CALIFORNIACATION OF THE WINE INDUSTRY

The huge grape crush of 2005 hit at a time when wine consumption continues to grow in the United States. Overall wine sales were up 5% last year and California sales were up 4%. Imports, however, continue to take the cake with 11% growth but only 81.5 shipments in the U.S. California shipped almost 187 million cases overseas. But despite California’s struggles with imports, wine-drinking has become an American way of life. The United States is slated to become the largest wine-drinking nation by 2010 with wine-consumption waning in France and Italy and soaring in the U.S. In order to compete with imports, U.S. wineries must focus on price and quality. According to Glenn Proctor of Joseph W. Ciatti Co., “Commodity-based (wine) supply in California is at risk of being outsourced. This mean SJV wine grapes,” as quoted in Western Farm Press.