California wineries are anticipating a very good year because demand is higher and the number of consumers drinking premium wines is expected to increase, according to wine economist Bob Smiley, dean of the Graduate School of Management at UC Davis. Data collected for the business school's annual economic report to the California wine industry show that the $7 to $10 bottle of premium wine is the fastest growing portion of the market for wine makers. "Despite the fact that the chardonnays are the best selling, wine growers are replacing most of their phylloxera-damaged vineyards with red varietals," says Smiley. "The hottest new marketing tool for vintners is the use of the Internet in advertising their product. Wineries will investigate offering direct sales to consumers, providing customized labels." Smiley cautions wine growers not to over-plant and to offer a mixture of varietals. Smiley provided the yearly economic report this week to more than 300 wine industry executives who attended this year's wine industry symposium in Napa.