Improved Outlook for California Wine and Grapes

In 2004, United States sales of wine were the highest in history. Exports of California wine increased by 22 percent. This is an amazing growth record! There is an estimated $22 billion U.S. wine industry and CA is responsible for about $14 billion of that total. Californians are also known to consume their fair share of wine. According to the Wine Institute, in 2003 Americans consumed approximately 627 million gallons of foreign and domestic wine and California wine drinkers accounted for 70 percent of that total, which is the equivalent to two out of every three bottles of wine consumed.

Jon Fredrickson, of Gomberg, Fredrickson & Associates, a wine industry research firm, claims the U.S. has a 3 percent industry growth and is the best wine market in the world. There is every reason to believe that growth will continue based on the ever increasing demand and production of fine wines. Particularly noteworthy are the 2001 and 2002 vintages of red wines as some of these are being acclaimed as among the "best in the world". It is anticipated that these wines will gain popularity since the strong European economy is likely to cause a surge in the European wine market. Likewise, the Australian wine market is expected to see a hike in prices of Aussie wine. The higher cost of foreign imports will create more of a demand for domestic varieties.