NEWS

Showing 1 - 30 of 83 articles
Page
1   2   3  »
California Wine Exports Set Record in 2015: Worldwide Demand Grows, Despite Strong Dollar
February 29, 2016

SAN FRANCISCO — U.S. wine exports, 90% from California, reached $1.61 billion in winery revenues in 2015, an all-time record and a 7.6% increase from 2014. Volume was up 4.1% from the previous year to 461 million liters or 51.2 million cases.

“California wines appeal to consumers across the globe who recognize the unique quality and excellent value of our wines. Consumers are also attracted to California’s trend-setting lifestyle, innovative cuisine, beautiful wine country destinations and emphasis on environmental responsibility—all of which are reflected in our wines,” said Robert P. (Bobby) Koch, Wine Institute President and CEO.

Of the top 10 export markets for California wines, the European Union’s 28-member countries were the largest, accounting for $622 million, followed by Canada, $461 million; Hong Kong, $97 million; Japan, $96 million; China, $56 million; Nigeria, $29 million; Mexico, $26 million; South Korea, $23 million; Switzerland, $21 million; and Singapore, $15 million.

“More than 170 California wineries participate in Wine Institute’s California Wine Export Program and export to 138 countries supported by 15 representative offices around the world which develop markets in 25 countries,” said Wine Institute Vice President International Marketing Linsey Gallagher. California wine exports have increased 91% by value in the last decade and we’re seeing a “premiumization” trend with dollar sales outpacing volume growth. This growth is occurring despite heavily-subsidized foreign competitors, high tariffs and strong dollar.”

“Removing obstacles to trade and ensuring that California wines have fair and equal access to international sales channels remain our top focus,” said Tom LaFaille, Wine Institute Vice President and International Trade Counsel. “Unfortunately, more and more countries and provinces are “modernizing” their laws to benefit only local wine producers. Wine Institute works closely with the U.S. government to continue to lead initiatives against discriminatory trade barriers which violate international agreements.”

Wine Institute’s Export Program offers many tools to support California Wines category building efforts around the world, including a consumer website discovercaliforniawines.com in eight languages, social media campaigns in 16 countries, an educational California Wines PowerPoint tool, educational and entertaining video assets, and a strong partnership with Visit California to increase tourism to California wine regions. The program organizes California’s participation in international trade shows and trade missions, hosts master classes and seminars as well as tastings for trade, media and consumers worldwide. Last year’s active schedule of California wine country visits brought in 150 international media and wine buyers from 15 countries.

Wine Institute’s six Regional Trade Directors in key export markets reported on 2015 exports:

Canada

“California wine sales continued to be strong in Canada last year despite unfavorable exchange rates. In 2015, U.S. wine sales surpassed wines from France and Italy for the first time to claim the largest share of import table wines in the Canadian market,” said Rick Slomka, Canadian Trade Director for the Wine Institute. “California wines have built a solid consumer base and enjoy substantial momentum in this market. California wineries have invested significantly to develop their business in Canada and anticipate continued growth, although at a slower pace.”

Continental Europe

“Despite a strong U.S. dollar and fierce competition from Old and New World wine countries, nearly all export markets in Continental Europe showed an increase. It is especially encouraging to see that our educational and promotional efforts in Germany, our largest market on the continent, are paying off with an increase of 32% in revenues,” said Paul Molleman, Wine Institute Trade Director for Continental Europe. “The 28-member European Union countries accounted for nearly 40% share of total U.S. wine exports in 2015.”

United Kingdom

“The United Kingdom has always been a receptive market for California wines, and a quarter of all U.S. wine exports by volume come to this country. Value increases are now out-stripping volume growth, with U.S. wine export value to the UK rising by 28% last year. The wine trade here has shifted emphasis to restaurants and casual dining, and a burgeoning independent retail sector, leading to increased interest in premium wines from the Golden State. California is better placed here than it has ever been before, and we expect further growth in 2016 and beyond,” said Wine Institute United Kingdom Trade Director John McLaren.

Japan

“California wine has been selling well in Japan but supply was a major challenge in the first quarter of 2015 due to the slowdown at the ports along the U.S. west coast. Japan’s California wine imports in January 2015 were down 40.5% by volume from the previous year, and the situation prevented Japanese importers from promoting our wines. After April 2015, the port issue was resolved and supply was back in line with growing demand,” said Ken-ichi Hori, Wine Institute Japan Trade Director.

“Once the Trans-Pacific Partnership free trade agreement goes into force, the import duty on U.S. wines will be completely abolished in eight years which will help the entire California category grow in Japan. This is critical for the California wine industry, since our competitors, Chile and Australia, already have free trade agreements with Japan, and benefit from a duty advantage over California wines.”

China

“With no reliable country-wide sales data, the 2015 numbers based on import/export data for China don’t tell the whole story on California wine performance, and, in fact, are misleading. Looking at consumption of California wines in the premium and super premium categories, the price range for most California wines, sales were up last year. The export decline was due to a drop in less expensive wines being imported following excessive importation in 2013-2014. Sales of higher-priced wines are quite healthy, while even lower-priced wines are selling through as depletions continue. The export data to Hong Kong shows a healthy 41% increase by value in exports, and we know that a portion of volume shipped to Hong Kong is destined for China. The market for California wines in China remains healthy and more consumer driven than in years past when gifting and group purchasing were significant drivers of sales,” said Christopher Beros, Wine Institute Trade Director for China.

Emerging Markets

“The strong dollar and difficult trading conditions affected California wine’s performance in emerging markets. However, the region produced clear success stories in 2015, such as Hong Kong, Mexico and South Korea where export value grew 41%, 7% and 5% respectively,” said Eric Pope, Wine Institute Regional Director for Emerging Markets.

Since 1985, Wine Institute has served as the administrator of the Market Access Program, a cost-share export promotion program managed by the USDA’s Foreign Agricultural Service. For more information, see: Wine Institute’s California Wine Export Program

# # #

U.S. WINE EXPORTS
Year to Date: January-December
2015 and 2014

 

Value (U.S. Dollars)

Variance
’15 v ‘14

Volume (Liters)

Variance
’15 v ‘14

PARTNER COUNTRY
Ranked by 2015 Value

2015

2014

Percent

2015

2014

Percent

European Union Total**

621,904,744

517,622,655

20.15%

238,587,949

225,918,167

5.61%

Canada

461,192,662

487,047,858

-5.31%

99,757,425

94,260,404

5.83%

Hong Kong

97,301,392

69,067,833

40.88%

12,538,952

10,872,176

15.33%

Japan

  96,343,245

87,789,176

9.74%

29,460,014

25,317,763

16.36%

China

55,556,831

71,330,769

-22.11%

13,384,686

17,126,232

-21.85%

Nigeria

28,503,088

21,786,035

30.83%

5,985,186

7,431,449

-19.46%

Mexico

25,973,601

24,332,594

6.74%

9,377,037

9,973,358

-5.98%

South Korea

23,374,363

22,211,426

5.24%

4,380,885

5,262,653

-16.76%

Switzerland

21,155,711

14,088,399

50.16%

2,693,876

2,565,119

5.02%

Singapore

15,197,329

15,445,349

-1.61%

2,804,425

3,720,924

-24.63%

Vietnam

11,745,692

19,070,724

-38.41%

1,134,683

2,046,025

-44.54%

Philippines

11,722,946

8,623,966

35.93%

4,075,393

3,235,127

25.97%

Dominican Republic

11,084,805

10,091,418

9.84%

3,160,844

2,693,131

17.37%

Taiwan

10,472,125

12,344,476

-15.17%

1,861,286

2,115,103

-12.00%

Brazil

10,303,626

6,125,959

68.20%

5,477,352

1,703,758

221.49%

United Arab Emirates

9,290,287

7,228,898

28.52%

1,674,586

1,845,449

-9.26%

Bahamas

8,346,776

6,673,886

25.07%

1,712,806

1,538,201

11.35%

Norway

5,732,539

4,206,375

36.28%

2,991,410

2,456,841

21.76%

Thailand

5,481,811

6,075,973

-9.78%

1,182,239

1,147,134

3.06%

Cayman Islands

4,685,239

4,626,070

1.28%

500,622

549,039

-8.82%

OTHER COUNTRIES

71,457,570

78,267,876

-8.70%

18,272,940

20,915,135

-12.63%

WORLD TOTAL

1,606,826,382

1,494,057,715

7.55%

461,014,596

442,693,188

4.14%

Source: Wine Institute & Global Trade Information Services, using data from U.S. Dept. of Commerce.  Preliminary numbers. Includes hard cider. History revised.

*Statistics exclude re-exported wine due to U.S. DOC changing its reporting to exclude this wine.

**Stats for the 28 EU countries are combined because transshipments to final destinations in neighboring countries make a country-by-country breakdown not reflective of actual consumption in each country.

To convert liters to gallons, multiply liters by .26418

To convert liters to cases, divide liters by 9

 

U.S. WINE EXPORTS 1995-2015

Year

Volume
(In millions)

Value
(In millions of dollars)

Gallons

Liters

Cases

Revenues to Wineries

2015

121.8

461.0

51.2

$1,607

2014

117.0

442.7

49.2

$1,494

2013

115.1

435.8

48.4

$1,553

2012

106.9

404.8

45.0

$1,336

2011

111.4

421.6

46.8

$1,297

2010

107.6

407.3

45.3

$1,064

2009

106.4

402.8

44.8

$859

2008

125.5

474.9

52.8

$963

2007

115.9

438.8

48.8

$911

2006

105.1

397.9

44.2

$843

2005

101.5

384.1

42.7

$659

 2004

119.1

451.0

50.1

$796

 2003

92.3

349.2

38.8

$621

2002

73.4

277.8

30.9

$542

2001

78.8

298.3

33.1

$531

2000

77.8

294.4

32.7

$551

1999

74.2

281.0

31.2

$541

1998

71.1

269.1

29.9

$532

1997

58.7

222.1

24.7

$415

1996

46.5

175.9

19.5

$320

1995

37.9

143.5

15.9

$236

Source: Wine Institute & Global Trade Information Services, using data from U.S. Dept. of Commerce. History revised.

US Wine Exports in Millions of Dollars

Source:  Wine Institute & Global Trade Information Services, using U.S. Dept. of Commerce data. History revised.