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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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