California Wine Shipments 2009: Modest Volume Increase, Value Decrease
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According to wine industry consultants Gomberg, Fredrikson & Associates, in 2009 California wineries shipped 467.7 million gallons, or 196.7 million wine cases, to the US, recording a modest 0.2% volume increase compared to 2008, for an estimated retail value of $17.9 billion, down 3% from 2008 because of consumers trade-down to lower-priced wines.
California Wine Zones
Overall, California wine shipments worldwide, including the US, decreased 1.2% to 563.5 million gallons, or 237.0 million cases.
"Although consumers were cautious in their spending last year, the underlying consumer trends in the US have kept wine on the dinner table during this tough economy," said Robert P. (Bobby) Koch, President and CEO of Wine Institute. "The baby boomer generation has enjoyed wine for decades and now millennial consumers, who grew up in families who served wine, are also showing an affinity for wine."
Sales to restaurants decreased significantly as on-premise sales decreased 6% to 9%, as consumers dined more at home and ordered more wine by the glass and fewer bottles when dining out. Many wineries placed new emphasis and diverted inventory to direct-to-consumer sales, with tasting room staff training, increasing wine club events, social media outreach, special offers and improved web site presence. The situation improved during the fourth quarter, however, sales of less expensive wines, priced up to $7 a bottle, accounted for much of the sales in 2009.
Wine Sales Increase in US Food Stores
According to Nielsen, the company which provides global media and consumer information and analytics, sales of national wines in US food stores grew 2% in volume in 2009, while imported wine sales in volume remained flat. Wines priced $7 per bottle or less accounted for 72% of the sales and were the most popular in food stores. The second most popular wines for price range in US food stores were those priced $10 to $14, which recorded a 7% increase, followed by wines priced from $7 to $10, whose sales went up 3%, while sales of wines priced $14 and over increased 2% by volume.
As for varieties, Chardonnay shipments increased 4%, enjoying a 22% volume share in supermarkets, followed by Cabernet Sauvignon with 12% of market share, marking a 7%increased, and Merlot, whose sales increased 1%, for an 11% share. White Zinfandel was fourth, with a market share of 8%, down 3% compared to the previous year. These four varietals held a 53% market share of the volume.
US Market: Retail Value Down 4%, Volume Up 2%
In 2009, overall wine sales to the US, including domestic and imported wines, grew 2% in volume compared to 2008, to 767.4 million gallons, or 322.8 million cases, while the estimated retail value dropped 4% to $28.7 billion. Table wines accounted for 670 million gallons, while dessert wines totaled 64 million gallons, and sparkling wines 33 million gallons.
Sparkling Wines
US sales of California sparkling wines increased 8%, securing a 60% market share by volume, while sales of imported wines of this type remained flat.
US Wine Exports: Decrease in Europe, Increase in Asia
According to data released by the US Department of Commerce, the 2009 worldwide recession caused US wine exports, 90% of which originated from California, to drop 9.5% in value, to an estimated $912 million total. Volume sales fell 14.9% to 110.4 million gallons, or 46.4 million cases.
Compared to 2008, shipments of US wines to the EU, which is the major importer, decreased 22% in value in 2009, followed by Canada, which imported $242 million, marking a 7% decrease. Japan is in third place with $79 million, increasing 28% over 2008, Hong Kong is fourth with $47 million and an 84% increase, followed by China, with $36 million, increasing import value a 64% compared to 2008.
Year |
Global California Wine Shipments (Gallons) |
California Wine Shipments in the US (Gallons) |
Estimated Retail Value of CA Wine sold in the US |
2009 |
563.5 |
467.7 |
$17.9 billion |
2008 |
570.2 |
466.7 |
$18.5 billion |
2007 |
555.1 |
457.3 |
$18.9 billion |
2006 |
539.9 |
448 |
$17.8 billion |
2005 |
532.8 |
441.2 |
$16.5 billion |
2004 |
521.7 |
428.2 |
$15.0 billion |
2003 |
493.5 |
417 |
$14.3 billion |
2002 |
464.2 |
401 |
$13.8 billion |
2001 |
449.1 |
387 |
$13.4 billion |
2000 |
445.9 |
392 |
$13.0 billion |
1999 |
443.1 |
397 |
$13.0 billion |
1998 |
432.5 |
385 |
$12.0 billion |
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