US wine industry is turning a corner

After two years of declining wine sales US consumers are starting to spend more on wine and the country is exporting more. Domestic wine sales (of which 90% is made in California) were up 7% in 2010, and the US exported 26% more wine in value terms in 2010 vs 2009. And for the first time, the US consumed more wine than the French - due to its much larger population rather than the amount drunk per capita.

According to the Wine Institute in San Francisco the wine industry has turned a bit of a corner and people are feeling a bit more confident about the economy and going back to what they know. In the US shoppers traded down to wines below $7 during the height of the recession but are now reaching for pricier bottles. Sales of wine in the $7-to-$14 category grew 5% in 2010.