Benefits of exporting

  • Increase sales and profits. If your wine business is succeeding in the U.S., expanding overseas will likely improve overall profitability. Furthermore, increased sales tend to increase productivity by lowering your per-unit fixed costs.

  • Short-term security. By expanding into international markets and spreading your risk over a wider customer base, your business will be less affected by fluctuations in the U.S. economy and marketplace. In addition, by exporting, you gain a better understanding of global markets, which means you’re more attuned to developing trends overseas and will be more likely to cash in on those trends, increasing your competitiveness.

  • Long-term security. The U.S. is a large market with a wealth of opportunity, but it’s also a mature market with intense competition from domestic and increasingly from foreign competitors. For most U.S. businesses, exporting isn't just a way to maximize profits today; it will soon be a necessity in what is fast becoming a truly global marketplace.

  • Enhance competitiveness. By extending your customer base overseas to take advantage of an ever-growing global marketplace — U.S. winery export revenue passed the $1 billion milestone for the first time in 2008, according to the Wine Institute — exporting can help you compete more effectively. Plus, exploring international markets can facilitate improvements in your existing products and lead to the creation of new ones. For example, you may discover that a niche product developed for an overseas market turns out to be an unexpected success in the U.S. as well. Or, conversely, export markets can extend the life of a product which has reached the end of its cycle in the U.S. And export sales can, in turn, help finance new product development for your home market.

  • Economies of scale. Exporting is an excellent way to enjoy pure economies of scale with products, such as wine, that are "global" in scope and have a wider range of acceptance around the world. This is in contrast to products that must be adapted for each market, which is expensive and time-consuming and requires more of an investment.