Surely the word 'encanto' means 'I love' and the word 'Encantan' means 'They Love'.
Not at all. Actually, the Spanish structure is completely different from the English one. In English, you say "I love something", whereas in Spanish, you say "Something charms me". Therefore, encanto = (I) charm and encantan = (they) charm. Let me explain this sentence step by step:
Me encantan los vinos españoles =(literally) To me charm Spanish wines = Spanish wines charm me ≃ I love Spanish wines
N.B. There is a verb to love = amar, but it sounds really weird to use it with object. It's really meant for people, and if you do use it with objects, it sounds like "I'm in love with something"