Spanish wine has been gaining market share in the United States in recent years but remains only the seventh-largest exporter of wine to the USA, despite being one of the three countries, along with Italy and France, with the greatest winemaking tradition in the world. This means there is still a lot of market potential to be explored. Spanish wineries have a great opportunity to increase their presence in the U.S. market, where the demand for high-quality wines continues to grow.

Market Opportunity in the US

The most exported Designations of Origin (DO) from Spain are Cava and Rioja, followed by Ribera del Duero and Rías Baixas at a great distance. However, market studies show that American consumers have specific preferences that do not always align with current exports. For example, although Cava and Rioja are popular, Americans consume very little sparkling table wine and prefer white wines over red wines. This mismatch between market needs and Spanish exports is one of the reasons why Spanish wine holds a lower market share compared to Italy and France, which rank first and second due to their larger exports of white wines.

For Spanish wineries, this represents a unique opportunity to adjust their export strategy and offer products that better align with American consumer preferences. Introducing more white wines and adapting to local trends can help increase market share and strengthen the presence of Spanish wines in the United States.

Where to Start

When it comes to introducing Spanish wine to the U.S. market, some states present more opportunities than others. California, New York, and Florida are the states with the highest wine consumption. However, Florida has experienced the most significant growth in wine consumption in recent years. Unlike California, where there is a strong preference for local wines, Florida offers a more open and receptive market for imported wines, including those from Spain. This makes Florida an ideal market for Spanish wineries to begin their expansion in the United States.

Importing Alcoholic Beverages to the US

Exporting wine to the United States from Spain is not a difficult task, but it certainly involves a series of legal steps that must be carefully followed. Here is the process explained:

Federal Basic Permit

The first step is to obtain a Federal Basic Permit, required for the importation of bottled alcoholic beverages. This permit is granted by the Alcohol and Tobacco Tax and Trade Bureau (TTB) and has several requirements:

• Employer Identification Number (EIN): The applicant entity must have an EIN issued by the Internal Revenue Service (IRS).
• Physical Address in the United States: The entity must have a physical address in the United States.
• Company Documentation: Complete information about the entity’s structure, including articles of incorporation and operating agreements.

State License in Florida

In addition to the federal permit, a state license is required to import from Florida. This step is crucial to comply with state-specific regulations and ensure legal and smooth distribution.

Certificate of Label Approval (COLA)

A Certificate of Label Approval (COLA) is required for each product. This requires that the Spanish labeling complies with American labeling requirements, although European labeling regulations are generally more stringent than American ones regarding wines.

Designations of Origin

As in Spain, where the origin of the wine is protected by Designations of Origin, these certifications must be provided when the wine indicates them. This ensures that American consumers recognize and trust the quality and authenticity of Spanish wine.

Importation by Foreign Entities

It is possible to be an importer as a foreign entity, but this involves some added complexity compared to domestic entities in the United States. The assistance of a specialized legal advisor can simplify this process and ensure compliance with all regulations.

Import/Export Agreements

Although a winery can export wine from Spain through importers who have already followed all these steps, it is crucial to consider other legal factors. Legal supervision of agreements between exporters and importers is vital at a market entry stage like this. The absence of clear written agreements can lead to practices by the importer and/or distributor that often harm the competitiveness of the exporter’s product.

A legal advisor can help draft and review contracts that protect the Spanish winery’s interests, ensuring that all parties fulfill their obligations and avoiding misunderstandings or costly disputes.

Conclusions

The U.S. market offers a great opportunity for Spanish wineries looking to expand their international presence. Although there are challenges and legal requirements to be met, the growth potential is significant, especially in states like Florida.

To navigate this process effectively and ensure success in exporting wines to the United States, it is crucial to have the advice of lawyers specialized in international trade and the importation of alcoholic beverages. At our law firm, we are prepared to offer the support and guidance needed for your winery to take full advantage of these opportunities and expand your market with confidence.

Contact us to explore your options and begin your expansion into the U.S. market today.