California wine making a worldwide impact, consumers choosing cheaper bottles

We report on the recession every night, but one local industry has some good news to report.

The Wine Institute says California wine is being consumed more around the world.

The institute says 90 percent of U.S. wine exports come from California. And in 2008, wine sales in the U.S. were up two percent from 2007.

It seems the way people are buying wine is changing. Folks are buying less expensive bottles at a quicker pace, and bottles over $30 seem to be staying on the shelves longer.

"A totally different taste than what I've had before," said Teresa Willingham, visiting San Luis Obispo County from the home of the Masters, Augusta, Georgia. And while arguably the biggest golf tournament in America is about to be played in her backyard, she's enjoying the scenery of the Central Coast and a glass of California wine.

"We've been on cruises and had different wines, and I've just been to several different wineries and this is very, this is definitely the best," said Willingham.

Teresa isn't alone in her appreciation of the California grape. Currently, nine out of 10 bottles exported from the U.S. are coming from California. It's something Edna Valley winemaker Harry Hansen says makes sense, especially when the state offers so many varietals at so many prices.

"If the consumer is looking for wines under $10 a bottle, then we're going to provide it. Having said that, California is also known for making high quality wines at other price points," said Hansen.

Hansen admits the recession is hurting sales in the higher price points, as recent studies show today's consumers are reaching for bottles that cost them $5 to $10.

"They're very drinkable. They've got great flavors," Hansen said, referring to less expensive bottles.

"Very good, very smooth, no afterbite," Willingham added.

While Americans drank more wine, Europeans drank fewer bottles in 2008, making it the first time ever that the U.S. has outpaced Europe in vino consumption.