Wine Industry Report

Industries produce $3 billion annually for state.

The Washington wine, grape and grape juice industries contribute $3 billion annually to the state‟s economy and more than $4.7 billion annually to the U.S. economy, according to a new study commissioned by the Washington Wine Commission and the Washington Association of Wine Grape Growers. The study, developed by MKF Research LLC, the leading research source on the U.S. wine industry, studied data from 2006 and was an update to a previously released 2001 study based on 1999 data.

“As the second largest producer of premium wine in the United States, this study further illustrates that Washington wine is a marquee industry for the state,” said Robin Pollard, executive director of the Washington Wine Commission. “Washington‟s grape production has bolstered our economy through significant job growth, trade, taxes and revenues and wine, in particular, provides a value-add with wine country tourism. As wine consumption continues to increase in the U.S. and abroad, we expect further growth and visibility of Washington‟s wineries and grape growers.” The comprehensive study titled, “Economic Impact of Washington Grapes and Wine” measures the full economic impact of the wine, grape and grape juice industries in terms of employment, agricultural statistics, product revenues, taxes and several other indices. Among the key findings include: Employment 19,000 jobs across the state with a payroll of nearly $579 million; nationwide the number jumps to 29,000 and $850 million. These figures represent a significant increase from 11,000 jobs and wages of $350 million in 1999.

Taxes
The wine, grape and grape juice products sectors paid over $145.1 million in state and local taxes in Washington State. These sectors were also responsible for an additional $268.7 million in federal taxes and $57.5 million in taxes in other states. Winery Revenues The number of wineries has increased from 160 in 1999 to 534 today. Winery revenues have increased 51 percent from $289 million in 1999 to $436 million in 2006. Tourism Wine-related tourism expenditures increased 1,157 percent over 1999 reaching $237.6 million for 2006, a 165.3 percent increase per year. The number of wine-related tourists in Washington increased from 350,000 in 1999 to 1.7 million in 2006. Agriculture The number of grape farm entities increased 30 percent reaching 325 in 2006 with 57,000 grape bearing acres, a $144 million farm gate grape value and a $463 million value for grape juice production.

“Washington State‟s perfect climate for grape growing combined with innovative viticultural practices and vineyard development will continue to be a rapidly growing sector of Washington‟s agricultural economy,” said Vicky Scharlau, executive director of the Washington Association of Wine Grape Growers. “The state is producing a large variety of wines of premium quality and we expect that to have a „ripple effect‟ of economic benefits for the state and nationwide.” About the Washington Wine Commission The Washington Wine Commission is responsible for the promotion and development of the Washington wine industry, representing the state‟s more than 530 wineries, 350 wine grape growers and 31,000 vineyard acres.

[Source: Washington Association of Wine Grape Growers]¹

1. Organized in 1983, the Washington Association of Wine Grape Growers serves the needs of wine grape growers in Washington State. The Association advocates for the wine growing industry by providing promotion, information, representation, education for wine grape growers and helps to maintain the unity
   of the industry. The most important service to the membership is continuing education for a growing industry focused on premium quality. Membership includes wine grape growers, wineries, researchers and suppliers. [↩]