The Wine Institute

SAN FRANCISCO — U.S. wine exports, 95 percent from California, reached a record high $951 million in 2007, an 8.6 percent jump from the previous year. Volume shipments in 2007 increased 12 percent to 453 million liters, compared to 2006.

"The long-term sales trend continues to be positive. Over the last decade, U.S. and California wine exports increased 77 percent in value and were shipped to 125 countries," said Joseph Rollo, Director of the Wine Institute International Department.

"Despite competition from foreign producers, and protectionist tariffs, distribution restrictions and production subsidies that have maintained an unlevel playing field, California wines have continued to expand into new and existing markets," said Robert P. (Bobby) Koch, President and CEO of Wine Institute. "The signing of the U.S.-EC Wine Trade Agreement in 2006 has created a more stable trading environment for California vintners who are making continued investments to export wine."

About half of U.S. wine exports are shipped to the European Union, accounting for $474 million, followed by Canada, $234 million; Japan, $63 million; Switzerland, $26 million; and Mexico, $24 million.

Wine Institute's Trade Director for the United Kingdom, John McLaren, is optimistic about the future growth of California wine sales in his market. "The United Kingdom is refreshingly enlightened and open-minded about California wines, and while it can be a tough market to break into, it is very welcoming to wines of genuine character and value. The rich diversity and creativity of California wines, particularly in the growing mid-price sector, has found an enthusiastic audience here."

Bulk wine sales to Europe have grown faster than bottled sales, due to the growing trend of producers shipping bulk wine abroad for bottling. This trend allows brand owners to efficiently make price points in a very competitive wine market. Total bulk table wine exports jumped 22 percent by volume to 169 million liters and grew 25 percent by value to $151 million. Total branded bottled table wine exports rose 9.5 percent to 207 million liters and were up 3 percent in value to $635 million.

Volume shipments to the European Union grew a healthy 7 percent in 2007 compared to 2006, but sales by value for these same shipments were slightly lower because of the growing shift to lower cost bulk wine shipments to these markets. "A wider availability of competitively priced California wines that appeal to the European palate is key in improving California's market share by value," said European Trade Director Paul Molleman.

Exports have rebounded by 23 percent in Canada to $234 million. Canada Trade Director Rick Slomka stated, "The combination of more favorable exchange rates, exciting new product introductions and higher marketing expenditures has resulted in strong growth and momentum for the California wine category in Canada. Trade and consumers are re-discovering California wines aided by more retail promotions and media coverage."

Other major growth markets include: South Korea, up 60 percent to $18 million; China, up 74 percent to $16 million; and Singapore, up 50 percent to $9 million.

"It is very encouraging to see China setting a solid, consistent growth pattern year after year. Despite the known challenges of the Chinese market, the ongoing opportunity this market represents now must not be overlooked. Indeed, the strong growth of the emerging and newly-developed markets throughout greater Asia makes this one of the most attractive regional wine markets worldwide," said Eric Pope, Regional Director, Emerging Markets.

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. Currently, 125 California wineries participate in the Wine Institute's International Program.

U.S. Wine Exports in Millions of Dollars: This bar graph shows U.S. wine exports based on the year from 1998 to 2007

Downloads	Size
U.S Wine Exports Year Based on Country (2006-2007)	58.1 KB