California is experiencing a wine boom that is not seen in any other state, according to an industry analyst.
California’s Wine Institute released its fourth-quarter report on Tuesday, showing a surge in sales of nearly $1 billion in just the past 12 months, and the state is inching closer to a $3 billion wine tax.
The state’s wine sector is growing at a faster pace than any other in the nation.
In fact, the industry has increased sales by 7.6 percent annually since 2007, the year the state imposed a statewide wine tax on all wine purchases.
The industry also reported record sales in 2018, when wine sales were $7 billion higher than in 2016.
“California is poised to be a leading wine exporter, with a $1.4 billion export potential in 2019,” said Steve Kocurek, Wine Institute’s vice president of research and analysis.
The boom is especially impressive given that California has historically been a wine-heavy state.
In 2016, the state’s annual wine exports totaled $1,700 million, according the state Department of Revenue.
In 2017, California was the top wine producer in the country, producing $3.2 billion worth of wine.
But that year, California also produced more than $3 million in wine sales during the holiday season.
The industry is also seeing a surge of domestic demand.
In 2018, the nation’s wine consumption rose by almost 5 million gallons, according industry data.