U.S. wine consumption expanded solidly during the first six months of 2011. Combined shipments of California and imported wines advanced by 8.8 million cases, up 6%, to over 155 million cases. California's largest producers captured the lion’s share of this sizable volume gain, but many other wineries in all market segments also reported strong volume expansion. In fact, over two-thirds of all reporting California wineries posted shipment gains. Moreover, combined shipments from fifteen leading coastal warehouses, representing the combined volumes of a multitude of small coastal producers, expanded 10%.

Strong shipments to both the U.S. and export markets lifted worldwide California wine volume by 7% through June. This included domestic market growth of 6.4 million cases, up 7%, and export gains of 1.6 million cases, also up 7%.

Under difficult economic conditions, including high unemployment, low consumer confidence, and austere consumer spending trends, this year’s solid market growth was quite remarkable. It appears that the staggering diversity of wine choices and many exciting new wine offerings now available on the American market, often selling at discounted prices, are boosting wine consumption and attracting new consumers.

Strong first-half results suggest that wine consumption growth has moved up into a higher gear in spite of economic uncertainties. American consumers are drinking more wine and a greater diversity of wine types than ever before. Emerging demographic trends favor increased consumption growth especially from both aging consumers (aging baby boomers) and young consumers (echo boomers – the children of baby boomers) and this bodes well for continued U.S. wine market expansion.