French Wine Export to the USA

The American market offers significant opportunities for French wine exports. Consumption habits, regulations, taxes: Les Grappes provides more information on how to export wine to the USA.

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The American Market: Key Figures and Trends

The USA, the world's leading wine-consuming country

Since 2013, the United States has been the world's leading consumer of wines and spirits by value. However, Americans are not heavy wine drinkers, consuming only 12.3 liters per capita per year, far behind the 34 liters consumed by the French, for example.

In the United States, still wines, particularly white wines, are predominantly favored by consumers. Local production plays a significant role: 74% of wines consumed originate from American vineyards, with over 83.5% of national production coming solely from California. Nevertheless, foreign wines, especially French wines, also hold a strong presence in the market.

French Wine in the USA

The American market is a significant market for French wines: it is the largest importer, accounting for 24% of wine exports by value in 2024. The trend is upward: in 2024, French wine exports to the United States amounted to 3.81 billion euros, compared to 2.1 billion in 2022 and 1.4 billion in 2020 during the health crisis.

France remains the leading supplier to the United States by value. However, between 2021 and 2023, imports of French wines decreased by over 58% in volume and 33.5% in value, a consequence of destocking policies implemented by American distributors after the post-Covid period. 

As connoisseurs of fine wines, Americans are significant consumers of still wines, particularly favoring the esteemed red wines from Bordeaux and Burgundy. Demand is notably high in California, Texas, Florida, and Illinois. Sparkling wines and bulk still wines secure the second and third positions, respectively, among imported viticultural products.

Exporting Wine to the USA: What You Need to Know

The legislative and commercial framework in the USA is intricate, often posing a significant barrier for those looking to sell wine in the United States. A thorough understanding of its operational mechanisms is crucial before market entry.

The Three-Tier System

Wine commercialization in the United States is regulated by the « Three Tier System ». This three-stage framework mandates that all wine sales to the final American consumer must pass through three distinct intermediaries.

The initial intermediary is the importer, who procures wine directly from the foreign producer. This entity must hold a specific, nationwide license, authorizing the sale of products to a distributor (or wholesaler).

This constitutes the second intermediary. Distributors typically hold state-specific licenses, enabling them to resell wines to retail vendors or to the HORECA sector (hotels, restaurants, and cafes).

These entities represent the third intermediary before the final consumer can purchase the wine. Consumption then occurs either “on-premise” (e.g., bars, restaurants) or “off-premise” through retail sales at wine shops or supermarkets.

This three-tier system partly explains why the price of French wine in the USA is often high.

American Taxes on French Wine

With a clear understanding of this system, it becomes crucial to identify the various taxes and fees applicable to a bottle of wine exported from France to the United States.

Similar to all alcoholic beverages, wine is subject to various taxes, including VAT and excise duties. Notably, customs duties on bottled wine are typically modest, and lower for imports into the United States compared to the European Union. Conversely, bulk wine incurs a higher customs duty in the USA than in the EU.

It is also important to note that the issue of American surtaxes remains a significant point of contention for the industry. The initial 'Trump tax,' enacted in October 2019, levied a 25% surtax on European still wines under 14% ABV and packaged in containers smaller than 2 liters. Its suspension in 2021 followed a 40% decline in French wine exports to the United States and an estimated €500 million loss for the sector.

Since Donald Trump's return to the White House, the trade climate has once again become uncertain.

A 15% customs duty is currently imposed on European wines and spirits. Concurrently, Trump has repeatedly threatened a tax of up to 200% on French wines and champagnes, stemming from broader trade tensions between the United States and the European Union. While this measure has not yet been implemented, the prevailing uncertainty impacts French exporters and has already led to a slowdown in certain shipments.

Practical Steps for Shipping Your First Order

Producers aiming to sell French wine in the USA must adhere to specific procedural steps:

• Register with the US administration (the FDA, US Food and Drug Administration, which is the US government agency responsible for food and drugs) to be authorized to sell in the United States (renewal required every two years).
• Develop wine labels compliant with the American market and secure a Certificate of Label Approval. The primary distinction from French labels is the mandatory inclusion of the US importer's name and address on each bottle, alongside all other legal disclosures required for export sales.

As evident, the sale of French wine in the USA is governed by a multitude of laws and regulations. Nevertheless, the market remains robust and continues to offer significant opportunities for French wine producers.