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Wine propels Napa exports to record high
Jul 27, 2015
(NVR) - Napa County exported $343 million dollars’ worth of goods in 2014, an 8 percent increase over 2013 and more than double that of 10 years ago.
The lion’s share of those goods — 69.5 percent — was likely wine, which the U.S. Chamber of Commerce lumps in with tobacco products in its export report.
“With Napa’s emphasis on wine production, we are assuming the majority of this change can be attributed to wine exports,” said Patsy McGaughy, communications director at Napa Valley Vintners.
Except for one year, Napa County exports have been on the rise for the past decade. In 2005 local exports totaled $116 million.
Napa County’s other major exports are foods, computer and electronic products and metal and wood products. However, each of those categories only represented from 5 to 10 percent of all exports.
“Napa Valley is a world-class, internationally renowned wine region and demand for our wines around the globe continues to grow,” said McGaughy.
The Napa Valley Vintners helps its members with export marketing, she said. “Interest in our international program is stronger today than ever before. We see this news as a positive indicator of the overall health of the Napa Valley wine industry.”
“Obviously, it’s a good thing,” said Elizabeth Krauth, director of the U.S. Commercial Service in North Bay, part of the U.S. Department of Commerce.
“Everybody wants to export,” she said. “We don’t have all the consumers here.” Companies that don’t export can be in danger of being swamped by their competitors, Krauth cautioned.
“More and more U.S. businesses are realizing that selling their world-class goods to the potential customers who live outside the United States is critical to their success,” said Stefan Selig, undersecretary of commerce for international trade at the U.S. Department of Commerce.
As a category, U.S. wine exports — 90 percent of which are from California — reached $1.49 billion last year, the second highest dollar value and a 64 percent increase from five years ago, said Linsey Gallagher, vice president of international marketing at the Wine Institute.
“Despite the strong U.S. dollar and heavily subsidized foreign competition and high tariffs, consumers worldwide are attracted to California wine,” she said. “Napa Valley vintners have been active for many years in helping to build international markets for our wines.”
The Department of Commerce helps companies in Napa compete globally by launching or expanding exporting operations. “These efforts are important to strengthening both the local and national economy and creating well-paying jobs here at home,” said Selig.
“If we are not competing in their market, then we are going to be losing market share,” said Krauth. “We need to be overseas and competing with those who are sending wine to our markets.”
Exporting brings great benefits to communities across the United States; on average, every $1 billion of U.S. goods and services exports supports nearly 5,800 jobs, said Krauth.
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