This is marketing research on Wine Exports and can include information on the background and usage and preferences of wine exports and is related to other topics such as beverages, beer and alcohol.

U.S. Wine Exports, 95 Percent from California, Reach $951 Million in 2007

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,

U.S. Wine Exports

Destination       Value of Exports from U.S
                      (in US $ Million)

European Union             $474 
Canada                     $234
Japan                      $ 63
Switzerland                $ 26
Mexico                     $ 24

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 U.S. Export Growth Markets

Market               % Increase                Value of Wine Shipments to Country
                                                        (in US $ Million)

China                     74                                 $16
South Korea               60                                 $18
Singapore                 50                                 $ 9

"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 1996-2006

Year        Volume(In millions)                Value(In millions of dollars)
               Gallons    Liters                   Revenue to Wineries

2007             119.7     453.2                          $951
2006             106.9     404.5                          $876
2005             102.5     388.2                          $674
2004             121.9     461.3                          $809
2003              92.3     349.2                          $621
2002              74.5     282.1                          $549
2001              80.3     303.9                          $541
2000              77.7     294.2                          $547
1999              76.8     290.6                          $560
1998              71.9     272.0                          $537
1997              60.0     227.3                          $425
1996              47.5     179.7                          $326

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

Source: The Wine Institute