California dreaming


With volume shipments of US wine exports to the EU up by 1.4% in 2011, the Californian wine industry has recorded another successful year


Brand Central

13 March 2012

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Following hot on the heels of the previous year’s success when revenues from US wine exports rose by 25.6% in 2010 over 2009 wine exports, Californian wines have now recorded another successful year. The Wine Institute of California reports that US wine exports, 90% of which are from California, reached a new record of $1.39 billion in winery revenues in 2011, an increase of 21.7% compared to 2010. Volume shipments were up 5.8% to 455.7 million litres or 50.6 million nine-litre cases.

“The quality, diversity and value of Californian wines have propelled us to another record year for wine exports,” said Robert P. (Bobby) Koch, Wine Institute president and CEO. “Our success in removing trade barriers and opening new markets as well as significant marketing investments by our wineries will allow us to reach our goal of $2 billion in exports by 2020.”
“Our global Discover California Wines campaign with its link to California’s iconic and aspirational lifestyle resonates with consumers, media and trade throughout the world,” added Linsey Gallagher, Wine Institute’s international marketing director. 

Exports to Europe rising

Thirty-four percent of US wine exports by value were shipped to the 27-member countries of the European Union, accounting for $478 million of the revenues, up 10% from 2010. Volume shipments to the EU reached 28 million cases in 2011, edging up 1.4% from the previous year. Other top markets were: Canada, $379 million, up 23%; Hong Kong, $163 million, up 39%; Japan, $105 million, up 39%; and China, $62 million, up 42%.
Ireland’s closest neighbour, the UK, has noted that California is increasingly able to perform well at higher price points. “In a challenging economy, the UK wine market does not stand still, and new sectors and opportunities have arisen. California has been responsive to these, and has built on the bedrock of its major branded wines with successes in the independent retail sector and on-trade outlets. Growth in these areas introduces our wines to new audiences, and enables California to demonstrate its diversity at higher price points. This growth is by no means exhausted, and augurs well for the future here,” said John McLaren, Wine Institute trade director for the UK.
"Californian wines fared well in most European countries,” added Paul Molleman, Wine Institute’s trade director for Continental Europe. “In Sweden for instance, sales growth of Californian wines were the highest of all wine supplying countries in Sweden. The story was similar in Germany, where California again experienced the highest growth rate of all wine exporting countries. However, a significant portion of California wine imported into Germany is re-exported and actually sold in other European markets. Additionally, as a word of caution, the 10% change in the Euro/Dollar exchange rate of the past few months may have an effect on exports to Europe in early 2012.”  

Bursting with flavour

Having taken the US by storm, Gallo Family Vineyards Moscato, from the E&J Gallo Winery, will be launching in Ireland in May 2012. Bursting with flavours of peach, honey and ripe citrus, Gallo Family Vineyards Moscato will be available extensively throughout the off-trade with a RSP of €8.49. The first of its kind in Ireland and specifically created to be enjoyed chilled, Gallo Family Vineyards Summer Red has joined the other award winning Gallo Family Vineyard varietals, now a firm favourite for Californian wine fans including, Cabernet Sauvignon, Pinot Noir, Sauvignon Blanc, Pinot Grigio and White Grenache.
2012 will also see the launch of Barefoot Cabernet Sauvignon, a lush and lasting red wine that will become part of the popular E&J Gallo Winery portfolio making its mark on the Irish market. Over the past three years Barefoot Wine has joined the line up at local Irish music festivals and community events, along with Taste of Dublin and the National Ploughing Championships – with plans to support these events again in 2012. Whether it’s taking a stand in the sand to keep Europe’s beaches barefoot friendly or stepping out and proud with the LGBT community, Barefoot Wine has worked alongside some great causes over the years, supporting over 3,000 charities worldwide. Barefoot varietals currently available extensively throughout the off-trade and wholesale channel include, Merlot, Pinot Grigio and White Zinfandel, with Barefoot Sauvignon Blanc now available in SuperValu and Centra stores nationwide.
Working together in a close partnership, E&J Gallo Winery and 10 International Ireland, E&J Gallo’s newly appointed distributor for the Republic of Ireland, have exciting plans for the range of Gallo brands, supported by significant investment, new brand launches and innovative promotions.
Packaged in distinctive carafe shaped bottles, Paul Masson retails in Ireland at around E10

Packaged in distinctive carafe shaped bottles, Paul Masson retails in Ireland at around E10

A distinct pleasure

Paul Masson is one of the great success stories from California in the last number of years. Sales continue to boom here in Ireland with 2012 looking to be another good year for the brand. Made distinctive by its carafe shaped bottle the red, white and rosé litres retail around €10. 


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