Usa wine exports up 6% in 2008

The Wine Institute reports U.S. wine exports were up 6% by value in 2008, passing the $1 billion mark for the first time.

The San Francisco-based institute says winery exports also increased 8% by volume, to nearly 130 million gallons or 55 million cases.

Institute president Robert P. Koch said the wineries "have been able to adjust and remain competitive despite changes in U.S. dollar exchange rates and during strong and weak economic conditions."

Nearly half of U.S. wine exports are shipped to the European Union, accounting for $486 million. Volume shipments to the European Union increased 9 percent in 2008 compared to 2007, and sales by value grew at a slightly lower rate of 2 percent due to the continuing strategy of producers exporting bulk wine for bottling overseas to save the costs of shipping bottles and other packaging. The finished wines are then shipped to their final destinations in neighboring countries.

The next leading markets were: Canada, $260 million; Japan, $61 million; Hong Kong, $26 million; and Mexico, $23 million.

Growth in other markets include: China, up 34 percent to $22 million; Austria up 31 percent to $14 million; and Singapore, up 26 percent to $11 million.