Where is California wine going? Top 10 exports by country

Mar 4, 2016

(Cleveland) - California wineries took in a record $1.61 billion in revenue from exports in 2015.

It's a 7.6 percent increase from 2014, figures from the Wine Institute show. Volume was up 4.1 percent to 51.2 million cases. (A case of wine is 12 bottles; for beer, it's 24.)

So where is the wine going? Top 10 export markets for California wines went to countries on four continents:

1. European Union's 28-member countries, $622 million.

2. Canada, $461 million.

3. Hong Kong, $97 million.

4. Japan, $96 million.

5. China, $56 million.

6. Nigeria, $29 million.

7. Mexico, $26 million.

8. South Korea, $23 million.

9. Switzerland, $21 million.

10. Singapore, $15 million.

More than 170 wineries participating in the Wine Institute's California Wine Export Program export to 138 countries, said Linsey Gallagher, vice president of international marketing for the Wine Institute. Ninety percent of U.S. wine exports are from California. 

"This wine is going all over the world, truly," Gallagher said.

The data bundles European countries, she said, because much of the exported wine goes by water before being disseminated via rail to multiple locations. But as a whole, the figures show growth in exports to the European Union, led by the United Kingdom and then Germany.

A few surprises swirled out of the glass, so to speak:

"The single largest country for us in terms of dollar value is Canada," Gallagher said. "It's about 30 percent of our exports."

Canada, it seems, definitely can't be stereotyped by doughnut eaters and beer drinkers.

"Growth to Canada over the last five years has been astounding," she said, with Ontario and Quebec the largest provincial recipients.

"They love California wine, which is fantastic for us. There is a lot of tax that gets added.

But we're not penalized; they're not expecting our producers" to shoulder that portion of the cost.

"Another interesting trend: Nigeria wasn't even in our top 20 five years ago," she said. "That was a blip on the data. Clearly that is a beachhead, Continental Africa."

And while the Wine Institute always has to keep an eye on currency-exchange rates, a few trends might be emerging.

"If you look at Hong Kong or China, that's an important part of our story," she said. Hong Kong was up 41 percent. China was down, but it's the fifth largest market for us. There's more growth there. Our brand is very strong in the Chinese market."

California's bread-and-butter sellers domestically - Cabernet Sauvignon and Chardonnay – also are satiating other nations' thirsts, along with Zinfandel, Gallagher said.


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