Wine growing history in the USA is much younger than in Europe and it all started with the Spanish missionaries planting the first vines at La Paz, in Baja, California in the 18th century. The region's first commercially produced wine was produced by J.J. Warner's vineyard in Los Angeles in 1831. The arrival of settlers lured by the California Gold Rush in 1849 led to increased demand and vineyards being established in the Sierra foothills.
Viticulture developed with the import of European grape varietals and the industry became increasingly important. The board of State Viticultural Commissioners was established which set foundations in 1880 to 1895.
Challanges with Prohibition in the 1920s, World Wars and problems with phylloxera were challenging to the young wine industry, and Napa and Sonoma's more established vineyards fared better.
Californian wine production evolved to be governed by the system of American Viticultural Areas (AVAs) established in 1978, which are still evolving today. An AVA requires that at least 85 per cent of the wine must be from the grapes grown in the area. State Law in California also requires that 75 per cent of a wine must be constituted from local grapes.
Since the 1960s there has been significant growth in international trade in Californian wine. Partnerships with top Bordeaux estates have been developed which has led to the emergence of a small number of estates whose wines are now revered for their quality. These have become highly sought after by wine investors and collectors and are actively traded on the global secondary fine wine market.
Today, California's investment wines can command prices reaching six-figures, some new vintages are released via La Place de Bordeaux and they account for up to 10 percent of the trade on Liv-ex.
