By Jacqueline Bassi
The wine industry in the United States goes back to the 16th Century. However, its history has been a beaten and busted one. The first attempts to produce wine in North America occurred in the eastern part of the country, mainly Florida, North and South Carolina. This wine was made of native grapes and the flavor was far from that of European wine. The taste of this wine was so different and unfriendly to the European palette that they started bringing grape vines from Europe to grow in America. The first efforts to start vitis vinifera, a wild European grape (Vitis sylvestris in some classifications) native over a broad area extending from Spain in the west to the eastern Mediterranean and parts of central Asia, took place in the eastern United States back in the 17th Century. Even so, all efforts to grow vitis vinifera in this region of America failed due to natural conditions. Eastern America was a hostile environment where local pests and fungi, against which the European vines had no immunity, grow up widely.
Nevertheless, the winegrowing efforts continue during the 17th and early 18th Centuries. Vines spread throughout what is now Mexico and the southwest of the United States with the help of Spanish soldiers and missionaries. Growing conditions in the western part of America were much friendlier and the wine production efforts were moved to this part of the America.
The first California wines were made toward the end of the 17th Century by Spanish Monks who cultivated a grape brought from Spain to Mexico and then up into California. This grape, known as the “Mission grape” was well produce in this side of America and although it did not generate the best wine, it became the basis of California wine production for many years.
The first major beat to the wine industry in America happened with the Mexican Independent movement. The mission wine production slowdown and fail when the Spanish were forced out after Mexico (California included) became independent in the 1830s. Mission vineyards were abandoned and almost disappeared. Gladly, by the 1840s California joined the United States as a part of the agreement of the war between the United States and Mexico and California wine not only regained power but it also found a new market, the American soldiers.
In addition, a great boost to the California Wine Industry came from the California Gold Rush (1848 – 1855) that started in January 1848, when gold was discovered at Sutter's Mill, which was a sawmill owned by 19th century pioneer John Sutter. This discovery is responsible for the transformation of California from a dull and unknown place to a prosperous center of activity. Some 300,000 people came to this region from the rest of the United States. This event also attracted tens of thousands of workers from Latin America, Europe, Australia and Asia. Also, California was admitted as a new estate, as a result, an economic explosion began that increased the demand for wine. This economic boom that California was experiencing also demanded higher quality wines. This newly increased demand for wine greatly helped the fast expansion of the wine industry in California.
During the decades of 1850 to 1860 the wine industry accelerated tremendously. Wine production in the United States jumped from about 9,500 hl of wine to 57,000 hl of wine annually. California was the major production state. Even after the end of the Gold Rush period, the productions of wine continue to be vigorous. Europeans learned that their winegrowing skills were valuable. This fact, along with the great growing conditions for wine grapes that California offered, made them to stay and engage in the wine industry.
A tremendous contribution to the history of California Wine industry was the Hungarian Colonel Agoston Haraszthy, today known as the father of modern viniculture in California. Haraszthy came to California in the 1840s and was very well impressed by the great vineyards growing in California. In 1857, Haraszthy purchased land in California’s Sonoma Valley, within the Arroyo Seco Creek watershed, and began planting vineyards. By this time, wine production had already fully shifted to this part of California, which was the Northern part of the estate known as Sonoma Valley. The climate over here was great for the growing of vine grapes. Today, the Sonoma Valley is considered the birthplace of wine Industry in America. Haraszthy enthusiasm for wine production made him write a manual on vineyard management and wine making procedures. This manual persistently recommended the experimentation with different grape varieties in different soils and different parts of the state. In 1861, the State Legislature commissioned him to travel to Europe in order to purchase grapevines of every possible variety. He pioneered a number of viticulture experiments and innovation. He introduced about 300 different grape varieties. Unfortunately, not all grape varieties survived because at that time it was difficult to preserve and handle them.
The second major beat to the wine industry in California happened in 1863. Species of almost all native American grapes were taken to Botanical Gardens in England. These species carry phylloxera, a pest that attacks vine roots and leaves. Phylloxera is native to the Americas and rarely damaged American vines by its feeding. However, to European vines it was devastating. Only two years later, by 1865, phylloxera had spread to vines in Europe and over the next 20 years it destroyed nearly 75 percent of the vines of France. Although the resistant carrier vines were from American, they were native of the east coast, not from the vines growing in California. Then when viticulturist brought back infested vine clippings carrying the insects from Europe to California, California vineyards were infected and devastated as well. After a lot of struggles trying to save vineyards in America and all over the world, Thomas Munson, a horticulturist in Texas, suggested grafting the European vinifera vines onto American riparia rootsocks. This produced phylloxera-resistant plants that yield European varietal grapes and saved vineyards from extinction all over the world. Yet, recovery from phylloxera was slow and endless. It is estimated that more than 10,000 of Napa Valley vineyards were lost by the end of the 1800s.
After the battle with phylloxera , the United States wine industry saw an increase in production and quality, mainly due to the arrival of more than 6 million of immigrants coming from Europe. By the beginning of the 1900s mission wine was almost entirely replaced with higher qualities of wines and American wine industry fully developed. From 1904 to 1908, 85 percent of U.S wine was produced in California. Annual U.S. wine production was 1.55 million hl. By 1913 wine production increased to 2.01 million hl. California wines industry was prosperous. International market started and wines were exported to Australia, Canada, Central America, England, Germany, Mexico and the Orient.
Perhaps, one of the worst battles to the American wine industry came from National Prohibition. The 18th Amendment to the U.S. Constitution, which implemented the Dry Law, was ratified by thirty-six states in January of 1919. The used of beverage alcohol, other than for medicinal or sacramental purposes, was prohibited by law from January 1920 until 1933. Production of wine was permitted only for use in the home of the winemakers. Although some wineries managed to survive by obtaining permits to make wines used for medicinal, sacramental and non-beverage additive purposes, production dropped and amazing 94 percent from 1919 to 1925. By the time of Repeal of Prohibition, that took effect in December 5, 1933, the wine industry in California was almost eradicated. From 1920 to 1930, the years of prohibition, California grape production drop tremendously. During the 1930s wine production remained low.
The impact of prohibition on the commercial wine industry was severe. Almost all 713 of the California commercial wineries that existed in 1920 were closed for more than a decade. The expansion of the market for high-quality commercial wines was cut short. Moreover, prohibition created an emphasis on the production of sweet dessert wines that lasted many years after repeal. By 1933, fortified desert wines were 3 of every 4 gallons produced and shipped in California. It was not until 1968 that table wines sales surpassed fortified or dessert wines. But the major damage caused by prohibition was not wine production or wine quality, those 13 years of abstention greatly impacted American wine consumption patterns. Its profound effects remain until these days.
A rebirth of the wine Industry came with World War II when table wine was introduced to the American service men and the demands for table wine, once again, started to grow strongly. In 1965, Robert Mondavi, an Italian descendent of a family dedicated to wine growing for generations, initiated his own winery in Oakville, California. It was the first new large scale winery to be established in the valley since before prohibition. Following the founding of the Mondavi winery, an increasing number of wineries in the valley started to form and operate. This new wave of wine industrial production was flourishing. Wineries were not only worry of production increase, but also of wine quality. Premium quality wine was booming. This changed the reputation of California wines greatly. However, for some reason, the marketing and sale of this new production of high premium wine was not prosperous enough. Wineries were looking to different approaches to increase their wine markets. Frank Schoonmaker, a very known journalist and wine writer of the 1950s, recommended to label wines using varietals (Pinot Noir, Chardonnay, Riesling) rather than generic names borrowed from famous European regions like Burgundy, Chablis, Rhine, etc. Robert Mondavi was one of the first to label the majority of his wines by varietals names. He not only adopted this practice, but he also promoted it greatly in California. The 1960s and 1970s were successful times to the California wine industry. U.S. wine consumption increased by about 60 percent. Many premium wineries floured in California by the 1970s. Sales gained 13 percent by 1970 marking 265 million gallons. By this time, wineries were producing already premium and ultra–premium varietals of wine, bottled in .75 liter standard bottles. The success was so great that California was victim of him own success. The mid 1970s were characterized by an overflow of the market. The California wine industry suffered a 25% drop in wine prices. Premium wines were found in the market for as low as $ 3 dollars per bottle. Once again, California wine industry suffered a great downward, and several vineyards were force to close.
The next great moment to the American wine industry was marked by the Paris wine tasting of 1976. By this time, California wineries were producing more than excellent wines, but regardless of all marketing efforts, they were little recognized world wide. May 24, 1976, market a glorious day for the California wine industry. A blind tasting organized by Merchant Stephen Spurrier was held in Paris. Very important to the outburst that was coming was the fact that all judges within the panel were French wine experts. To the shock of everyone, three of the top four Chardonnays ranked best by the panel, were California Chardonnays. In addition, the nine judges in the panel also ranked Chateau Montelena, the highest. This was followed by Chalone Vineyard and Spring Mountain Vineyard in the fourth place. Same thing happened with the reds. Stag's Leap Wine Cellars was placed number one, above the most prestigious and very expensive France wines. Probably this event would not had been of a great importance if is not because, to the fortune of California industry, Time magazine writer, George Taber, was in town and attended the event. The results caused commotion, even making the nightly CBS News television broadcast. The event was crucial in the history of American wine. It changed the way California wines were seen and help the expansion of premium wineries into the 1980s and 1990s. It also enhanced the quality of wines at al levels and prices.
Another fortuity event that marked a great moment in California wine history is also attributed to fate. In November of 1991, the influential TV News Magazine “60 Minutes”, aired a report named “The French Paradox”. This report made emphasis on the fact that the French smoked more, ate more fat, but have less heart attacks than Americans, and quoted French scientists as saying that the difference was that the French drank much more red wine. The report was based on an article from Edward Dolnick, which was previously published in a magazine named "In Health" with the same name “The French Paradox” almost a year earlier but somehow unnoticeable. This broadcast gave a boost to the American wine consumption patter. It is said that Americans ran to the stores to buy red wine. By March 1992, E&J Gallo had sold all its reserves of red wine, and was reported to be buying wine in bulk from Bronco Wine Co., then the largest vineyard/land owner in the country. Lambrusco, was one of the largest-selling "red" wines followed by Reunste. These figures, once again, demonstrated Americans preference for sweet and low alcohol wine.
By the end of the 1990s the US had become the fourth-largest wine producer in the world; still American consumption is low compared to the rest of the world. In 1999, Wine consumption in the United States totaled about 21.1 million hl. California was the source of about 72 percent of that wine production.
By the beginning of 2001 the United state economic entered a recession, therefore although wine production continue to grow, increases in wine consumption was very low. Additionally, the events of September 11, of this same year, were another negative bang for the California wine industry. Industrial Reports show that California wine consumption grew only 1 percent in 2001. In 2002, wine consumption increased by 6 percent to 245 million 9-liter cases. In 2003, an additional 5 percent leap on wine consumption was reported. Per capita consumption of wine reached 2.98 gallons per adult, the highest level since 1989. However, 2003 was also marked by an oversupply of some grape varietals. This issue, along with the economic slowdown, significantly lowered wine prices in 2003.
Another add on to these mentioned facts was the increased competition of foreign industries like Australia, which rapidly emerged as the second-largest wine importer to the US, after Italy. Australian wines are very similar to those of US, thus greatly appealing to US consumers. More over, these wines have a great reputation of great quality wines at very reasonable prices. This reputation helped their rapid distribution throughout the US. Year 2004 was definitely hurt by two years of over production and a massive accessibility of very cheap wines. Consumers also move towards lower-priced brands mostly Australian wine.
Despite the ups and downs mentioned above, many regions of California have been growing wine grapes with a steady success. Clearly examples of this pattern are represented by Santa Barbara and Sonoma counties.
Santa Barbara County has become the fastest-growing fine-wine region in California and the United States in recent years. There are lots of new vineyards in the region and the enthusiasm for wine growing is at its highest level. One of the reasons is that vineyards are much less expensive than other vineyards of California. Santa Barbara County is located northwest of Los Angeles; therefore, it gets cool air and fog from the Pacific that creates a large number of microclimate which is a great condition for growing wine grapes.
Inside Santa Barbara County, there are three appellations: Santa Maria Valley, Santa Ynez Valley and Santa Rita Hills. In 2002, the Wine Institute reported about 18,447 acres dedicate to wine grape growing in Santa Barbara. This number doubles the number of acres dedicated to wine grape growing in 1992. Although the region produces a good number of wine varieties, it is well recognized as a fine vineyard for quality Chardonnay and Pinot Noir. Nonetheless, the region is good at producing cool- climate varieties, such as Riesling, and Gewurztraminer. There are now almost 100 wineries in Santa Barbara County. Most of the wineries are small businesses, run by individuals or families. The wine industry in Santa Barbara County grew from nearly nothing in the 1970s to a $ 360 million business by year 2000. More than a million cases of wine are produced annually. The most important aspect of Santa Barbara wines is that they have been recognized as the best in national and international competitions and has been given excellent recognition by wine experts as part of the wine review practice.
Another region worth mentioning is the Sonoma Valley. It has almost the larger number of wineries and grape varieties known in the region. This appellation accounts for one million total acres, and holds over 190 wineries. Sonoma’s winemaking history is one of the oldest in California. It is said that nearly every variety of grape that is known in California can be found in Sonoma. The Sonoma regions of the moment, the Russian River Valley and the extreme Sonoma Coast are known primarily for Burgundian grapes. Sonoma is most recognized by its production of white wines which hold the highest prices of the region. Sonoma also benefits from the red wine highest price in the region, especially for its zinfandel varietals. In 2005, over 230,000 tons of grapes valued at $430 million were produced in the Sonoma Region. Additionally, in the year 2005, there were 254 wineries in Sonoma County. The Sonoma County wine industry estimates its contribution to the local economy to be nearly $8.2 billion, about 40% of the county's contribution to the gross domestic product (GDP).
According to the latest report of the Sonoma County industry series, the local wine industry is in the center of a healthy recovery. The grape crush was robust in 2005. An increase in prices, made 2005 one of the best years for the local wine industry, in almost a decade. The report also points out that the industry remains very positive. Furthermore, 2005 showed a sign of economic recovery in some quarters which was reflected in more people eating at fine restaurants. Selling wine to restaurants constitutes a significant portion of wine sales. Besides, the demand for cheap wine seemed to reach its highest level. The report says that Consumers were moving up market again. Total grape tonnage set a new record in 2005 for both Sonoma County and California. The total 2005 grape tonnage for the Sonoma County increased by 39%. This represents 230,000 tons. The crop barreled surpassed the previous record set in 2000. As well, consumer spending on wine reported an increase of 10%, the fastest pace of growth since 1990. In addition, consumer spending data for the first quarter of 2006 showed that spending continues to grow. This suggests that 2006 wine demand will show to be another excellent year for California wine industry.
Finally, the report prognosticates a favorable outlook for the wine industry. It also points out that wine was named in a recent survey as the most preferred alcoholic beverage by a majority of Americans.
Nevertheless, the winegrowing efforts continue during the 17th and early 18th Centuries. Vines spread throughout what is now Mexico and the southwest of the United States with the help of Spanish soldiers and missionaries. Growing conditions in the western part of America were much friendlier and the wine production efforts were moved to this part of the America.
The first California wines were made toward the end of the 17th Century by Spanish Monks who cultivated a grape brought from Spain to Mexico and then up into California. This grape, known as the “Mission grape” was well produce in this side of America and although it did not generate the best wine, it became the basis of California wine production for many years.
The first major beat to the wine industry in America happened with the Mexican Independent movement. The mission wine production slowdown and fail when the Spanish were forced out after Mexico (California included) became independent in the 1830s. Mission vineyards were abandoned and almost disappeared. Gladly, by the 1840s California joined the United States as a part of the agreement of the war between the United States and Mexico and California wine not only regained power but it also found a new market, the American soldiers.
In addition, a great boost to the California Wine Industry came from the California Gold Rush (1848 – 1855) that started in January 1848, when gold was discovered at Sutter's Mill, which was a sawmill owned by 19th century pioneer John Sutter. This discovery is responsible for the transformation of California from a dull and unknown place to a prosperous center of activity. Some 300,000 people came to this region from the rest of the United States. This event also attracted tens of thousands of workers from Latin America, Europe, Australia and Asia. Also, California was admitted as a new estate, as a result, an economic explosion began that increased the demand for wine. This economic boom that California was experiencing also demanded higher quality wines. This newly increased demand for wine greatly helped the fast expansion of the wine industry in California.
During the decades of 1850 to 1860 the wine industry accelerated tremendously. Wine production in the United States jumped from about 9,500 hl of wine to 57,000 hl of wine annually. California was the major production state. Even after the end of the Gold Rush period, the productions of wine continue to be vigorous. Europeans learned that their winegrowing skills were valuable. This fact, along with the great growing conditions for wine grapes that California offered, made them to stay and engage in the wine industry.
A tremendous contribution to the history of California Wine industry was the Hungarian Colonel Agoston Haraszthy, today known as the father of modern viniculture in California. Haraszthy came to California in the 1840s and was very well impressed by the great vineyards growing in California. In 1857, Haraszthy purchased land in California’s Sonoma Valley, within the Arroyo Seco Creek watershed, and began planting vineyards. By this time, wine production had already fully shifted to this part of California, which was the Northern part of the estate known as Sonoma Valley. The climate over here was great for the growing of vine grapes. Today, the Sonoma Valley is considered the birthplace of wine Industry in America. Haraszthy enthusiasm for wine production made him write a manual on vineyard management and wine making procedures. This manual persistently recommended the experimentation with different grape varieties in different soils and different parts of the state. In 1861, the State Legislature commissioned him to travel to Europe in order to purchase grapevines of every possible variety. He pioneered a number of viticulture experiments and innovation. He introduced about 300 different grape varieties. Unfortunately, not all grape varieties survived because at that time it was difficult to preserve and handle them.
The second major beat to the wine industry in California happened in 1863. Species of almost all native American grapes were taken to Botanical Gardens in England. These species carry phylloxera, a pest that attacks vine roots and leaves. Phylloxera is native to the Americas and rarely damaged American vines by its feeding. However, to European vines it was devastating. Only two years later, by 1865, phylloxera had spread to vines in Europe and over the next 20 years it destroyed nearly 75 percent of the vines of France. Although the resistant carrier vines were from American, they were native of the east coast, not from the vines growing in California. Then when viticulturist brought back infested vine clippings carrying the insects from Europe to California, California vineyards were infected and devastated as well. After a lot of struggles trying to save vineyards in America and all over the world, Thomas Munson, a horticulturist in Texas, suggested grafting the European vinifera vines onto American riparia rootsocks. This produced phylloxera-resistant plants that yield European varietal grapes and saved vineyards from extinction all over the world. Yet, recovery from phylloxera was slow and endless. It is estimated that more than 10,000 of Napa Valley vineyards were lost by the end of the 1800s.
After the battle with phylloxera , the United States wine industry saw an increase in production and quality, mainly due to the arrival of more than 6 million of immigrants coming from Europe. By the beginning of the 1900s mission wine was almost entirely replaced with higher qualities of wines and American wine industry fully developed. From 1904 to 1908, 85 percent of U.S wine was produced in California. Annual U.S. wine production was 1.55 million hl. By 1913 wine production increased to 2.01 million hl. California wines industry was prosperous. International market started and wines were exported to Australia, Canada, Central America, England, Germany, Mexico and the Orient.
Perhaps, one of the worst battles to the American wine industry came from National Prohibition. The 18th Amendment to the U.S. Constitution, which implemented the Dry Law, was ratified by thirty-six states in January of 1919. The used of beverage alcohol, other than for medicinal or sacramental purposes, was prohibited by law from January 1920 until 1933. Production of wine was permitted only for use in the home of the winemakers. Although some wineries managed to survive by obtaining permits to make wines used for medicinal, sacramental and non-beverage additive purposes, production dropped and amazing 94 percent from 1919 to 1925. By the time of Repeal of Prohibition, that took effect in December 5, 1933, the wine industry in California was almost eradicated. From 1920 to 1930, the years of prohibition, California grape production drop tremendously. During the 1930s wine production remained low.
The impact of prohibition on the commercial wine industry was severe. Almost all 713 of the California commercial wineries that existed in 1920 were closed for more than a decade. The expansion of the market for high-quality commercial wines was cut short. Moreover, prohibition created an emphasis on the production of sweet dessert wines that lasted many years after repeal. By 1933, fortified desert wines were 3 of every 4 gallons produced and shipped in California. It was not until 1968 that table wines sales surpassed fortified or dessert wines. But the major damage caused by prohibition was not wine production or wine quality, those 13 years of abstention greatly impacted American wine consumption patterns. Its profound effects remain until these days.
A rebirth of the wine Industry came with World War II when table wine was introduced to the American service men and the demands for table wine, once again, started to grow strongly. In 1965, Robert Mondavi, an Italian descendent of a family dedicated to wine growing for generations, initiated his own winery in Oakville, California. It was the first new large scale winery to be established in the valley since before prohibition. Following the founding of the Mondavi winery, an increasing number of wineries in the valley started to form and operate. This new wave of wine industrial production was flourishing. Wineries were not only worry of production increase, but also of wine quality. Premium quality wine was booming. This changed the reputation of California wines greatly. However, for some reason, the marketing and sale of this new production of high premium wine was not prosperous enough. Wineries were looking to different approaches to increase their wine markets. Frank Schoonmaker, a very known journalist and wine writer of the 1950s, recommended to label wines using varietals (Pinot Noir, Chardonnay, Riesling) rather than generic names borrowed from famous European regions like Burgundy, Chablis, Rhine, etc. Robert Mondavi was one of the first to label the majority of his wines by varietals names. He not only adopted this practice, but he also promoted it greatly in California. The 1960s and 1970s were successful times to the California wine industry. U.S. wine consumption increased by about 60 percent. Many premium wineries floured in California by the 1970s. Sales gained 13 percent by 1970 marking 265 million gallons. By this time, wineries were producing already premium and ultra–premium varietals of wine, bottled in .75 liter standard bottles. The success was so great that California was victim of him own success. The mid 1970s were characterized by an overflow of the market. The California wine industry suffered a 25% drop in wine prices. Premium wines were found in the market for as low as $ 3 dollars per bottle. Once again, California wine industry suffered a great downward, and several vineyards were force to close.
The next great moment to the American wine industry was marked by the Paris wine tasting of 1976. By this time, California wineries were producing more than excellent wines, but regardless of all marketing efforts, they were little recognized world wide. May 24, 1976, market a glorious day for the California wine industry. A blind tasting organized by Merchant Stephen Spurrier was held in Paris. Very important to the outburst that was coming was the fact that all judges within the panel were French wine experts. To the shock of everyone, three of the top four Chardonnays ranked best by the panel, were California Chardonnays. In addition, the nine judges in the panel also ranked Chateau Montelena, the highest. This was followed by Chalone Vineyard and Spring Mountain Vineyard in the fourth place. Same thing happened with the reds. Stag's Leap Wine Cellars was placed number one, above the most prestigious and very expensive France wines. Probably this event would not had been of a great importance if is not because, to the fortune of California industry, Time magazine writer, George Taber, was in town and attended the event. The results caused commotion, even making the nightly CBS News television broadcast. The event was crucial in the history of American wine. It changed the way California wines were seen and help the expansion of premium wineries into the 1980s and 1990s. It also enhanced the quality of wines at al levels and prices.
Another fortuity event that marked a great moment in California wine history is also attributed to fate. In November of 1991, the influential TV News Magazine “60 Minutes”, aired a report named “The French Paradox”. This report made emphasis on the fact that the French smoked more, ate more fat, but have less heart attacks than Americans, and quoted French scientists as saying that the difference was that the French drank much more red wine. The report was based on an article from Edward Dolnick, which was previously published in a magazine named "In Health" with the same name “The French Paradox” almost a year earlier but somehow unnoticeable. This broadcast gave a boost to the American wine consumption patter. It is said that Americans ran to the stores to buy red wine. By March 1992, E&J Gallo had sold all its reserves of red wine, and was reported to be buying wine in bulk from Bronco Wine Co., then the largest vineyard/land owner in the country. Lambrusco, was one of the largest-selling "red" wines followed by Reunste. These figures, once again, demonstrated Americans preference for sweet and low alcohol wine.
By the end of the 1990s the US had become the fourth-largest wine producer in the world; still American consumption is low compared to the rest of the world. In 1999, Wine consumption in the United States totaled about 21.1 million hl. California was the source of about 72 percent of that wine production.
By the beginning of 2001 the United state economic entered a recession, therefore although wine production continue to grow, increases in wine consumption was very low. Additionally, the events of September 11, of this same year, were another negative bang for the California wine industry. Industrial Reports show that California wine consumption grew only 1 percent in 2001. In 2002, wine consumption increased by 6 percent to 245 million 9-liter cases. In 2003, an additional 5 percent leap on wine consumption was reported. Per capita consumption of wine reached 2.98 gallons per adult, the highest level since 1989. However, 2003 was also marked by an oversupply of some grape varietals. This issue, along with the economic slowdown, significantly lowered wine prices in 2003.
Another add on to these mentioned facts was the increased competition of foreign industries like Australia, which rapidly emerged as the second-largest wine importer to the US, after Italy. Australian wines are very similar to those of US, thus greatly appealing to US consumers. More over, these wines have a great reputation of great quality wines at very reasonable prices. This reputation helped their rapid distribution throughout the US. Year 2004 was definitely hurt by two years of over production and a massive accessibility of very cheap wines. Consumers also move towards lower-priced brands mostly Australian wine.
Despite the ups and downs mentioned above, many regions of California have been growing wine grapes with a steady success. Clearly examples of this pattern are represented by Santa Barbara and Sonoma counties.
Santa Barbara County has become the fastest-growing fine-wine region in California and the United States in recent years. There are lots of new vineyards in the region and the enthusiasm for wine growing is at its highest level. One of the reasons is that vineyards are much less expensive than other vineyards of California. Santa Barbara County is located northwest of Los Angeles; therefore, it gets cool air and fog from the Pacific that creates a large number of microclimate which is a great condition for growing wine grapes.
Inside Santa Barbara County, there are three appellations: Santa Maria Valley, Santa Ynez Valley and Santa Rita Hills. In 2002, the Wine Institute reported about 18,447 acres dedicate to wine grape growing in Santa Barbara. This number doubles the number of acres dedicated to wine grape growing in 1992. Although the region produces a good number of wine varieties, it is well recognized as a fine vineyard for quality Chardonnay and Pinot Noir. Nonetheless, the region is good at producing cool- climate varieties, such as Riesling, and Gewurztraminer. There are now almost 100 wineries in Santa Barbara County. Most of the wineries are small businesses, run by individuals or families. The wine industry in Santa Barbara County grew from nearly nothing in the 1970s to a $ 360 million business by year 2000. More than a million cases of wine are produced annually. The most important aspect of Santa Barbara wines is that they have been recognized as the best in national and international competitions and has been given excellent recognition by wine experts as part of the wine review practice.
Another region worth mentioning is the Sonoma Valley. It has almost the larger number of wineries and grape varieties known in the region. This appellation accounts for one million total acres, and holds over 190 wineries. Sonoma’s winemaking history is one of the oldest in California. It is said that nearly every variety of grape that is known in California can be found in Sonoma. The Sonoma regions of the moment, the Russian River Valley and the extreme Sonoma Coast are known primarily for Burgundian grapes. Sonoma is most recognized by its production of white wines which hold the highest prices of the region. Sonoma also benefits from the red wine highest price in the region, especially for its zinfandel varietals. In 2005, over 230,000 tons of grapes valued at $430 million were produced in the Sonoma Region. Additionally, in the year 2005, there were 254 wineries in Sonoma County. The Sonoma County wine industry estimates its contribution to the local economy to be nearly $8.2 billion, about 40% of the county's contribution to the gross domestic product (GDP).
According to the latest report of the Sonoma County industry series, the local wine industry is in the center of a healthy recovery. The grape crush was robust in 2005. An increase in prices, made 2005 one of the best years for the local wine industry, in almost a decade. The report also points out that the industry remains very positive. Furthermore, 2005 showed a sign of economic recovery in some quarters which was reflected in more people eating at fine restaurants. Selling wine to restaurants constitutes a significant portion of wine sales. Besides, the demand for cheap wine seemed to reach its highest level. The report says that Consumers were moving up market again. Total grape tonnage set a new record in 2005 for both Sonoma County and California. The total 2005 grape tonnage for the Sonoma County increased by 39%. This represents 230,000 tons. The crop barreled surpassed the previous record set in 2000. As well, consumer spending on wine reported an increase of 10%, the fastest pace of growth since 1990. In addition, consumer spending data for the first quarter of 2006 showed that spending continues to grow. This suggests that 2006 wine demand will show to be another excellent year for California wine industry.
Finally, the report prognosticates a favorable outlook for the wine industry. It also points out that wine was named in a recent survey as the most preferred alcoholic beverage by a majority of Americans.
