U.S. wines gained again in 1996

U.S. wines scored another strong gain in 1996 in both national and export markets, with table wines up by 6.8% overall and exports up 22% by volume. Those numbers are higher than 1995 gains over 1994.

Shipments of California table wine to all markets were up 6% to 353 million gallons, a record for the third straight year. Estimated total revenues were $5.2 billion.

Eileen Fredrikson of Gomberg, Fredrikson & Associates, the San Francisco firm that tracks wine industry numbers, said 1996 was a frustrating year. "So many wineries were unable to meet demand because of lack of wine," she said. This situation led to a surge in imports, up more than 25% from 1995, according to Fredrikson.

"Even so, it was hard to find an unhappy winery because they were able generally to recover or increase revenue with price increases. Those increases are a real concern," she added.

Fredrikson said the same shortage of supply probably was behind a soft first quarter market, which now seems to be turning around with late spring releases.

"It looks like the market is ready to absorb new California vintages at current prices and 1997 is shaping up as another strong year," she said.

Some of the import gains were due to American vintners bringing off-shore wine into the national market to meet the strong demand. Overall U.S. wine production for all classes stood at 417,605,000 gallons, the highest since 1990. Imports soared to 90,375,000 gallons, the highest since 1987. Total volume of wine entering the U.S. market was 507,980,000 gallons, the highest since 1990.

On the export side, total U.S. wine exports grew to just under 180 million liters, a gain of 22%. Export value grew even more dramatically, to over $325 million, with an average value per liter of $1.82, up 10% over 1995.

The significant fact here is that ten years ago, the total value of U.S. wine exports was only $61 million, less than the $84 million gain in 1996.

The United Kingdom was the leading market in value of exports, scoring an astonishing 36% gain, and second in volume to Canada. Canada scored a strong gain of 42% in value and now is number two in that market.

The strong import market of wine shipped into the U.S. increased 22% in value and has gained 106% in value since 1992. Import volume also grew by 73 million liters, up 75%.

French imports set the pace in value, at $6.77 per liter, compared to a world average of $4.05. France stood second in volume at 96.4 million liters. Italy was the volume leader at 128.8 million liters at a value per liter of $3.18.

In terms of volume, Italy holds 40.1% of the U.S. market, followed by France at 25.8%. No other country exports to the U.S. in double figures.

Because of the strong imports, the U.S. wine balance of trade in both value and volume was also up in 1996 and has doubled since 1992. The balance of trade for fruit juice and concentrate was also unfavorable both in value and volume. The value per liter of U.S. exports is double the value of imports.

The commercial crush of California grapes was up slightly in 1996 to 2.906 million tons, up from 2.828 in 1995, including table and raisin grapes. The winegrape total crush was down slightly from 1995 at 2.172 million tons compared to 2.227 million tons. The crush of red wine grapes at 1.079 million tons was still slightly behind the white wine grape crush of 1.094 million tons.

In the vineyards, the total wine grape acreage (bearing and non-bearing) was 378,488, up from 354,937 in 1995. Red varietals outnumbered whites by 195,497 to 182,991. The leading grape planted by a wide margin was, no surprise here, Chardonnay at 82,279 acres. Zinfandel was second at 46,568, just squeezing out Colombard at 45,264.

World vineyard acreage (based on figures from 1995) was 19,195,000 acres, down by only .4% from 1994. There were decreases in vineyard acreage in Mexico, Austria, Italy, Portugal and France, while Bulgaria, New Zealand, Serbia, Egypt, Iraq Algeria and Australia showed gains.

World grape production was down to 59.6 million tons. A decade ago, production was 66.9 million tons, an average decrease of 11% annually. In wine production, Italy is first with 56,294 million hectoliters (one hl = 26.4 U.S. gallons), followed by France with 55,610 hl. Total world production was 246.4 million hl or 6.46 billion gallons, down 124 million gallons from 1994.

The decline in world wine consumption was finally halted in 1995 when consumption increased from 215.5 million hl in 1994 to 218.5 million hl. There were strong increases in Germany, the United Kingdom, South Africa, Hungary, Japan, Denmark and Ireland but declines in France, Italy, Spain, Argentina, Chile, Bulgaria, Poland and Algeria. In the decade 1986 to 1995, there was an 18% decline in U.S. consumption.

In terms of world figures, the U.S. represents 3.9% of global vineyard acreage, 10% of grape production and 6.4% of the world's wine production; however, 59% of U.S. grapes are raisin and table types.

The U.S. share of the world market is 7.4%. U.S. exports are 2.8% of the total world export market.

THE 54TH ANNUAL STATISTICAL ISSUE

All hands agree that getting the right numbers is one of the toughest jobs in the wine business. Each year, we try to bring you the best available information. If we don't think it's right or if we have questions about the accuracy of some of the numbers we look at, you won't see it here.

This time around we particularly thank Kristi Ivie of IV International, who gave us a big hand on the international side. Jon and Eileen Fredrikson came through, as always, with not only the right numbers but with their insight into the wine market. Joe Rollo of Wine Institute was a major help, not only for this Statistical Issue but for the Import/Export Issue in May.

For the first time this year, we have broken out a section of the country for a closer analysis, the Pacific Northwest. Thanks to Steve Burns and his remarkable staff at the Washington Wine Commission for their help.

This issue just wouldn't have happened without Wines & Vines staffers Debbie Hennessey, Tina Vierra and Renee Skiadas.

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