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California Wines Fuel $1.49 Billion in U.S. Wine Exports in 2014


SAN FRANCISCO — U.S. wine exports, 90% from California, reached $1.49 billion in winery revenues in 2014, the second highest dollar value for U.S. wine exports and a 64% increase from five years ago. Challenged by a strong dollar and the West Coast port slowdown that began last July, U.S. wine exports were slightly down compared to the previous year while volume was up to 442.7 million liters or 49.2 million cases.

"With three back-to-back California vintages (2012, 2013 and 2014) heralded for their high quality and size, we have the ability to meet consumer demand for our wines both in the U.S. and abroad," said Wine Institute President and CEO Robert P. (Bobby) Koch. "Despite our strong dollar and heavily subsidized foreign competition and their high tariffs, consumers worldwide are attracted to all things California—our iconic lifestyle, scenic landscapes, great wine and food, and emphasis on environmental stewardship."

Of the top 10 export markets for California wines, the European Union's 28-member countries were the largest accounting for $518 million; followed by Canada, $487 million; Japan, $88 million; China, $71 million; Hong Kong, $69 million; Mexico, $24 million; South Korea, $22.2 million; Nigeria, $21.9 million; Vietnam, $20 million; and Singapore, $16 million.

"Wine Institute's global branding campaigns for California wine help develop markets in more than 25 countries with 15 representative offices around the world to provide market information and promotional assistance," said Wine Institute Vice President International Marketing Linsey Gallagher. "We introduced several new tools this year including the translation of our consumer website into eight languages, social media campaigns now live in 16 countries (Facebook, Twitter and Weibo and WeChat in China), an educational California Wines PowerPoint tool, and a strong partnership with Visit California to increase tourism to California wine regions. We organize California's participation in international trade shows and trade missions to key export markets, host retail and on-premise tastings for trade, media and consumers worldwide and have an active schedule of California wine country visits by international media and wine buyers."

"Wine Institute continues to work closely with Members of Congress and the Administration to remove trade barriers and provide a level playing field for our vintners around the world. First and foremost, Congress needs to approve Trade Promotion Authority ("fast track") legislation so that the tariffs U.S. wines face in key Asia-Pacific and European markets can be eliminated in the Trans-Pacific Partnership and Transatlantic Trade & Investment Partnership free trade negotiations," said Tom LaFaille, Wine Institute Vice President and International Trade Counsel.

Five of Wine Institute's 15 Regional Trade Directors reported on key markets as follows:

"California wine sales experienced strong growth in all the major markets across Canada during 2014. Retail sales of U.S. wines now exceed a record six million cases and $1 billion dollars with the strongest increases in the provinces of Quebec and Alberta," according to Rick Slomka, Wine Institute Trade Director for Canada. "Canadian consumers have confidence in the quality and value offered by California and our wines are successful in all price segments. In-store promotions in the major markets have created a solid base and strong momentum for California wines, which will be needed to offset the challenges of a stronger U.S. dollar."

Continental Europe
"Exports to continental Europe were down slightly, mainly as a result of a weakening of the Euro in the fourth quarter. The 2015 year will also be challenging, with the markets adapting to the exchange rate of the stronger U.S. dollar," said Paul Molleman, Wine Institute Trade Director for Continental Europe. "The 28-member European Union countries accounted for 35% share of total U.S. wine exports in 2014."

United Kingdom
"The UK economy is now more robust than at any time in the last 10 years, but a series of above-inflation duty increases has taken its toll on the sales of wines at popular prices. However, consumer wine drinking behavior is changing to a less-but-better approach, and premium wines priced at $15 and over have increased by 30%. Premium California wine is well set for further growth here," said Wine Institute United Kingdom Trade Director John McLaren.

"While California wine sales in Japan are brisk, supply from California has been a major challenge due to slow shipments from the state's West Coast ports. Japanese import statistics confirm that U.S. wine exports to Japan in 2014 were bigger than a year ago for the period up to November but became negative in December. Resolution of the port issue should bring supply back in line with growing demand," said Ken-ichi Hori, Japan Trade Director for Wine Institute.

"Once the Trans-Pacific Partnership free trade agreement is finalized, the import duty on U.S. wines will likely be minimized and help the entire California category increase in Japan. This is critical for the California wine industry, since our competitors from Chile and Australia have already established Free Trade Agreements with Japan, and thus have a duty advantage over California wines."

China and Emerging Markets
"Asia's emerging wine markets remained buoyant in 2014 despite the negative impact of China's ongoing austerity campaign, resulting in declines in the value of California wine exports to China and Hong Kong. However the long-term outlook for these key markets remains very promising and all of our other active Asian emerging markets saw value gains in 2014, led by Vietnam, up 55%, Singapore, up 33% and Taiwan, up 31%," said Eric Pope, Wine Institute's Regional Director, Emerging Markets. "Our markets in the Americas also showed resurgent growth, led by Brazil, up 44% and Mexico, up 14%. The value of California wine exports to Colombia, our newest Export Program market, grew 6%. Since 2011, the value of wine exports to this market has doubled."

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. More than 170 wineries participate in Wine Institute's California Wine Export Program and export to 125 countries.

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Year to Date: January-December
2014 and 2013

Value (U.S. Dollars)Variance
'14 v '13
Volume (Liters)Variance
'14 v '13
Ranked by 2014 Value
2014 2013Percent20142013Percent
European Union Total**517,788,871 619,458,484 -16.41 225,895,137245,143,909-7.85
Japan*** 87,817,248101,252,853-13.2725,320,52829,342,799 -13.71
China71,330,60377,261,785-7.6817,139,91617,862,501 - 4.05
Hong Kong68,980,41177,292,086-10.75 10,864,84311,668,677- 6.89
Mexico23,938,11121,083,37913.549,771,9888,765,656 11.48
South Korea 22,222,394 18,307,226 21.39 5,260,586 4,416,422 19.11
Nigeria 21,862,942 8,034,039 172.13 7,444,241 2,275,245 227.18
Vietnam 19,663,524 12,720,225 54.58 2,046,025 1,721,688 18.84
Singapore 15,512,340 11,664,856 32.98 3,734,496 2,331,559 60.17
Switzerland 14,088,399 15,073,350 -6.53 2,565,119 3,973,056 - 35.44
Taiwan 12,390,043 9,476,140 30.75 2,125,120 1,744,853 21.79
Dominican Republic 10,091,250 9,044,647 11.57 2,693,257 2,181,448 23.46
Russia 9,868,507 11,602,316 - 14.94 2,892,770 2,031,257 42.41
Philippines 8,623,966 9,100,655 - 5.24 3,235,127 3,226,368 0.27
United Arab Emirates 7,228,898 6,080,727 18.88 1,845,449 1,402,754 31.56
Bahamas 6,667,983 6,730,184 - 0.92 1,566,939 1,331,721 17.66
Brazil 6,125,959 4,264,828 43.64 1,703,758 1,398,720 21.81
Thailand 6,077,260 6,284,917 - 3.30 1,147,134 1,216,731 - 5.72
Cayman Islands 4,626,070 3,709,657 24.70 549,012 496,821 10.50
OTHER COUNTRIES 72,645,30572,291,5380.49 20,618,273 20,439,466 0.87
WORLD TOTAL 1,494,475,3341,554,397,211- 3.85 442,662,759 435,744,292 1.59

Source: Wine Institute & Global Trade Information Services, using data from U.S. Dept. of Commerce. Preliminary numbers. *2012 and 2013 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.

***Japan import reports show higher wine imports from the U.S. than the U.S. report on wine exports to Japan. The statistical exclusion of re-exported wine from U.S. wineries in the U.S. report could explain this.

To convert liters to gallons, multiply liters by .26418
To convert liters to cases, divide liters by 9


U.S. WINE EXPORTS 1994-2014
(In millions)
(In millions of dollars)
GallonsLitersCasesRevenues to Wineries
2014* 116.9 442.7 49.2 $1,494
2013* 115.0 435.2 48.4 $1,555
2012* 106.9 404.8 45.0 $1,336
2011* 111.3 421.2 46.8 $1,295
2010* 107.6 407.3 45.3 $1,064
2009 110.3 417.7 46.4 $912
2008 129.7 490.9 54.5 $1,008
2007 120.2 455.0 50.6 $955
2006 106.9 404.5 44.9 $876
2005 102.6 388.2 43.1 $674
2004 121.9 461.3 51.3 $809
2003 92.3 349.2 38.8 $621
2002 74.5 282.1 31.3 $549
2001 80.3 303.9 33.8 $541
2000 77.7 294.2 32.7 $547
1999 76.8 290.6 32.3 $560
1998 71.9 272.0 30.2 $537
1997 60.0 227.1 25.2 $425
1996 47.5 179.7 20.0 $326
1995 38.8 147.0 16.3 $241
1994 35.2 133.4 14.8 $196

Source: Wine Institute & Global Trade Information Services, using data from U.S. Dept. of Commerce. *2010-2014 statistics exclude re-exported wines due to U.S. DOC changing its reporting to exclude re-exported wine. 2009 and earlier include re-exported wines.

US Wine Exports Bar Chart through 2014

Source: Wine Institute & Global Trade Information Services, using data from U.S. Dept. of Commerce. 2010-2013 excludes re-exported wine.

California Wines Fuel $1.49 Billion in U.S. Wine Exports in 2014

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