Source: Wine Institute using data from U.S. Dept. of Commerce, USA Trade Online. Gallons/liters do not convert
exactly due to rounding.
San Francisco, Calif.--U.S. wine exports--95% from California--reached a record high of $951 million in 2007, an 8.6% jump from the previous year. Volume shipments in 2007 increased 12% to 453 million liters, compared to 2006. The increases reflect a long-term sales trend in which U.S. exports have grown by 77% in value over the last decade, according San Francisco-based Wine Institute (WI), which issued the report. Approximately 50% of U.S. wine exports are shipped to the European Union (EU), accounting for $474 million, followed by Canada, $234 million; Japan, $63 million; Switzerland, $26 million; and Mexico, $24 million. "Despite competition from foreign producers, and protectionist tariffs, distribution restrictions and production subsidies that have maintained an un-level playing field, California wines have continued to expand into new and existing markets," stated 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."Total bulk table wine exports jumped 22% by volume to 169 million liters, and grew 25% by value to $151 million. Total branded bottled table wine exports rose 9.5% to 207 million liters, and were up 3% in value to $635 million.

olume shipments to the EU increased by 7% in 2007 compared to 2006, but sales by value for these same shipments were flat to slightly down, due to the growing shift to lower cost bulk wine shipments to these markets. In 2005, dollar sales of U.S. wine exports to Europe reached $310.8 million, while in 2006, sales jumped to $453.6 million. That figure decreased slightly in 2007 to $442.9 million, according to Global Trade Atlas figures through Nov. 2007."A wider availability of competitively priced California wines that appeal to the European palate is key in improving California's market share by value," stated WI's European trade director Paul Molleman. UK, Canada and Asia show promise WI's U.K. trade director, John McLaren, expressed optimism about the future growth of California wine sales in his market. "While it can be a tough market to break into (the U.K.) is very welcoming to wines of genuine character and value," he stated. "The rich diversity and creativity of California wines, particularly in the growing mid-price sector, has found an enthusiastic audience here." Exports have rebounded by 23% in Canada to

$234 million. WI's Canadian 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% to $18 million; China, up 74% to $16 million; and Singapore, up 50% to $9 million. "It is very encouraging to see China setting a solid, consistent growth pattern year after year," said Eric Pope, WI's regional director for emerging markets. "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."