West

U.S. wine exports set a new record with $1.39 billion in winery revenues in 2011.

That's an increase of 21.7 percent compared with 2010, according to a news release.

Volume shipments were up 5.8 percent to 455.87 million liters or 50.6 million 9-liter cases.

California accounts for 90 percent of U.S. wine exports, according to the San Francisco-based Wine Institute.

Wine Institute President and chief executive officer Bobby Koch credits the increased focus on the Chinese market during the past year for part of the export success.

Nevertheless, he says the industry needs to continuing working to eliminate trade barriers, particularly in the Pacific Rim.

Thirty-four percent of U.S. wine exports were shipped to the 27-country European Union, accounting for $478 million in revenues or a 10 percent increase.

Volume shipments were up only 1.4 percent or 28 million cases.

Other top export markets were Canada, Hong King, Japan and China.

But Paul Molleman, institute trade deirector for continental Europe, cautions that the 10 percent change in the Euro-dollar exchange rate could have an effect on European exports.