California Wine Sales Are Up, But Tariffs Could Change That

The news from the Wine Institute was very good with sales of wines from California up in volume and value. However, a ruling by the World Trade Organization (WTO) could put a crimp in future growth for the Golden State.

According to the Wine Institutes’ figures, California wine shipments in the United States were up 4.4% in 2014. The value of those shipments is estimated to have been $24.6 billion, which is up 6.7% from 2013. Also, domestic and international combined wine sales improved 3.7% year over year.

Though drought has made life tougher for California winemakers over the past few years, Wine Institute President Bobby Koch said:

“California has had three excellent harvests in both quantity and quality in 2012, 2013 and 2014 and these vintages are receiving global recognition.”

Oh no, Canada

Still, not all the news is good in California. The WTO sustained a ruling regarding meat-labeling rules complaint by Canada that may likely lead to a trade-war – at least in North America. The ruling that was upheld, states that both Canada and Mexico can add duty tariffs to products including wine. Exports of vino in California would suffer, so the U.S. wine industry is asking Congress to intervene.

Ironically, California wine sales topped the one billion dollar mark this past year in exports to Canada, making them the single biggest consumer of U.S. wine. However, those sales could see a tumble if the presumed taxes from Canada increase substantially.

NOTE: Congress has made a move to help winemakers in U.S. Click here for more.

Cheers,

Daryle W. Hier

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