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The California Wine Industry

Dirty Shit

Austin Porsborg

on 5 May 2011

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Transcript of The California Wine Industry

The History of the California Wine Industry.

Started in the late 1700's
Became a main distributer in the mid 1800's.
The Phylloxera Epidemic of 1863
Influenced a variety of different grapes.

Why California?
Ideal Climate
Ability to produce large quanities of grapes as well as quality.
Substancial amount of Rainfall each year.

A change of Taste?

Over the last couple of years, American's have started purchasing cheaper brands of wine in order to become everyday consumers.
The average bottle of wine sold is about $7 to $10 dollars; however it used to be about $20 California Wine Industry of 2008

Drastic decrease in sales for the more expensive brands of wine.
Questioned whether or not the market was going to reach a balancing point or fall behind.
Higher end wines v.s. Lower end wines. Thirsty Much?

In 2010, the U.S. surpassed France as the worlds largest wine consuming nation, with a total of 330 million cases.

2% Increase from the previous year. The shortage of 2008

The massive increase in lower priced wine sales, caused many California grape growers to go into a state of panic, because they are not able to efficiently supply the overwhelming demand with the desired supply.

Wine market analyst, Jon Fredrikson stated that, "Twelve million cases of foreign bulk wine were shipped to the U.S. in 2008." The California Wine Industry California's Turnout of 2009

Produced a total of 3.7 million tons of grapes, which was the second highest amount ever recorded.
Even though they were able to produce a massive amount of grapes, the wineries were still not meeting the demands of the consumers because they were lacking in the expansion of vineyards.
Many growers became weiry to expand their wineries because in 2007 and 2008 many companies were importing cheap bulk wine from other countries instead of buying California grapes. California's 2010 Outcome

Produced a total of 3.58 million tons of grapes, which is the third highest amount recored in the last decade.
This Substancial amount supply has caused the market to reach a balancing point once again.
California accounted for about 90% of all wine exports in the U.S. in 2010
Increased it total exports 25% more than in 2009. The Future of the Industry

The future of the California wine industry looks promising, considering the fact that both exports and the total amount of revenue that we are taking in is increasing at a substantial rate each year.
The market has once agian established an equlilbrium price, meaning that the consumers and the producers are equally benifited.
Development of new technologies as well as marketing strategies
Continue to expand vineyards in order to meet the high demands of the consumers. California Wineries

California has become one of the leading producers of wine with a total of 3,364 wineries.
Only 7,626 wineries in the entire United States
Account for over 90% of the total wine exported in the U.S. The End!
Full transcript