U.S. wine exports
last year increased 8.6 percent, to $951 million,
according to data released Friday by the Wine Institute,
the California based industry association, with an
increase in the sale of lower priced and bulk wines.
Continuing the trend, California
exported 95% of the total exports which were strongest
in Canada and East Asian countries, where revenue
jumped more than 20%. Exports made up 21% of California's
total sale of bottled wine.
Exports of bottled wine reflected
a shift to lower prices. The number of cases exported
grew 9.5 percent in 2007, to 23 million. But the average
revenue per case dropped from $29.35 in 2006 to $27.61
last year.
The total volume shipments grew 12
percent, to 453 million liters, compared to 404.5
million liters in 2006, according to the report.
 The
value of U.S. wine exports has jumped from $537 million
in 1998 to $951 million in 2007; volume increased
from 71.9 million gallons to 119.7 million gallons
during the same time period.
Part of the reason for the strong
sales was the dollar's low exchange rate, which helped
California winemakers to price their products even
more aggressively last year, said Joseph Rollo, director
of the international department of the Wine Institute.
This has been especially true for exports to Canada.
Robert Koch, President of the Institute
cautions however, that protectionist tariffs, distribution
restrictions and production subsidies still create
an unlevel playing field in some markets, adding that
the 2006 signing of a Wine Trade Agreement between
the U.S. and the European Union has helped to create
a more stable trading environment for California wineries.
American wine exports account for only about 5 percent
of total global wine exports, he adds.
The Wine Institute represents more
than 1,000 California wineries; 125 of those wineries
participate in its international program.
About half of the U.S. wine exports
go to the EU countries, accounting for $474 million
of last year's total, the institute said. Canada received
$234 million in shipments, followed by Japan, with
$63 million, Switzerland, with $26 million, and Mexico,
with $24 million.
California wineries are under pressure
to continue building foreign sales because overseas
labels continue to gain market share in the US market.
Total U.S. sales volume grew steadily last year by
12.2 million cases (4 %) last year. Nearly two-thirds
of the growth was in the imported brands.
One of the markets where the institute
feels there is no level field is India which it finds
a lucrative market. In fact, the institute was the
force behind the US filing complaint against India
in the WTO which US lost recently. Partly, due to
the US pressure, the customs duties on wines in India
were reduced last July from 264% to about 160% ( the
refundable special additional duties of 4% on the
reduced Duty of 150% are seldom refunded, according
to importers;) which also includes an educational
cess of 3% on al imports.
The institute has also authorized
a study on the current market scenario in India, which
will also recommend ways on how to increase the collaborative
efforts between the two countries. In fact, a team
is currently on a visit to Delhi, Mumbai, Goa and
Bangalore, meeting various wine stakeholders.
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