion of sherry grapes naturally develop into it, although modern producers can guide the process more deliberately.
Palo Cortado is generally dry and fortified, not a sweet cream sherry. It is commonly served slightly chilled with olives, nuts, cheese, foie gras or richer meat dishes. The neighbouring styles are easier to distinguish by aging: Amontillado retains more of its flor-aged character, while Oloroso is oxidative from an earlier stage.