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Wine exports set record, led by California labels

The $1.62 billion in foreign trade revenue for 2016 bested the previous year’s record of $1.49 billion by a slim margin through steadily strong sales in the top market.

15/02/2017

About 90% of the 49.5 million cases of U.S. wine sold came from California, according to a report released Tuesday by the California-based industry advocacy group. 

But it was the price tag of the wines, more than the volume, that drove revenue, continuing a trend of “premiumization” of Golden State labels, said Robert P. Koch, Wine Institute president and chief executive. 

“California wines are well positioned for this trend — our vintners are offering quality, value, diverse styles and environmental stewardship in their winemaking,” Koch said. 

The 28 countries of the European union —  Britain and Germany paramount among them — accounted for $685 million in revenue. But Canada was the top single nation buying U.S. wine, shelling out $431 million, largely for table wines. It was followed by China and Hong Kong, with $181 million; Japan, $87 million; Mexico, $24 million; South Korea, $23 million; Switzerland, $19 million; and Singapore, $14 million.

Overall, California wine exports grew about 78% as the state and its tourism promoters have cemented the Golden State as a chic label unto itself, particularly among the emerging middle class in China, said Linsey Gallagher, the institute’s vice president of international marketing.

Some of that growth may also be due to the emergence of wine regions throughout California, including in the Central Coast and Sierra Foothills.

“This is not just a Napa and Sonoma story — that’s obviously a huge part of the story — but we make and grow wine in 48 of 58 counties of the state,” Gallagher said

A crackdown on luxury items purchased by Chinese government officials had caused pain for other exporters over the last couple of years, including California almond growers. 

“California wine wasn’t as entrenched in that government channel, so therefore we weren’t as impacted by it,” Gallagher said. “What I think you’re seeing in the numbers for this year for California wine exports is consumers are connecting with our brand and us becoming a region of choice.”

Canadian sales slowed down from the previous year, though U.S. labels remained the top table wines for our northern neighbor.

Read more at source: Los Angeles Times 

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