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Market Poised for Growth - According to year-end figures recently released by wine industry consultant Jon Fredrikson in the Gomberg-Fredrikson Report, California wine shipments to the U.S. market reached a record high of 417 million gallons in 2004 - a 4% increase over the previous year. The Wine Institute estimates the retail value of the California’s wine shipments to the U.S. in 2004, at $14.3 billion, a 2.3% increase over 2003. California winery shipments to all markets in the U.S. and abroad increased 6% to 494 million gallons.

“Despite intense competition, there has been a steady long-term growth curve for California wine sales. Since 1990, per capita spending has increased from $12 to $33 per adult. In the last three years, the number of regular wine drinkers has increased by six million adults, and the wine market is poised for growth,” said wine business analyst Vic Motto of MKF Group LLP in St. Helena.

There are over 1800 commercial wine labels in the United Sates, a number which has tripled in the last 20 years. California is home to more than 1000 labels, 600 of which are located in the “Wine Country,” of Napa and Sonoma Counties. Approximately 300 wine country labels are traditional brick and mortar wineries, while almost 290 wine labels are “Virtual” wineries – wine growers that have no grape-crushing facilities. Over 50% of the commercial wine labels in the United States sell less than 5,000 cases of wine per year, while the top 25 wine producers ship 90% of California’s wine to markets around the world.