California wine sales grow, but state losing market share

Domestic sales of California wine grew 6 percent last year to a record $18.9 billion as consumers continued to buy more -- and more expensive -- offerings from the state's wineries, according to data released Tuesday by the Wine Institute, an industry group.

First, sales of California wines grew more slowly than import sales, meaning that the state's wineries lost market share.

In addition, as the national economy sputtered in the fourth quarter of 2007, the wine sales growth slowed, raising worries for the industry's 2008 prospects.

U.S. wine shoppers spent $30 billion in 2007, making the nation the world's top wine market in terms of total sales. However, per capita wine sales are much higher in other countries such as Italy and France.