Californian wine sales in US hit $31.9bn

Californian wine shipments to the US reached an estimated retail value of $31.9 billion in 2015 while sales to all markets, both domestic and international, reached 276 million cases – a record high for the Golden State.

California cabernet vineyards

According to the California Wine Institute, the state shipped an all-time high of 229 million cases to the US in 2015, representing a 60% share of the US wine market. A further 47 million cases shipped to global markets outside of the US. In total, California shipped 276 million cases worldwide.

The European Union was the top destination for US wine exports, accounting for $622 million, followed by Canada ($461m), Hong Kong ($97m), Japan ($96m), China ($56m), Nigeria ($29m), Mexico ($26m), South Korea ($23m).

Emerging trends affecting the US market included the increasing prominence of millennial, who now make up a third of consumers over 21 years of age. Increasingly, wineries are making a concerted effort to appealing to this young group of consumers seeking premium wines.

The lower 2015 harvest has also helped to drive premium wine sales.

“The premium wine segment $10 and above is continuing its long-term growth trend,” said Jon Moramarco, founder and managing partner of BW166, who, along with Wine Communications Group, recently purchased The Gomberg-Fredrikson Report, which is used by the California Wine Institute to collate its statistics and analysis of the US market.

“The premium segment accounts for about a quarter of the shipments but half of the revenues. These sales offset the shrinking volume of value-priced wines $9 and under,” he added.

Because of the move to higher value wines, dollar sales grew significantly faster than case sales in 2015, according to Nielsen. In US food stores, total wine volume sales grew 2% while total revenues increased 6%, compared to the previous year.

“The number of US supermarkets selling wine is increasing, hitting about 30,000 last year, an increase of over 1,700 stores compared to 2011,” said Danny Brager, senior vice president of Nielsen’s beverage alcohol practice area.

“No longer confined to specialty shops and liquor marts, many grocery stores are offering a cornucopia of wines to be part of a growing category. Both consumers and retailers are reaping the benefits.”

According to Nielsen, the most popular table wine types by volume sold in the US off-trade were Chardonnay (21%), Cabernet Sauvignon (14%), Red Blends/Sweet Reds (10%), Pinot Grigio/Gris (9%), Merlot (8%), followed by Pinot Noir (5.5%), Moscato (5%), Sauvignon Blanc (5%) and White Zinfandel (4%). The Wine Institute also notes an increase in shipments of sparkling wine and Champagne to the US, which received 21.7 million cases in 2015 – up 9% on the previous year.