Wine Exports Up Significantly Reports a New Study -- May 6, 2004 -- California Capitol Hill Bulletin -- Volume 11, Bulletin 15

The U.S. wine industry saw a 17 percent increase in export value during 2003 up to $643 million, according to a new report released by the Wine Institute on April 26, 2004. In addition, wine exports increased 29 percent in volume, up to 96 million gallons over the same period. Over 90 percent of U.S. wine is produced in California. The study was based on data from the U.S. Department of Commerce and USA Trade Online. The study credits new product introductions and favorable dollar exchange rates with helping to expand California wine exports abroad.

According to the San Francisco-based Wine Institute, the United Kingdom is the top market for U.S. wine. Revenues rose 13 percent to $212.9 million and volume increased 25 percent to 31 million gallons. The other leading markets include: Canada, $112.4 million; Japan, $76.3 million; The Netherlands, $74.8 million; Federal Republic of Germany, $19.5 million; France, $14.5 million; Switzerland, $14.4 million; Belgium, $14.0 million; Ireland, $13.0 million; and Denmark, $10.4 million.

The report also found that packaged California brands accounted for most of the sales, which, along with other bottled U.S. table wine exports totaled $519 million, up 17 percent, for an 81 percent share of the sales. Bulk wine exports totaled $44 million; U.S. champagne and sparkling wine was $20 million; dessert wine, $32 million; and grape must and other fermented beverage exports, $28 million. In the last decade, wine export revenues have increased 228 percent, from $196 million in 1994 to $643 in 2003. The volume shipped grew from 35 million gallons to 96 million gallons during the same period.

For additional information, visit the Wine Institute at http://www.wineinstitute.org .

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