The Wine Institute

Merlot is the leading red varietal wine purchased by Americans today. Experiencing double digit sales growth throughout much of the 90's and yearly gains into the new millennium, Merlot first became the top red varietal wine in U.S. supermarkets in 1999, according to ACNielsen, a firm that tracks laser-scanning sales in 3,000 supermarkets and large-volume retail outlets nationwide. Merlot sales were 7.8 million cases in 2005 in food stores, growing dramatically from the 1.6 million cases sold in 1995.

What is the reason for Merlot's popularity? Industry observers offer possible explanations. Consumers who are new to wine may be trying red wine because of news reports linking moderate drinking to a healthy lifestyle. Also, white and blush drinkers may be expanding their preferences to red. Merlot may be the choice in both instances because of the soft, approachable and luscious character that is appealing to new and regular red wine drinkers. In restaurants, Merlot's average price is similar to the average price of the widely popular Chardonnay varietal, according to a "Wine & Spirits" magazine poll of restaurants.

The Merlot Grape

Merlot is one of the principal winegrape varieties of the Bordeaux region in France, and was brought to California in the mid-19th century. Historically, vintners have used Merlot as a blending grape to soften a wine, usually with Cabernet Sauvignon. Merlot tannins are less forceful than Cabernet Sauvignon, so Merlot wine tends to mature earlier. Merlot is now primarily popular as a varietal wine. Most of the Merlot vines are planted in Lodi/San Joaquin County, followed by Napa, Sonoma and Monterey counties.

Market Share of Merlot in U.S. Supermarkets

(By Table Wine Volume)

2005	11.7 percent
2004	12.4 percent
2003	12.4 percent
2002	11.9 percent
2001	11.5 percent
2000	10.5 percent
1999	9.3 percent
1998	7.4 percent
1997	5.7 percent
1996	4.3 percent
1995	3.5 percent

Source: ACNielsen

California Merlot Consumption in the U.S.*

(Millions of nine-liter cases)

2004	20.2
2003	18.9
2002	17.3
2001	15.2
2000	14.9
1999	13.1
1998	10.6
1997	8.3
1996	5.8
1995	3.8
1994	2.8

Source: Impact Annual Wine Study
*California ships 71% of all Merlot volume to the U.S.

Top California Counties for Merlot Acreage, 2005

Counties	Acreage
San Joaquin	8,579
Napa	7,533
Sonoma	7,378
Monterey	6,034
Madera	3,827
San Luis Obispo	4,190
Sacramento	3,681
Merced	2,025
Mendocino	1,853
Fresno	1,452
Ventura	1,294
Kern	1,098
Santa Barbara	960
Stanislaus	684

Source: California Department of Food & Agriculture