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US Wine Industry Part 1 of 7
1. Wine Industry
An overview of the industry; from history, to laws, market and investor
outlooks in the U.S.
2. Page Title: Page Numbers:
History of Wine in the U.S. 5
U.S. Profile 9
Federal Laws & Regulations 16
State Regulations 30
Trading Landscape 46
Consumer Profile 57
Wine Varieties in the U.S. 64
Pricing 93
Page Title: Page Numbers:
Company Profile 101
Top 5 Wine Producing States 109
Wine Regions 132
California Wine Regions 191
Market Overview 219
Investor Outlook 235
Future Potential 250
Work Cited 256
3. All About Wine:
Facts-
Wine is a drink that suits a large variety of occasions
It can be served as an aperitif (to stimulate the appetite)
It is an ideal accompaniment to a three-course-meal
Great for sipping and socializing with friends
Compiled by author from statista.com
4. All About Wine:
Largest Wine Cellar in the World-
Bern’s Steakhouse Tampa:
More than 6,800 unique wine labels
5,500 Red Wines
1000 White wines
200 Sparkling Wines
300 Madeira, Ports and Sherries (by glass)
200 Table wines (by glass)
Compiled by author from bernssteakhouse.com
5. History of Wine In The U.S. :
A look at how wine came to be in the U.S.
6. History of Wine:
Rise of American Fine Wine-
40 years ago, fine wine was
generally thought to be for the
elite
The general public found it
expensive and anti-populist
1933: Prohibition is repealed and
of the nearly 2,500 U.S. wineries in
existence, less than 100 remained
1965:
Robert Mondavi breaks away from
the Charles Krug estate and ushers
in the modern era of wine making
1976:
In the famous Judgment of Paris,
attention was brought to California
A panel of French wine experts
scored several U.S. wines higher
than their French Bordeaux and
Burgundy
7. History of Wine:
American Fine Wine - 2011
All fifty U.S. States boast a commercial wine industry
Consumption of domestic wine outweighs imports two to one
The rise of the American fine-wine industry spurred a broader acceptance of
wine in the U.S.
9. U.S. Profile:
Top Restaurant Wines-
Top U.S. Restaurant Wines Percent of Sales Volume
Beringer Vineyards 1.76%
William Wycliff 1.68%
Foxhorn Vineyards 1.55%
Glenn Ellen 1.42%
Corbett Canyon 1.29%
Vendange 1.28%
La Terre 1.20%
Sycamore Lane 1.15%
Paul Masson 1.11%
Compiled by author from staticbrain.com
10. U.S. Profile:
Grape Facts-
Grapes are the highest value fruit
crop in the U.S.
Valued at close to $5 billion
32% of the value of all non-citrus
fruit in the U.S.
Sixth largest fruit crop in the U.S.
Nearly one million acres of grape
bearing land (wine, table grapes,
and raisins)
The U.S. produced over 7,000,000
tons of grapes in 2013
Images from google.com
11. U.S. Profile:
Wine Facts-
More than 350,000,000 gallons of
wine were produced from January
to July 2014
U.S. accounts for 10% of the
world’s grape production and 5% of
the grape acreage
The U.S. is the 4th largest wine
producing country
The U.S. leads world in
consumption with sales of close to
$35 billion
12. U.S. Profile:
Wine Consumption-
Wine Statistics Data
Number of cases of wine consumed in the U.S. annually $330 Million
Average amount of wine consumed annually per U.S. adult 267 ounces
U.S. retail revenue from wine sales in 2010 $30 Billion
California market share of U.S. wine sales 61%
California vineyard sales revenue in 2010 $18.5 Billion
California worldwide wine case shipments in 2010 $241.8 Million
Compiled by author from staticbrain.com
13. Federal Laws & Regulations:
An overview of the main regulator in the U.S. laws, bonds and taxes in the
federal landscape.
14. Laws & Regulations:
Operations Regulated By TTB-
Bonded Wine
Premises
Premises
established for
Taxpaid Wine
Operations
Alternations Importing Wine
Wholesaling
Wine
Using wine in
distilled spirits
products for
flavoring
and/or Brandy
production
Wine Industry Operations Regulated by TTB:
Compiled by author from http://viticulture.hort.iastate.edu/
15. Laws & Regulations:
Federal Laws- FAA Act
Federal Alcohol Administration Act Title 27
USC:
The FAA Act was passed at the end of
Prohibition
Made to protect the newly legalized
alcoholic beverage industry from the
following:
Unfair trade practices
Consumers from deceptive labeling and
advertising
Federal Alcohol Administration Act Title 27
USC:
Anyone who wants to wholesale, import or
produce and sell alcoholic beverages
must:
Qualify for a permit under the FAA act
Obtain prior approval for labels
16. Laws & Regulations:
Classification of Wine Under FAA-
There are 9 Classes of Wine under the FAA:
Grape Wine
Sparkling Grape Wine
Carbonated Grape Wine
Citrus Wine
Fruit Wine
Wine from other Agricultural Products
Aperitif or other than standard wine
Imitation and substandard wine
Retsina Wine
Compiled by author from http://viticulture.hort.iastate.edu/
17. Laws & Regulations:
Federal Laws- IRC
Internal Revenue Code Title 26 USC:
The IRC sets the tax rates
Authorizes TTB to protect the
revenue
The revenue is the income from taxes
The IRC oversees the wine so that
a tax is paid
Internal Revenue Code Title 26 USC:
TTB protects the revenue making
sure you:
Have adequate equipment
Have security to prevent loss or
theft of wine
Are to register and
Have bonded your plant and
maintain records
File reports
18. Laws & Regulations:
Classification of Wine Under IRC-
Other than Standard Wine:
High fermentation
wine
Heavy bodied
blending wine
Blending Sherry
Wine/Wine Products
not for beverage use
Distilling Material Vinegar Stock
Special Natural Wine:
Flavored wine made on bonded premises from a base of natural wine A formula is needed for these wines
Natural Wine:
Includes grape, fruit, specially sweetened natural wine, and
effervescent
No formula is required to produce these wines
Agricultural Wine:
May be produced on bonded wine premises from suitable agricultural
products other than the juice of fruit (raisins, honey)
A formula is needed for these wines
Compiled by author from http://viticulture.hort.iastate.edu/
19. Laws & Regulations:
Taxes-
What is the Tax on Wine? 26 U.S.C. 5041 (b):
Amount of Alcohol: Tax Amount:
½ of 1% but not over 14% Alcohol $1.07 per Gallon
More than 14% but not over 21% Alcohol $1.57 per Gallon
More than 21% but not over 24% Alcohol $3.15 per Gallon
Artificially Carbonated $3.30 per Gallon
Sparkling Wine $3.40 per Gallon
Hard Cider $.226 per Gallon
Compiled by author from http://viticulture.hort.iastate.edu/
20. Laws & Regulations:
Taxes- Tax Classes
Wine Tax Classes:
Alcohol Content: Large Producer Rate: Small Producer Rate:
14% or Below $1.07 $0.17
Over 14% But Not Over 21% $1.57 $0.67
Over 21% But Not Over 24% $3.15 $2.25
Artificially Carbonated $3.30 $2.40
Sparkling Wine $3.40 $3.40
Compiled by author from http://viticulture.hort.iastate.edu/
21. Laws & Regulations:
Taxes-
Tax Classes:
Large Producer - Produces over
250,000 gallons of wine per year
Small Producer - Produces less than
150,000 gallons of wine per year
Ranges:
The Highest state imposed wine
tax is $3.56- Kentucky
Lowest state imposed wine tax is
$0.11- Louisiana
Median wine tax in the U.S. is
$0.72
22. Contact Us for the Full Presentation:
Mediacontact USA Inc.
13575 58TH Street North #160
Clearwater, Fl. 33760
T: 727 538 4112
E: contact@mcusa.co
www.mediacontactusa.com
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