California wine sales have hit all-time record high sales and shipment figures in 2016. The industry’s domestic sales in America reportedly grew by 4.6% to a whopping value of US$34.1 billion throughout 2016.
Adding to that is the 2% increase in shipment, with 238 million cases of the golden state’s wines shipped across America in 2016 alone. Considering that shipment figures stood at just 191 million cases in 2006, industry pundits are hailing this growth over the decade as significant.
Experts are crediting the growing trend for drinking wine amongst the American population, most especially amongst millennials between the ages of 21 and 38 years old. Adding to that are the crowded sales channels and fierce competition amongst retailers.
On top of all that is the move by California wineries towards brand premiumisation. In America alone, California wines priced at US$10 and higher are showing growth, accounting for 19% of the volume and 40% value. California wines priced under US$10 are flat or down, but still holds 81% share of volumes and 60% of revenues.
Overseas, California wine reportedly makes up for 90% of all American wines exports which also reached a record high figure of $1.62 billion in winery revenues. That represents a 78% growth in exports in a span of a decade.
Besides Europe and the Americas, California wine is enjoying healthy sales across Asia. Notable markets include Hong Kong (US$99 million), Japan (US$87 million), China (US$82 million), South Korea (US$23 million), Singapore (US$14 million) and Philippines (US$13 million).
(Main image credit: discovercaliforniawines.com)
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An avid boozer and word-stringer who's paid to drink and write for the revamped Boozeat Blog 2.0
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