Wine propels Napa exports to record high
Date£º 2015-07-29 16:36  Source£º http://napavalleyregister.com    Author: Jennifer Huffman   Translator:
  Napa County exported $343 million dollars¡¯ worth of goods in 2014, an 8 percent increase over 2013 and more than double that of 10 years ago.

 

The lion¡¯s share of those goods ¡ª 69.5 percent ¡ª was likely wine, which the U.S. Chamber of Commerce lumps in with tobacco products in its export report.

 

¡°With Napa¡¯s emphasis on wine production, we are assuming the majority of this change can be attributed to wine exports,¡± said Patsy McGaughy, communications director at Napa Valley Vintners.

 

Except for one year, Napa County exports have been on the rise for the past decade. In 2005 local exports totaled $116 million.

 

Napa County¡¯s other major exports are foods, computer and electronic products and metal and wood products. However, each of those categories only represented from 5 to 10 percent of all exports.

 

¡°Napa Valley is a world-class, internationally renowned wine region and demand for our wines around the globe continues to grow,¡± said McGaughy.

 

The Napa Valley Vintners helps its members with export marketing, she said. ¡°Interest in our international program is stronger today than ever before. We see this news as a positive indicator of the overall health of the Napa Valley wine industry.¡±

 

¡°Obviously, it¡¯s a good thing,¡± said Elizabeth Krauth, director of the U.S. Commercial Service in North Bay, part of the U.S. Department of Commerce.

 

¡°Everybody wants to export,¡± she said. ¡°We don¡¯t have all the consumers here.¡± Companies that don¡¯t export can be in danger of being swamped by their competitors, Krauth cautioned.

 

¡°More and more U.S. businesses are realizing that selling their world-class goods to the potential customers who live outside the United States is critical to their success,¡± said Stefan Selig, undersecretary of commerce for international trade at the U.S. Department of Commerce.

 

As a category, U.S. wine exports ¡ª 90 percent of which are from California ¡ª reached $1.49 billion last year, the second highest dollar value and a 64 percent increase from five years ago, said Linsey Gallagher, vice president of international marketing at the Wine Institute.

 

¡°Despite the strong U.S. dollar and heavily subsidized foreign competition and high tariffs, consumers worldwide are attracted to California wine,¡± she said. ¡°Napa Valley vintners have been active for many years in helping to build international markets for our wines.¡±

 

The Department of Commerce helps companies in Napa compete globally by launching or expanding exporting operations. ¡°These efforts are important to strengthening both the local and national economy and creating well-paying jobs here at home,¡± said Selig.

 

¡°If we are not competing in their market, then we are going to be losing market share,¡± said Krauth. ¡°We need to be overseas and competing with those who are sending wine to our markets.¡±

 

Exporting brings great benefits to communities across the United States; on average, every $1 billion of U.S. goods and services exports supports nearly 5,800 jobs, said Krauth.

 

Exporting can help beat the competition, diversify revenue, and increase a company¡¯s value. ¡°It makes your company more attractive to investment,¡± said Krauth.

 

¡°We try to help companies think through all the hurdles. What are the challenges? How do you get paid?¡± Krauth said of her agency.

 

In many cases,the U.S. Commercial Service refers customers on to the Small Business Administration and other financial institutions that have financing for exporters. ¡°They make that process less risky,¡± said Krauth.

 

Nationally, U.S. metropolitan area goods exports exceeded $1.44 trillion in 2014, up $36 billion from 2013, and accounting for 89 percent of total U.S. goods exports last year. For the first time ever, 161 metropolitan areas tallied merchandise exports worth more than $1 billion in 2014.

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