U.S. wine exports last year exceeded $1 billion for the first time with 90 percent coming from California, the Wine Institute said this week.

Nearly half the wine exports, $486 million, were shipped to the European Union.

Wine exports last year were $1,008,259,000, up 6 percent from 2007, the Wine Institute said.

The volume of the shipments increased 8 percent to nearly 130 million gallons or 55 million cases.

"Wine exports have increased steadily during the past 15 years, increasing more than five-fold from $196 million in 1994," said Robert P. Koch, president and CEO of the Wine Institute.

"Our wineries have been able to adjust and remain competitive despite changes in U.S. dollar exchange rates and during strong and weak conditions," Koch said.

Wine shipments to the European Union increased 9 percent over 2007. The next leading export markets were Canada, $260 million, Japan, $61 million, Hong Kong, 26 million and Mexico, $23 million.

The Wine Institute's trade director for the United Kingdom John McLaren said California overtook France as the second exporter to the UK behind Australia.

Exports of California wine to Poland increased 14 percent, well ahead of France, the Wine Institute said.

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