Sales of California Wines Reach All-Time High

Sales of California wines surged last year by 11% to an all-time high of $5.9 billion, according to Gomberg, Fredrikson & Associates, a research and consulting firm in San Francisco. Volume sales of California wines grew just 1% last year, reaching an estimated 410 million gallons. Fueling the growth have been the strong economy, changing consumer attitudes, high-quality vintages and booming export growth, said Jon Fredrikson, a principal in the firm. Positive news about the health benefits of consuming moderate amounts of wine has also contributed. However, Fredrikson noted, rising prices for wines, spurred by a grape shortage, have dampened demand. Barring weather damage, this year’s harvest promises to be large, given the recent plantings. That could send prices into “the lower reaches� and spark more demand, Fredrikson said. “Four-to-five-dollar Merlot is really going to fly off the shelf,� he added. Cabernet Sauvignon and Sauvignon Blanc, he suggested, will continue to be in short supply.