U.S. wine export revenue up 28% in 2004

Food & Drink Weekly, March 14, 2005

U.S. wine exports, 95 percent from California, surged to $794 million in winery revenues in 2004, a 28 percent jump over the previous year, according to preliminary figures released by the U.S. Department of Commerce. Exports exceeded the previous year by $173 million--by far the largest yearly increase ever. By volume, exports increased 29 percent to 119 million gallons (450 million liters.) "More than 60 percent of California wine exports are to the EU, despite the fact that our vintners face significant trade barriers, including high tariffs and a heavily subsidized EU wine industry," says Wine Institute President and CEO Robert P. Koch. "We are hopeful that the ongoing bilateral wine trade negotiations with the EU and the next round of World Trade Organization negotiations will lower these barriers."

"The weaker dollar has allowed California wineries to better compete at key price points in the world export market," says Wine Institute International Director Joseph A. Rollo. "The wineries are now reaping the benefits of their hard work and marketing efforts of the last few years and establishing brands in major markets."

The top market for California wine is the United Kingdom, which experienced a strong 41 percent increase in revenues to $299.1 million and a volume jump of 20 percent to 38 million gallons. The other leading markets are: Canada, $123.8 million; Netherlands, $85.6 million; Japan, $82.1 million; Germany, $26.8 million; Mexico, $14.5 million; Switzerland, $14.0 million; Denmark, $14.0 million; Ireland, $13.9 million; Belgium/Luxembourg, $13.4 million.