Californian wine sales in the US reached yet another record high of 185.4 million nine-litre cases in 2005 with a retail value of US$16.5bn, according to wine industry consultant Jon Fredrikson of Woodside, who publishes the Gomberg-Fredrikson Report.

The presence of Californian wine in India is a relatively recent phenomenon, thanks largely to the marketing efforts of the Delhi-based Brindco Limited, which opened with Corbett Canyon and Kendall-Jackson and then moved up the quality and value ladder from Cakebread Cellars to Joseph Phelps, Niebaum Coppola Wine Estates, St. Francis and Stag's Leap.

"Wine has enjoyed the most positive image it has had in years," said Robert P. Koch, President and CEO, Wine Institute. "The May 2005 US Supreme Court decision on direct-to-consumer sales not only benefited US wineries, but had a favorable impact on public opinion and awareness of wine." Shortly after the Supreme Court ruling, a Gallup poll, for the first time in its history, named wine as the most preferred alcohol beverage in America. The popularity of the hit movie Sideways continued to lift the public's interest in wine, particularly in Pinot Noir from California.

"Production increases around the globe have resulted in scores of creative, value-oriented wines. The availability of more approachable, easy drinking 'user-friendly' wines with memorable labels and affordable prices has made wine more interesting and attractive to greater numbers of American adults," Fredrikson said.

US wine consumption growth began a steady climb in 1991 after the CBS 60 Minutes French Paradox broadcast, which spurred hundreds of other news media to report on the favourable health effects of moderate wine consumption. 'Echo Boomers' , the adult children of the Baby Boomer generation that adopted wine in the 1960s and 1970s, are increasingly making wine more a part of their lifestyle. "Wine consumption is gaining among all generational segments, led by Baby Boomers, with more interest not only among women, but also among men and all ethnic groups and regions," commented Barbara Insel, Managing Director of Research at MKF Research in St. Helena. "Both retailers and restaurants are responding by expanding the quality and diversity of their offerings."

Sales in the US of wine from California, other states and foreign producers grew by 5% in 2005 to an estimated 703 million gallons valued at $26bn at retail. Californian wines represented a 63% share of the US wine market or about two of every three bottles sold in the US.

For the second year in recent history, red wine edged out white as the top seller by volume in food stores, holding a 41.7% market share. White wine accounted for an estimated 41% share, blush represented 17.4% share of the volume. Still benefiting from the Sideways effect, Pinot Noir shipments experienced a dramatic 70% jump in food stores, though from a small base of 2% share by volume. Chardonnay remained the top-selling varietal wine, followed by Merlot, White Zinfandel and Cabernet Sauvignon. Together, these four varietals totalled 53% of all table wine volume in food stores. Preliminary export numbers for 2005 show a decline of 17% in value and 16% in volume, following spectacular growth in 2004 of 28% and 29%respectively, according to the US Foreign Agricultural Service.

The primary reason for the decrease involves a change in European sales. To save costs, some wineries are shipping their brands as bulk wine instead of bottled product. The bulk wine is then bottled abroad for distribution throughout Europe. The dollar's two-year high against the Euro is also a contributing factor. U.S. wine exports, 95% California, totalled $658mn with 101 million gallons (384 million litres).