U.S. Wine Exports, 95 Percent from California, Jump 30 Percent to $876 Million in 2006SAN FRANCISCO March 14, 2007 — U.S. wine exports, 95 percent from California, totaled $876 million and 404.5 million liters in 2006, an increase of 30 percent in value and 4.0 percent in volume compared to 2005. In Europe, where the U.S. ships more than half of its sales abroad, exports surged 48 percent by value. Wine exports to Canada grew 29 percent by value. "The dramatic sales growth in 2006 must be placed in perspective as it follows a de-crease in 2005 compared to the 2004 shipments," stated Joseph Rollo, Director of the Wine Institute International Department. "Nonetheless, the long-term trend of California wine exports shows steady expansion in all major markets and growth in new, undeveloped markets. The 2006 number represents a 106 percent increase in exports by value in the last decade." "The growth is impressive considering the trade barriers that California wineries face in markets worldwide, such as protectionist tariffs, distribution restrictions and competition from foreign producers who receive production subsidies from their governments. The recently signed U.S./EU wine agreement gives California wineries assurance that the EU market will remain open to California wines and that trade requirements will be consistent, providing producers in both markets a stable environment for trade," said Robert P. (Bobby) Koch, Wine Institute President and CEO. According to United Kingdom retail statistics, U.S. wines grew by value 8.0 percent off-premise and 18 percent by value in on-premise accounts. The growth in volume at off-premise was greater than any other major country origin and amounts to a market share of 16.0 percent, compared to France at 16.4 percent. Australia leads at 22.3 percent in market share volume, but grew only 4.2 percent in 2006. "California wineries are producing wines that suit the international palate and are leaders in the rosé category, a growing segment in Europe that has become a year-round drink," stated John McLaren, Wine Institute UK Director. California exports to Europe have grown steadily as wineries have adjusted to the challenge of an increasingly price-sensitive consumer. Many California wineries now ship finished wines to Europe for bottling and distribution in other EU member states in order to reduce the freight costs of shipping bottles. Thus, an explanation of sales trends in specific countries becomes difficult, if not impossible to ascertain. However, there is no question that the overall sales within the Common Market of Europe are expanding for California wines. Exports to Canada are once again in a growth mode. Hurt by the strong dollar several years ago and the emphasis on other new world wines, California was challenged to maintain its market share. Steady growth in 2005, plus an increase of 29 percent by value in 2006, demonstrates that the California segment is strong. "The liquor boards across Canada are again looking to California for exciting new brands and adding premium wines to their specialty portfolio," stated Rick Slomka, Wine Institute Canada Director. "The growth in Quebec, a difficult market for us for years, has been significant the past two years, following an increased promotional campaign and successful market entries by many California brands," he added. Other major growth markets outside of Europe and Canada include: China, up 53 per-cent by value; Singapore, up 68 percent by value; and Hong Kong, up 19 percent by value. "China's increased growth rate is significant because of the market's huge potentialÑthe country's economic growth and the number of consumers who can afford imported wine continue to grow. Our trade missions have brought new brands to the market, and our participation in trade shows and retail promotions have been successful in increasing the sales of brands active in China," said Eric Pope, Wine Institute Manager of International Winery Programs. "In addition, Hong Kong has again become a growth market and should continue to increase now that the import tariff of 80 percent has been cut in half," he added. Since 1985, the Wine Institute has served as the administrator of the Market Access Program, an export promotion program managed by the USDA's Foreign Agricultural Service. This program provides funding for generic industry activities for California wines as well as a matching-funds program for small wineries. Currently, 125 California wineries participate in the program and export to 165 countries.
U.S. Wine Exports 1996-2006
(In millions of dollars)
|Gallons||Liters||Revenue to Wineries|
Source: Wine Institute using data from U.S. Dept. of Commerce, USA Trade Online.
Gallons/liters do not convert exactly due to rounding. History revised
|US Wine Exports by Country||47.94 KB|