Quantcast

North Bay Business Journal

Thursday, March 22, 2012, 10:11 am

California wine shipments in 2011 rise 5.6 percent to new record

U.S. the top wine market; total U.S. wine sales rise 5%; exports rise 21%

By Wine Institute

Print Friendly Print Friendly    

Share this item

    Sales of California wine within the U.S. in 2011 grew to a record 211.9 million cases, up 5.6 percent in volume compared to the previous year, according to preliminary figures released today by industry analysts.

    Wine sales ended 2011 on a positive note

    March 12, 2012

    Sales of California fine wine ended 2011 on the upswing, and vintner margins are improving, according to a recent industry survey and new data on California shipments. [read more]

    The estimated retail value of these shipments was $19.9 billion, according to wine industry consultant Jon Fredrikson of Gomberg, Fredrikson & Associates in Woodside. Global 2011 California wine sales to all markets in the U.S. and worldwide also increased 5.6 percent to 256.6 million cases.

    “California’s vintners grew the wine market with creative, innovative offerings at all price points,” said Wine Institute President and CEO Robert P. Koch. “Our wineries are in sync with consumer tastes and California wines have increasingly become a preferred lifestyle choice.” 

    Wineries worldwide competed for consumer attention in the U.S. with thousands of brands — 120,000 new wine labels were approved by the U.S. Tax and Trade Bureau last year. Wine sales expanded as Americans were treated to a diverse array of classic and new wine choices including Moscato, sweet reds and other easy-drinking wines with unpretentious packaging. Restaurant business recovered somewhat and value-oriented wines were still key for on-premise offerings. Many marketers focused on new opportunities in the direct-to-consumer channel as the number of states that now accept these shipments has expanded to 39, and apps and other technologies have made it easier for consumers to use these online options, according to Fredrikson.

    Varietal trends in U.S. off-premise food, drug, convenience, retail chains

    Wine sales in U.S. off-premise measured channels from all domestic and foreign production sources grew 2 percent on volume and almost 4 percent on value, according to Nielsen, a leading global provider of information and insights into what consumers watch and buy. Most of the growth was with wines from California and other U.S. states, up 4 percent in volume, while imports shrunk 1 percent in volume. Within table wine, Chardonnay remained the most popular with 21 percent of the volume, followed by Cabernet Sauvignon, 12 percent volume share; Merlot, 10 percent volume share, Pinot Grigio/Gris, 8 percent market share, and White Zinfandel, 7 percent market share. The most impressive percentage gains were Muscat/Moscato now up close to 4 percent market share, and growing by 73 percent in volume, and sweet red wines, close to a 1 percent share, with growth over 200 percent. Also of note among varietals with double digit gains were Malbec, holding a 1 percent share, up 33 percent in volume and Pinot Noir, a 4 percent share and growing 12 percent in volume. Blended Red wines also grew at double digit levels and moved up close to a 5 percent market share.

    “Wine consumers are adventuresome by nature so Muscat/Moscato became a popular new flavor to try, experiencing the largest varietal volume gain of the year,” commented Danny Brager, vice president of client services for beverage alcohol at The Nielsen Company. The “millennial” consumer, aged 21-34 who make up 26 percent of legal drinking age Americans, continue to be a wine sales growth driver, while Baby Boomers continue to be the largest generations contributor to overall wine sales. Even with the volatile economy, consumers are finding high quality and value in the wine category, and continue to experiment with sweet reds, unoaked wines, wine blends, and other diverse offerings, he explained.

    U.S. again world’s largest wine market

    Total wine sales in the U.S. from all production sources — California, other U.S. states and foreign countries — climbed to a new record of 347.0 million cases, a 5.3 percent jump from 2010, with an estimated retail value of $32.5 billion, according to Fredrikson. Of the total, California’s 211.9 million cases held a 61 percent share of the U.S. market. This is the 18th consecutive year of volume growth in the U.S.

    Sparkling wine, Champagne

    Shipments of sparkling wine and Champagne were the highest in the last 25 years, reaching 17.2 million cases, up 13 percent over the previous year. Strong sales came from a variety of different producers and regions worldwide. Prosecco and sparkling Moscato were among the winners, but Champagnes, other sparkling wines and California methode champenoise wines also experienced gains.

    Exports also reach new record

    U.S. wine exports, 90 percent from California, reached a new record of $1.39 billion in winery revenues in 2011, an increase of 21.7 percent compared to 2010. Volume shipments were up 5.8 percent to 455.7 million liters or 50.6 million nine-liter cases. Thirty-four percent of U.S. wine exports by value were shipped to the 27-member countries of the European Union, accounting for $478 million of the revenues, up 10 percent from 2010. Other top markets were: Canada, $379 million, up 23 percent; Hong Kong, $163 million, up 39 percent; Japan, $105 million, up 39 percent; and China, $62 million, up 42 percent.

    California wine shipments 1

    (In millions of 9-liter cases)

     

    Year

    to U.S. and abroad

    to U.S.

    Est. retail value to U.S.2

    2011

    256.6

    211.9

    $19.9 billion

    2010

    242.9

    200.7

    $18.5 billion

    2009

    237.1

    196.7

    $17.9 billion

    2008

    239.8

    196.3

    $18.5 billion

    2007

    233.5

    192.3

    $18.9 billion

    2006

    227.1

    188.4

    $17.8 billion

    2005

    224.1

    185.6

    $16.5 billion

    2004

    219.4

    180.1

    $15.0 billion

    2003

    207.6

    175.4

    $14.3 billion

    2002

    195.2

    168.7

    $13.8 billion

    2001

    188.9

    162.8

    $13.4 billion

    2000

    187.5

    164.9

    $13.0 billion

    1999

    186.4

    167.0

    $13.0 billion

    1998

    181.9

    161.9

    $12.0 billion

    1 Includes table, champagne/sparkling, dessert, vermouth, other special natural, sake and others. 2 Estimated retail value includes markups by wholesalers, retailers and restaurateurs.
    Excludes foreign bulk shipped by California wineries. Source: Gomberg-Fredrikson & Associates and Wine Institute. Preliminary figures. History revised. To convert cases to gallons, multiply cases by 2.3775

    Shipments from California, other states, foreign producers
    entering U.S. distribution

    (in millions of 9-liter cases)

    Year

    Table1

    Dessert2

    Sparkling/ Champagne

     Total

    Retail value3

    2011

    299.3

    30.6

    17.2

    347.0

    $32.5 billion

    2010

    285.1

    29.3

    15.2

    329.7

    $30.0 billion

    2009

    280.2

    27.2

    13.8

    321.1

    $28.7 billion

    2008

    272.9

    27.5

    13.4

    313.8

    $30.0 billion

    2007

    272.0

    26.3

    13.8

    312.1

    $30.4 billion

    2006

    264.0

    24.1

    13.6

    301.6

    $27.8 billion

    2005

    256.2

    21.9

    13.0

    291.1

    $25.8 billion

    2004

    247.7

    18.9

    13.0

    279.7

    $24.0 billion

    2003

    239.7

    16.8

    12.1

    268.8

    $22.3 billion

    2002

    232.2

    15.6

    11.8

    259.5

    $21.8 billion

    2001

    215.4

    14.3

    11.4

    241.4

    $20.3 billion

    2000

    213.2

    13.9

    11.8

    238.9

    $19.2 billion

    1999

    199.8

    13.0

    15.6

    228.4

    $18.1 billion

    1998

    196.0

    13.0

    12.2

    221.2

    $17.0 billion

    1997

    193.9

    12.2

    12.2

    218.3

    $16.1 billion

    1996

    184.6

    13.0

    12.2

    210.3

    $14.3 billion

    1995

    169.9

    12.6

    12.6

    195.2

    $12.2 billion

    1994

    165.7

    13.9

    13.0

    192.6

    $11.5 billion

    1993

    160.2

    14.7

    13.9

    188.9

    $11.0 billion

    1992

    170.3

    15.6

    13.9

    200.2

    $11.4 billion

    1991

    165.7

    16.4

    13.9

    196.0

    $10.9 billion

    Sources: Wine Institute (volume), Department of Commerce, estimates by Gomberg, Fredrikson & Associates. Preliminary. History revised.
    Totals may not add up exactly due to rounding. Excludes exports. To convert cases to gallons, multiply cases by 2.3775
    1 Includes all still wines not over 14 percent alcohol; excludes Canadian malt coolers.
    2 Includes all still wines over 14 percent alcohol and sake. History revised based on TTB reports.
    3 Estimated retail value includes markups by wholesalers, retailers and restaurateurs.

    Copyright © 1988–2014 North Bay Business Journal
    View the policy for linking to website content.

    Print Friendly Print Friendly    

    Comments

    1 Comment

    1. April 2, 2012, 12:23 pm

      by Alex

      Once this song falls out of favor you are going to see moscato sales drop- http://www.bonappetit.com/blogsandforums/blogs/badaily/2012/03/rappers-influence-wine-sales.html


    Submit Your Comments

    Required

    Required, will not be published

    Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments and Letters Policy. To share this item by email or social media, use the links above.

    Do not use this form to contact people, companies or organizations mentioned in this story. Contact them directly. Private messages left here will be deleted.