The value of U.S. wine exports sank nearly 5 percent to $1.5 billion in 2018, reflecting a strong dollar and retaliatory tariffs, according to the Wine Institute, reports CNBC. The weaker exports also follow increased competition from foreign wine producers who are heavily subsidized by their governments and benefiting from free-trade agreements in key markets, according to the organization.
Total export volume dipped more than 1 percent to 375 million liters in 2018, with the volume of exports to China and Japan falling by double-digit percentages. Additionally, wine exports to China fell nearly 25 percent in value last year to $78.7 million and 13 percent in volume compared to 2017.
However, according to the Wine Institute's trade director, the long-term prospects for California wine sales in China remain "very strong." Exports to Hong Kong were up 10 percent to $130 million in value last year and up about 9 percent in volume. Meanwhile, Australian, New Zealand, and South American wines have given the U.S. more competition in the Asian marketplace, although exports of California wine to Vietnam were up 51 percent from a small base.
U.S. wine exports to Canada were up 1 percent in value to $448.7 million and volume was down 11 percent, while exports to the EU were down 15 percent to $469.4 million, while volume was up about 3 percent. Full Story
Related: Wine Institute Moves to Sacramento; E. & J. Gallo Winery Enters into Agreement with Constellation Brands.
from Industry Operations http://bit.ly/2U3p2yp
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