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The Honolulu Advertiser

Posted on: Saturday, February 19, 2005

2004 wine exports up by 28 percent

By Michelle Locke
Associated Press

BERKELEY, Calif. — Robust marketing and a weak dollar led to a sharp jump last year in U.S. wine sales abroad, industry observers said.

The breath-taking beauty of California vineyards such as this one in Buelton have long drawn visitors for wine tastings. Now, helped by a weak dollar, sales of California wines are up in Europe, Canada and Japan. About 95 percent of all U.S. wine is made in California.

Ric Francis • Associated Press

Preliminary figures released by the U.S. Commerce Department and reported yesterday by the San Francisco-based Wine Institute showed wine exports were up 28 percent from the previous year, totaling $794 million in winery revenues. Some 95 percent of wine exports are from California.

By volume, the increase was 29 percent, to 119 million gallons.

"Wineries have really begun to take seriously their export markets, and the gains have been quite substantial," said industry analyst Eileen Fredrikson of Gomberg, Fredrikson and Associates.

The top overseas market for California wine was the United Kingdom. Export revenues to that country were up 41 percent to $299 million, and volume was up 20 percent to 38 million gallons.

"California wine had another fantastic year in the U.K.," John McLaren, the Wine Institute's United Kingdom director, said in a news release.

McLaren said nearly one in seven bottles consumed in the United Kingdom comes from California.

Wine Institute International Director Joseph A. Rollo said in a statement that the weaker dollar helped California wineries better compete on pricing.

Other top overseas markets for U.S. wine in 2004 were Canada at $124 million, the Netherlands at $86 million, Japan at $82 million and Germany at $27 million.