Bulk Wine to the EU Reaches New High
California’s Wine Institute said U.S. wine exports, 95% from California, reached a record high $951 million in 2007, an 8.6% jump from the previous year. Volume shipments in 2007 increased 12% to 453 million liters, compared to 2006.
"The long-term sales trend continues to be positive. Over the last decade, U.S. and California wine exports increased 77% in value and were shipped to 125 countries," said Joseph Rollo, Director of the Wine Institute International Department.
President Bobby Koch said California wines were able to expand into new and existing markets, despite competition, protectionist tariffs, distribution restrictions and production subsidies that “maintained an unlevel playing field.” However, the 2006 signing of a Wine Trade Agreement between the United States and the European Union helped create "a more stable trading environment" for California vintners, he said.
About half of U.S. wine exports are shipped to the European Union, accounting for $474 million, followed by Canada, $234 million; Japan, $63 million; Switzerland, $26 million; and Mexico, $24 million.
California wines did particularly well in the UK, according to Wine Institute’s Trade Director for the UK, John McLaren. He said the UK is “refreshingly enlightened and open-minded about California wines,” particularly “in the growing mid-price sector.”
However, bulk wine shipments drove down value. Bulk wine sales to Europe have grown faster than bottled sales as producers increasingly ship bulk wine overseas for bottling. Total bulk table wine exports jumped 22% by volume to 169 million liters and grew 25% by value to $151 million. Total branded bottled table wine exports rose 9.5% to 207 million liters and were up 3% in value to $635 million. As a result, sales by value were slightly lower then volume, up a healthy 7% in 2007.
"A wider availability of competitively priced California wines that appeal to the European palate is key in improving California's market share by value," said European Trade Director Paul Molleman.
The dollar’s low exchange rate is party the reason for the strong sales, allowing California winemakers to price products even more aggressively in 2007. Hopefully they won’t fall in the footsteps of the Australians who were forced to sell bulk wine for next to nothing in the face of a years-long grape glut.
Meanwhile, exports to Canada have rebounded by 23% to $234 million thanks to more favorable exchange rates, new product introductions, more retail promotions and media coverage.
Other major growth markets include: South Korea, up 60% to $18 million; China, up 74% to $16 million; and Singapore, up 50% to $9 million.
FOSTER’S CUTS BACK SHIPMENTS TO THE UK
Speaking of Europe, Foster’s Group has reportedly stopped shipping some of its Australian wines to the UK, according to the Financial Times, because it is more profitable to sell them elsewhere. British retailers have pushed wine prices way down, making other regions such as the US and Asia much more viable for Foster’s.
Managing director Peter Jackson no longer gets allocations of some boutique wines from Australia, and is instead getting smaller allocations of wines from "hot" regions such as Western Australia and New Zealand.
"My allocations are a lot smaller than they used to be. Wine companies are allocating products far more to the most profitable markets," he said, as quoted in the FT.
Tesco’s director for wine, Dan Jago, meanwhile, says he has no problem sourcing wine from Chile, Argentina and South Africa. Foster's has also started sourcing more wine from Chile and South Africa as Australia faces a grape shortage.
FRENCH AUTHORITIES TO REDEFINE CHAMPAGNE REGION
Champagne demand is leading French authorities to redefine the AOC of Champagne, originally drafted in 1927. The Institut National de l'Origine et de la Qualité (INAO) will redraw the boundaries of the famous Champagne-Ardenne region by March 13, expanding the 33,500-hectare region to include up to 40 villages. About 317 villages are considered to have the right soil and weather conditions to produce grapes sufficient for Champagne production.
EDDRINGTON EXPANDS MACALLAN DISTILLERY
Edrington is launching a £40m expansion of its Macallan distillery to meet growing demand for the single malt. Recall that both Diageo and Pernod have announced similar investments into the Scotch category, with an expansion of Glenlivet by Pernod and a £100 million investment by Diageo. Sales of Macallan have almost doubled in the last five years, according to The Scotsman. It is also the second best selling single malt Scotch whisky in the world by value.
The expansion will include the opening of a mothballed stillhouse as well as the creation of six new maturation warehouses and thousands of oak casks. The first two warehouses will be completed later this year, with construction of the other four spread over the next 5 to 10 years.
PERNOD WELCOMES RETURN OF PRESTIGE CUVEE R. LALOU
G.H. Mumm and Chef de Caves Didier Mariotti have announced a rare addition to its Champagne portfolio, the 1998 R. Lalou (suggested retail price: $159.99) available at fine restaurants and select wine outlets nationwide.
The Cuvée R. Lalou is the offspring of the Cuvée René Lalou, originally launched in 1966 and last released in 1985. Only nine vintages punctuate the Champagne’s 25-year history, yet it is still ranked among the greatest Champagne cuvées ever conceived, said Pernod in a statement.
WSD BRIEFS:
ARIZONA ALCOHOL TAXES may double if a ballot measure is passed. The extra money would go to hospitals serving children and the poor. Arizona's current taxes are $3 per gallon on liquor, 16 cents per gallon on beer and 84 cents per gallon on wine, according to local reports. As you can imagine, restaurants and bars are ready to fight the “happy hour” tax increase.
A KENTUCKY BILL that would allow wine to be sold in grocery stores with more that 10,000 square feet of space has been introduced by Rep. Larry Clark. Kentucky is one of 16 states that do not allow grocery stores to sell wine. HB 585 has been sent to the Licensing & Occupations committee for review and is backed by the Kentucky Wineries Association.
OKLAHOMA WINERIES are attempting to legalize direct shipments once again after the practice was banned in 2006. A bill that would allow OK wineries and out-of-state wineries to sell up to 10,000 gallons of wine a year directly to package stores and restaurants was passed by the Senate last year. The AP reports that the measure is finally scheduled to be heard by the House Rules Committee this week.
SIDNEY FRANK AND SAZERAC has completed Sazerac’s purchase of Corazon de Agave Tequila brand, available in Blanco, Reposado & Anejo, from Sidney Frank Importing Co., for an undisclosed amount.
LIQUOR STORES INCOME FUND, a Canadian retail liquor company, is reportedly “pursuing opportunities to expand into the United States,” according to ceo Irv Kipnes.
MYSTIQUE BRANDS IS ADDING CACHACA Fazenda Mãe De Ouro to its spirits portfolio. Fazenda Mãe De Ouro is located in the most celebrated Cachaça-producing state in southeast Brazil, Minas Gerais.
Until tomorrow, Megan
“Procrastination is the art of keeping up with yesterday.”
Don Marquis
--------- Sell Day Calendar ----------
Today's Sell Day: 1
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
"The long-term sales trend continues to be positive. Over the last decade, U.S. and California wine exports increased 77% in value and were shipped to 125 countries," said Joseph Rollo, Director of the Wine Institute International Department.
President Bobby Koch said California wines were able to expand into new and existing markets, despite competition, protectionist tariffs, distribution restrictions and production subsidies that “maintained an unlevel playing field.” However, the 2006 signing of a Wine Trade Agreement between the United States and the European Union helped create "a more stable trading environment" for California vintners, he said.
About half of U.S. wine exports are shipped to the European Union, accounting for $474 million, followed by Canada, $234 million; Japan, $63 million; Switzerland, $26 million; and Mexico, $24 million.
California wines did particularly well in the UK, according to Wine Institute’s Trade Director for the UK, John McLaren. He said the UK is “refreshingly enlightened and open-minded about California wines,” particularly “in the growing mid-price sector.”
However, bulk wine shipments drove down value. Bulk wine sales to Europe have grown faster than bottled sales as producers increasingly ship bulk wine overseas for bottling. Total bulk table wine exports jumped 22% by volume to 169 million liters and grew 25% by value to $151 million. Total branded bottled table wine exports rose 9.5% to 207 million liters and were up 3% in value to $635 million. As a result, sales by value were slightly lower then volume, up a healthy 7% in 2007.
"A wider availability of competitively priced California wines that appeal to the European palate is key in improving California's market share by value," said European Trade Director Paul Molleman.
The dollar’s low exchange rate is party the reason for the strong sales, allowing California winemakers to price products even more aggressively in 2007. Hopefully they won’t fall in the footsteps of the Australians who were forced to sell bulk wine for next to nothing in the face of a years-long grape glut.
Meanwhile, exports to Canada have rebounded by 23% to $234 million thanks to more favorable exchange rates, new product introductions, more retail promotions and media coverage.
Other major growth markets include: South Korea, up 60% to $18 million; China, up 74% to $16 million; and Singapore, up 50% to $9 million.
FOSTER’S CUTS BACK SHIPMENTS TO THE UK
Speaking of Europe, Foster’s Group has reportedly stopped shipping some of its Australian wines to the UK, according to the Financial Times, because it is more profitable to sell them elsewhere. British retailers have pushed wine prices way down, making other regions such as the US and Asia much more viable for Foster’s.
Managing director Peter Jackson no longer gets allocations of some boutique wines from Australia, and is instead getting smaller allocations of wines from "hot" regions such as Western Australia and New Zealand.
"My allocations are a lot smaller than they used to be. Wine companies are allocating products far more to the most profitable markets," he said, as quoted in the FT.
Tesco’s director for wine, Dan Jago, meanwhile, says he has no problem sourcing wine from Chile, Argentina and South Africa. Foster's has also started sourcing more wine from Chile and South Africa as Australia faces a grape shortage.
FRENCH AUTHORITIES TO REDEFINE CHAMPAGNE REGION
Champagne demand is leading French authorities to redefine the AOC of Champagne, originally drafted in 1927. The Institut National de l'Origine et de la Qualité (INAO) will redraw the boundaries of the famous Champagne-Ardenne region by March 13, expanding the 33,500-hectare region to include up to 40 villages. About 317 villages are considered to have the right soil and weather conditions to produce grapes sufficient for Champagne production.
EDDRINGTON EXPANDS MACALLAN DISTILLERY
Edrington is launching a £40m expansion of its Macallan distillery to meet growing demand for the single malt. Recall that both Diageo and Pernod have announced similar investments into the Scotch category, with an expansion of Glenlivet by Pernod and a £100 million investment by Diageo. Sales of Macallan have almost doubled in the last five years, according to The Scotsman. It is also the second best selling single malt Scotch whisky in the world by value.
The expansion will include the opening of a mothballed stillhouse as well as the creation of six new maturation warehouses and thousands of oak casks. The first two warehouses will be completed later this year, with construction of the other four spread over the next 5 to 10 years.
PERNOD WELCOMES RETURN OF PRESTIGE CUVEE R. LALOU
G.H. Mumm and Chef de Caves Didier Mariotti have announced a rare addition to its Champagne portfolio, the 1998 R. Lalou (suggested retail price: $159.99) available at fine restaurants and select wine outlets nationwide.
The Cuvée R. Lalou is the offspring of the Cuvée René Lalou, originally launched in 1966 and last released in 1985. Only nine vintages punctuate the Champagne’s 25-year history, yet it is still ranked among the greatest Champagne cuvées ever conceived, said Pernod in a statement.
WSD BRIEFS:
ARIZONA ALCOHOL TAXES may double if a ballot measure is passed. The extra money would go to hospitals serving children and the poor. Arizona's current taxes are $3 per gallon on liquor, 16 cents per gallon on beer and 84 cents per gallon on wine, according to local reports. As you can imagine, restaurants and bars are ready to fight the “happy hour” tax increase.
A KENTUCKY BILL that would allow wine to be sold in grocery stores with more that 10,000 square feet of space has been introduced by Rep. Larry Clark. Kentucky is one of 16 states that do not allow grocery stores to sell wine. HB 585 has been sent to the Licensing & Occupations committee for review and is backed by the Kentucky Wineries Association.
OKLAHOMA WINERIES are attempting to legalize direct shipments once again after the practice was banned in 2006. A bill that would allow OK wineries and out-of-state wineries to sell up to 10,000 gallons of wine a year directly to package stores and restaurants was passed by the Senate last year. The AP reports that the measure is finally scheduled to be heard by the House Rules Committee this week.
SIDNEY FRANK AND SAZERAC has completed Sazerac’s purchase of Corazon de Agave Tequila brand, available in Blanco, Reposado & Anejo, from Sidney Frank Importing Co., for an undisclosed amount.
LIQUOR STORES INCOME FUND, a Canadian retail liquor company, is reportedly “pursuing opportunities to expand into the United States,” according to ceo Irv Kipnes.
MYSTIQUE BRANDS IS ADDING CACHACA Fazenda Mãe De Ouro to its spirits portfolio. Fazenda Mãe De Ouro is located in the most celebrated Cachaça-producing state in southeast Brazil, Minas Gerais.
Until tomorrow, Megan
“Procrastination is the art of keeping up with yesterday.”
Don Marquis
--------- Sell Day Calendar ----------
Today's Sell Day: 1
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
posted at 2:01 PM
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