Wine Institute: California's 2010 exports set record

[Robin Garr]

California's wine exports are rebounding as the industry seemingly bounces back from the recession, California's Wine Institute announced in a report on the state's 2010 wine exports released today. Here's the intro, with a link to the full report:

California Boosts 2010 U.S. Wine Exports to Record Year
Wine Institute
Feb 22, 2011

SAN FRANCISCO – U.S. wine exports, 90 percent from California, rebounded to a new record of $1.14 billion in winery revenues in 2010, an increase of 25.6 percent over 2009 wine exports. Volume shipments rose 1.9 percent to 425.5 million liters or 47.3 million nine-liter cases.

"This positive news indicates that our goal of $2 billion in wine export revenues by 2020 is achievable," said Robert P. (Bobby) Koch, Wine Institute President and CEO. "California is the fourth largest wine producer in the world. Our continued work advocating for a level playing field in trade matters and the creative, long-term marketing investments by our wineries will enable us to reach our goal."

"Consumers worldwide are attracted to the state’s renowned cuisine, natural beauty and relaxed lifestyle, and these features go hand in hand with California wine," said Linsey Gallagher, Wine Institute's International Marketing Director. "We recently launched our global Discover California Wines branding campaign with print and multi-media materials that emphasize the California lifestyle."

"With close to 20 percent of California’s wine production being sold in other countries, exports represent an important part of our industry’s success. To help drive further growth, we continue to work closely with the U.S. government and the international wine community to remove trade barriers and open new markets," said Wine Institute’s International Trade Policy Director Tom LaFaille.

Thirty-eight percent of U.S. wine exports by value were shipped to the 27-member countries of the European Union, accounting for $435 million of the revenues, up 14 percent from 2009. Volume shipments to the EU reached 27.6 million cases in 2010, up 11 percent from the previous year. Changes in the dollar exchange rate, a gradually recovering economy and California’s effective marketing and high wine quality have helped exports rebound. Other top markets were: Canada, $308 million; Hong Kong, $116 million; Japan, $76 million; and China, $45 million.

Full news release, with graphs and charts, here:
http://www.wineinstitute.org/resources/ ... m/02222011

[Robin Garr]

Lewis Perdue, editor of Wine Industry Insight and a long-time industry observer, appears skeptical about the optimism of Wine Institute's report:

Context Needed: U.S. Wine Exports Recover From Recession, Value Up 13% Over 2008

The Wine Institute news release needs a bit more context than is provided.

First of all, despite the California headline, these data are overall United States numbers. No actual California shipment data is included.

The actual “record” increase is substantial, but not the giddy 25.6 percent touted.

If one must tout a “record” then one should state the previous record being shattered.

According to the Wine Institute (2009 U.S. Wine Exports Are Down But Positive Fourth Quarter Gives Cause For Optimism) the record year for value in U.S. wines was $1.008 billion in 2008. Thus 2010 represents a 13 percent increase over the previous record.

In volume, the record year was also 2008 when 490.9 million liters were shipped. In fact, this decrease is actually good news because it means that the average price per liter of wine exported has increased.

Full report online:
http://wineindustryinsight.com/?p=22071

[David M. Bueker]

Only a 13 percent increase? The grape pickers union had better get ready for some serious givebacks. We can't afford these types of results!

U.S. wine exports, 90 percent from California, rebounded to a new record of $1.14 billion in winery revenues in 2010, an increase of 25.6 percent over 2009 wine exports. Volume shipments rose 1.9 percent to 425.5 million liters or 47.3 million nine-liter cases.

Thats a pretty big growth rate for the average price! Shipments rise by 2% but revenue rises by almost 26%. Of course part of this is the weak 2009 which makes the year to year compare "easier".