Wine exports grow, much of them from Modesto area. Which countries bought the most?
Wine exports from the United States jumped 10.6% in value in 2021, reversing a four-year decline, an industry group said Monday.
The total reached $1.44 billion despite tariffs, COVID-19 and other challenges, the Wine Institute reported.
The San Francisco-based group represents California wineries, which account for about 95% of U.S. exports. Much of the volume comes from the Modesto area.
The value hit a record high of $1.61 billion in 2016, then dropped each year to $1.29 billion by 2020.
Export volume has dropped over the past decade amid a general rise in value, reaching 89.4 million gallons in 2021. This reflects a shift toward higher-priced bottles from Napa and other premium regions.
The Wine Institute data came from the U.S. Commerce Department.
“While we continue to see some challenges in the international marketplace for U.S. wine exports, we’re encouraged that export data shows a trend toward countering the impact of the global pandemic, retaliatory tariffs, unfavorable exchange rates and other external circumstances,” said Honore Comfort, vice president of international marketing, in a news release.
She added that the group aims “to boost the Golden State’s wine exports by $2.5 billion over the next decade.”
Canada leads the way
Canada was the No. 1 buyer of U.S. wine last year, with 35.6% of the market share. The United Kingdom was second at 13.6%. The European Union, made up of 27 nations, was at 13.2%. Japan, Hong Kong and China were all between 5% and 6%.
The UK and EU both had 2021 declines that the Wine Institute attributed to “shipping challenges sparked by global supply chain issues.”
The industry employs several thousand people in and near Modesto, mainly serving American consumers but also exporting plenty of wine. E.&J. Gallo Winery is the world’s top producer. Other major players include The Wine Group, Bronco Wine Co. and Delicato Family Wines.
Biden helps on trade
Bobby Koch, president and CEO at the Wine Institute, cited an improved trade environment in 2021.
“We are very pleased to see our exports return to growth after several challenging years and we are grateful for the Biden administration’s diligent work to address a number of trade irritants,” he said.
Wine ranked fifth among the state’s farm exports in 2020, says the most recent report from the California Department of Food and Agriculture. Foreign drinkers spent about $1.14 billion.
Almonds led the way at $4.66 billion, followed by dairy at $2.04 billion, pistachios at $1.67 billion and walnuts at $1.25 billion. All except pistachios are big business in Stanislaus County.
