Wine exports up 25% over '09

Modesto-area wineries received much of $1.14B

U.S. wine exports reached a record $1.14 billion last year, a 25.6 percent jump over 2009, an industry group reported.

Much of the income poured into the Modesto area's large wineries, which ship their low- and midpriced products to dozens of countries.

"The economy is recovering around the world, and that's matched up with some of the new brands we have launched the last couple of years," Chris Indelicato, chief executive officer at DFV Wines near Manteca, said Wednesday.

The company, formerly Delicato Family Vineyards, sells bottles mainly in the $5 to $10 range. Its brands include Gnarly Head, Twisted, Irony, 337 and Brazin.

Other major players are E.&J. Gallo Winery in Modesto, Bronco Wine Co. near Ceres and The Wine Group near Ripon. Together, they employ several thousand people, whose paychecks ripple out in a local economy still reeling from the housing downturn and related troubles.

The export report came from the Wine Institute in San Francisco. It represents California producers, which account for 90 percent of the nation's wine exports.

Last year's income broke the record of $1.008 billion set in 2008 and was a little more than twice the income in 2000.

The 2010 export volume was 112.4 million gallons, the equivalent of 567.3 million standard bottles, although some of the wine was shipped in bulk.

The volume was well off the record 129.7 million gallons in 2008, but the $10.19 average income per gallon was the highest ever.

The Wine Institute said marketing campaigns and efforts to reduce trade barriers have helped boost exports.

"With close to 20 percent of California's wine production being sold in other countries, exports represent an important part of our industry's success," said Tom LaFaille, director of international trade policy.

Reduced overseas supplies helped

Indelicato said exports were aided by reduced supplies from Australia, Chile, France and other big producers. Exports could remain strong in the next few years if the dollar continues to be weak, which makes U.S. products more affordable around the world, he said.

The 2010 wine grape harvest in California was the third-largest at 3.58 million tons, a federal report said last week. Indelicato said another bumper crop this year would help meet the demand while making money for growers.

The report listed key destinations of U.S. wine last year:

• European Union: $435 million

• Canada: $308 million

• Hong Kong: $116 million

• Japan: $76 million

• China: $45 million.

Bobby Koch, president and chief executive officer at the Wine Institute, said the report "indicates that our goal of $2 billion in wine export revenues by 2020 is achievable."