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Business News

Wine sales in U.S. reach new record in 2012

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Written by: Editor
Published: 17 April 2013

Wine sales in the U.S. from all production sources – California, other U.S. states and foreign countries – increased 2 percent from the previous year to a new record of 360.1 million 9-liter cases with an estimated retail value of $34.6 billion, according to wine industry consultant Jon Fredrikson of Gomberg, Fredrikson & Associates in Woodside.

Of the total, almost two-thirds or 207.7 million cases of California wine account for a 58 percent share of U.S. wine sales with an estimated retail value of $22 billion.

Including exports, 2012 California wine shipments to all markets in the U.S. and abroad reached 250.2 million cases.

“The U.S. is the largest wine market in the world with 19 consecutive years of volume growth,” said Wine Institute President and Chief Executive Officer Robert P. (Bobby) Koch. “Competition for retail shelf space and consumer attention is intense, so California’s high quality, record winegrape harvest in 2012 could not have come at a better time. California vintners continue to respond to growing worldwide demand with a wide array of outstanding wines from regions throughout the state and Wine Institute is supporting the effort by opening markets and eliminating trade barriers in the U.S. and abroad.”

“Wine shipments to the U.S. market climbed by nearly 50 percent since 2001 and it is likely that American consumption will continue to expand over the next decade as wine continues to gain traction among American adult consumers,” said Fredrikson. “The amazing diversity of choices and exciting new offerings are attracting new consumers and boosting consumption. Among the key growth drivers are favorable demographics, a widening consumer base and increasing points of distribution in both on- and off-sale outlets. For example, Starbucks is now serving wine in some key markets and Amazon.com and Facebook Gifts both sell wine online.”

Varietal trends in chain retail outlets

Wine sales in U.S. food stores and other off-premise measured channels from all domestic and foreign producers grew 2 percent by volume and 6 percent by value, according to Nielsen, a global provider of information and insights into what consumers buy.

California wines grew faster than the overall category by a full percentage point. By varietal in the table wine category, Chardonnay remained the most popular varietal with a 21 percent share of volume, followed by Cabernet Sauvignon, 12 percent volume share; Merlot, 9 percent share, and Pinot Grigio/Gris, 8 percent share.

The largest percentage gains were Muscat/Moscato, up 33 percent in volume with 6 percent market share, and domestic red blends/sweet red wines, up 22 percent in volume with 5 percent share of market. Also of note was Malbec, up 21 percent by volume with a 1 percent share.

“Consumers have more access to wine throughout the country with wine-selling locations expanding by well over 50,000 from five years ago. Off-premise retail outlets grew 15 percent to almost 175,000 outlets, while restaurants and other on-premise outlets increased 12 percent to 332,000 locations in the U.S.,” said Danny Brager, vice president of the beverage alcohol practice at Nielsen. “Retailers recognize that wine is a large and growing category, even in economically challenging times, and tends to attract upper income consumers, and all legal drinking age groups. Wine also pairs well with food, leading to larger, more profitable shopping baskets.”

Sparkling wine and champagne

Shipments of sparkling wine and champagne reached 17.7 million cases in 2012, up 2 percent over the previous year. California sparkling wine grew 3 percent with Moscato based sparklers driving the growth.

While overall total 2012 volume slowed after a major surge in 2011, sparkling wine shipments to the U.S. in 2012 were at their highest level since 1987.

U.S. wine exports

U.S. wine exports, 90 percent from California, reached $1.43 billion in winery revenues in 2012, an increase of 2.6 percent compared to 2011. Volume shipments reached 424.6 million liters or 47.2 million cases.

Of the top markets for California Wines, the European Union’s 27-member countries are the largest accounting for $485 million, up 1.7 percent; followed by Canada, $434 million, up 14 percent; Hong Kong, $115 million, down 30 percent; Japan, $111 million, up 6 percent; China, $74 million, up 18 percent; Vietnam, $27 million, up 22 percent; Mexico, $20 million, up 4 percent; South Korea, $16 million, up 26 percent.

Strickler to manage Redwood Credit Union’s Ukiah branch and community efforts

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Written by: Editor
Published: 16 April 2013

stricklerheadshot

UKIAH, Calif. – Redwood Credit Union (RCU) recently named Kristie Strickler as manager of its Ukiah branch, located at 195 S. Orchard Ave.

In her new role, Strickler oversees service to members, staff management and training, and all daily branch operations, as well as business development, community relations and local volunteer efforts.

Strickler has been with Redwood Credit Union for more than nine years, most recently as branch manager for RCU’s Sebastopol location.

She previously served as Ukiah’s assistant branch manager from 2009 to 2011.

She is active in the local community, and she and the Ukiah branch staff will be participating in the Mendocino County Human Race this year on May 4 to benefit the Friends of Wyatt Phillips fund.

For more information, call 800-479-7928 or visit www.redwoodcu.org .

Garamendi joins major congressional jobs initiative to ‘Make It In America’

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Written by: Editor
Published: 15 April 2013

Congressman John Garamendi (D-Fairfield, CA) has joined House Democrats in releasing a Make It In America jobs agenda.

Last week, as the House of Representatives considered the Small Conduit Hydropower Development Act, Garamendi introduced a Make It In America amendment on the House Floor that would have strengthened Buy America requirements.

The amendment would have carried out the simple principle that our tax dollars for public works projects should go toward U.S. manufacturing, creating American jobs. While the amendment was defeated, Garamendi said he will continue his fight for jobs.

“Our first priority as Representatives of the American people must be creating more American jobs,” said Congressman Garamendi. “Over the past two decades, the manufacturing sector has lost nine million jobs – in large part due to unwise public policy. However, manufacturing is roaring back with approximately half a million new jobs created in the last three years.”

Garamendi added, “We can do so much more by improving education, research, infrastructure, and adapting to changing conditions. The very first step though is simple: when the government invests in public works projects, including hydropower, that money should go toward employing American workers. The businesses are ready, the workers are ready, it’s time for Congress to step up to the plate, so we can Make It In America once again.”

Democratic Whip Steny Hoyer announced the jobs agenda, consisting of four core components: a national manufacturing strategy, encouraging exports and improving transportation, encouraging manufacturers to bring jobs and innovation home, and maintaining a highly skilled and educated workforce.

Whip Hoyer said that Congressman Garamendi was the biggest champion of Make It In America agenda. Garamendi has supported the jobs plan through legislation, regular speeches on the House Floor, amendments in his committees, at town halls and other events in his congressional district, including at a recent meeting of his Manufacturing Advisory Group held in Davis, Calif.

At the press conference, Hoyer noted that many of the initiatives have bipartisan support. Also, several Make It In America bills passed Congress on a bipartisan basis and were signed into law.

Similarly, Congressman Garamendi’s past legislation and his amendment also have received support from Republicans and Democrats. These types of proposals to strengthen the manufacturing sector have broad support among the American public across the ideological spectrum.

Thompson enhances privacy protections in CISPA

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Written by: Editor
Published: 14 April 2013

U.S. Rep. Mike Thompson (CA-5), a senior member of the House Permanent Select Committee On Intelligence last week introduced and passed several privacy related provisions to H.R. 624, the Cyber Intelligence Sharing and Protection Act (CISPA) during committee proceedings on the bill.

CISPA allows for information sharing about cyber threats between the intelligence community and businesses.

The intelligence community would keep businesses aware of potential cyber attacks that threaten national security and the economy. Businesses would keep the intelligence community informed when cyber attacks on their systems occur.

Thompson provisions address privacy concerns with the legislation.

“There is no reason we can’t protect our country and economy against a crippling cyber security threat and protect the constitutional privacy rights of Americans,” said Thompson. “The provisions I offered to this bill will provide additional oversight to the sharing of cyber threat information, makes sure that sensitive personal information is not exchanged, and that individual privacy rights are protected.”

Thompson’s first amendment would expand oversight of the information sharing by providing the Inspector General of the Intelligence Community, each agency’s privacy officer and Congress with additional oversight authority.

The amendment also requires a new report by the privacy officials of the Office of the Director of National Intelligence (ODNI) and the Department of Justice (DoJ), in consultation with the Privacy and Civil Liberties Oversight Board (PCLOB), the Office of Intelligence Community Inspector General, and individual agency’s privacy officials.  

These reports are to be prepared in both a classified and unclassified form to guarantee CISPA’s transparency and accountability moving forward.

The second provision authored by Thompson amends a committee amendment that deals with limiting the amount and kinds of information that can be shared by businesses with the intelligence community.

The provision requires the head of each federal agency receiving cyber threat information to notify the Director of National Intelligence (DNI), the Attorney General, and the congressional intelligence committees of any significant violations of information sharing.

It requires the DNI, in consultation with the Attorney General, the Secretary of the Department of Homeland Security (DHS), and the Secretary of Defense to oversee compliance with the bill’s established limits on information sharing.

CISPA does not require anyone to provide anything to the government. All sharing of cyber threat information would be voluntary, it forbids the government from retaining information shared that is not cyber threat information, and it restricts the government to use cyber threat information for national security purposes.   

Thompson’s language amending CISPA passed unanimously. It is expected that H.R. 624 will be voted on by the full House of Representatives this week.

Thompson represent California’s Fifth Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma Counties.

He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and chairs the bipartisan, bicameral Congressional Wine Caucus.

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  2. Low-cost energy efficiency retrofits offered for PG&E commercial customers
  3. Gov. Brown to lead trade and investment mission to China this week
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