California Wine Exports Slump Due to Global Recession
For the first time in sixteen years, California wine shipments have dropped overall by 1.6%. The biggest export market for California wines is the United Kingdom which has been hard hit by the recession, according to researcher Gomberg, Fredrikson & Associates.
The global shipment volume of wine made in California dropped by 1.6 percent, to 236 million cases, according to 11 months of data and December estimates from Jon Fredrikson, who heads the wine research firm in Woodside, California.
Shipments to the U.K. plunged 36 percent because of the recession, high taxes, rising duties on imports and the drop in the value of the pound, which boosted California wine prices, Fredrikson said today in a telephone interview. Shipments in the U.S. fell 0.4 percent. Revenue for California wineries, whose biggest product is Chardonnay, probably fell more than shipment volumes as shoppers sought out cheaper bottles, he said.
"Today, frugality is hip," said Fredrikson, who hasn't yet estimated 2009 revenue for the industry. "There's a lot of heartburn going on among industry planners."
The IMF says that the global economy shrank by .8% in 2009. Although exports were down, California wineries sold more wine in the U.S. last year. So, apparently everyone's still drinking wine like crazy, but they're buying local not imported wine.
