California wine exports fell 5.5% in value to $1.53 billion and 7.9% in volume to 42.2 million cases last year. Wine institute, which reported the number, attributed the decline in part to the strong dollar, heavily-subsidized foreign wine producers and competitors forging free trade agreements in key markets.
“Global premiumization continues and California wines are well-positioned with our range of offerings, aspirational lifestyle, well-earned reputation for high quality and leadership in sustainable winegrowing,” said Robert P. (Bobby) Koch, President and CEO of Wine Institute.
“California wine exports have grown nearly 70% by value in the past decade. Our global marketing efforts focusing on the quality and diversity of California wine continue to gain traction with our trading partners throughout the world,” said Wine Institute Vice President of International Marketing Linsey Gallagher.
Gallagher oversees Wine Institute’s California Wine Export Program, involving more than 175 wineries that export to 138 countries, and 15 representative offices conducting programs in 25 countries across the globe.
The top 10 export markets for California wines are: the European Union’s 28-member countries, accounting for $553 million, Canada, $444 million; Hong Kong, $119 million; Japan, $94 million; China, $79 million; South Korea, $25 million; Mexico, $23 million; Singapore, $17 million; Philippines, $14 million; and Dominican Republic, $13 million.
“Free trade agreements that place the U.S. on equal footing with other wine producing countries are absolutely essential to growing U.S. wine exports,” said Charles Jefferson, Wine Institute Vice President of Federal Relations and International Trade Policy.