Shipments of Californian wine to all markets in the US and abroad increased 3% last year.
Figures from the Wine Institute, produced in the end-of-year Gomberg-Frederikson Report - showed shipments increased by 554 million gallons (233.2m nine-litre cases).
Retail value increased by 6% in 2007, equating to $18.9 billion (9.5bn).
Robert Koch, president and chief executive at the Wine Institute, said the new California state advertising campaign - featuring among others Governor Arnold Schwarzenegger - had contributed to the strong figures.
He added: "Strong consumer interest, along with growing retailer and restaurant support and more direct-to-consumer sales, is resulting in wider distribution and selection of California wines."
California represents 95% of all US wine exports and Europe accounts for more than half of all sales at $474m (239m).
You can watch the recent California advertising campaign with Schwarzenegger and a host of other familiar faces, by clicking here