California Wine Makes Big Impact on State and National Economies

 

The impact of the California wine business on the California economy is nearly $52 billion a year, according to a report commissioned jointly by the Wine Institute and California Association of Winegrape Growers (CAWG), and prepared by the wine business consulting firm, MKF Research LLC. The nationwide impact of the California wine industry is nearly two and a half times that, totaling over $125 billion. The 25 page report was released at the Fort Mason Conference Center in San Francisco, and is based on data from 2005.

According to the report, the wine industry in California supports 875,000 jobs, stimulates billions of dollars in commerce, trade, taxes and revenue.

The industry also brings in substantial tourism dollars, adds considerably to California’s image abroad, and encourages the preservation of family farms, and the protection of the environment.

California has nearly 500,000 acres of productive vineyards and wine from those vineyards represents the top finished agricultural crop in the state.

The first rate weather and superior growing conditions that range from the Oregon border in the north to the Mexican border in the south, and the many individual regions in between, make it possible for California’s highly skilled and inventive growers and vintners to create high quality wines in nearly every price range.

Almost 75% of California wines are sold in states outside of California. This generates increased revenues and increases the employment opportunities for restaurants, retail sales, shipping, and distribution. That’s why the estimate puts the total national impact of California wines at about $125 billion, over $73 billion of which comes from outside California.

National tax revenues from California wines exceed $13 billion, with about $8 billion coming from taxes at the local, state and federal taxes paid outside of California.