Wine exports jump as vintners aim for China

AP - In this photo taken on Nov. 3, 2011, a visitor tastes a glass of wine during the Hong Kong International Wine and Spirits Fair in Hong Kong. As growth slows in their traditional markets, wine makers from around the world are eager to tap demand in China but industry players say the increased competition and a lack of wine drinking culture mean it won't be easy money. (AP Photo/Vincent Yu)

U.S. wine exports rose 22 percent in value last year, an industry group reported Thursday, indicating continued strength in one of the Modesto area's top enterprises.

Sales reached a record $1.39 billion, and volume was up 6 percent from 2010 to 50.6 million cases, the Wine Institute announced.

About 13 million of those cases came from E.&J. Gallo Winery of Modesto, the world's largest producer.

"Foreign consumers are actively looking for and buying California wines because they like the fruit-forward taste, high quality and affordability," said Susan Hensley, vice president of corporate public relations, in an e-mail. "It is exciting to travel the world and see wine grown and made in the San Joaquin Valley being purchased by consumers in London, Shanghai and beyond."

Substantial wine was produced as well by Bronco Wine Co. near Ceres; The Wine Group, which owns the former Franzia Winery near Ripon; and DFV Wines near Manteca, formerly known as Delicato.

These companies employ several thousand people, a bright spot in a Northern San Joaquin Valley economy still reeling from the housing downturn.

AP - New, lighter 1.5 liter bottles of Cabernet Sauvignon move along a bottling line at Fetzer Vineyards in Hopland, Calif., Thursday, Oct. 16, 2008. Thin is in at Fetzer Vineyards, at least when it comes to wine bottles. The Northern California winery is switching to a lighter weight glass to cut shipping costs and give the environment a break. (AP Photo/Eric Risberg)

Hensley said Gallo's top export markets continue to be the United Kingdom, Canada and Germany, while Africa and China are growing fast. The company's leading export brands are Gallo Family Vineyards, Carlo Rossi and Barefoot, she said.

The Wine Institute reported a 42 percent increase in exports to China and similar gains in other Asian nations.

"We've been laying the groundwork for the better part of 10 years," said Terry Hall of Napa Valley Vintners, the region's trade association. "It's not like you just show up and start selling wine there."

The Chinese economy has doubled in the past seven years, and low-end estimates say there are 1.5 million millionaires.

While brand names are not familiar to most Chinese wine consumers, the Napa name resonates, said Hanson Li of the Hina Group, which has invested in a new Chinese winery and is looking to forge U.S.-Chinese relationships.

"Rewind 30 years ago and nobody in China had money," Li said. "Now it's moving so fast that it's hard to keep up with."

Vintners are working on getting wine beyond the high-end hotels that cater to Westerners and into the stores and markets where locals shop.

China is the biggest foreign consumer of American-grown products, and California products are highly desirable. Almonds, walnuts and pistachios also are enjoying record-breaking sales.

"There's a certain panache that goes with California," said Judy Hirigoyen of the American Pistachio Growers, which saw a 400 percent increase in sales during a two-month promotion that ended last week with the Chinese new year.