1200 G Street, NW, Suite 360 Washington, D.C. 20005 Phone: (800) 879-4637Fax: (202) 347-6341

1200 G Street, NW, Suite 360 • Washington, D.C. 20005 Phone: (800) 879-4637Fax: (202) 347-6341

WINE FACTS

Winegrape growing contributes to the U.S. economy in diverse ways. It generates jobs, exports, tax revenues, tourism and, of course, outstanding wines. Wine is also the center of intense global competition that may seriously affect the ability of American vintners to compete in this very global marketplace. The industry’s future success will hinge on public and private policies that facilitate rather than impede responses to new competitive conditions.

The U.S. grape crop, now grown in over 40 states, has more than tripled in 15 years from $955 million in 1985 to almost $3 billion in 2000. Winegrapes have increased far faster than the overall grape crop and now represent almost 2/3 of the total crop. Grapes are the highest value fruit crop in the nation and the seventh largest crop overall.

As vineyards continue to expand, so do the number of producing wineries. There are more than 3,000 wineries in all fifty states. Wine production, which typically adds value of approximately $2-$4 for each $1 of farm gate value, is closely integrated with grape growing operations. Wineries with tasting rooms contribute another $4-$10 per $1 of farm gate value to the rural economy by selling their wine directly to consumers.

The nation’s top wine producing states are (in production order): California, New York, Washington, and Oregon.California produces more than 90 percent of the volume.

Wineries are almost always located in rural areas, near the source of the grapes. The combination of vineyards and wineries provides a stable, year-round, and flexible base of rural employment. Winery tourism is very popular and contributes significantly to the rural economy, in many cases state tourism departments feature their wineries as a major tourist attraction.

The economic activity directly generated by the wine industry in turn creates additional jobs, wages and economic activity as services are purchased and wages are spent. In aggregate, wine contributes more than $45 billion to the U.S. economy, along with 556,000 jobs, which account for $12.8 billion in wages and $3.3 billion in state and local tax revenues.

Wineries and grape growers have made a major commitment to implement sustainable practices, which are environmentally sound, economically viable and socially responsible. Formal programs are being implemented in New York (agriculture environmental management program), California’s Central Coast Vineyard Team and Lodi-Woodbridge Winegrape Commission, Oregon LIVE (Low Input Viticulture and Enology) and Washington’s Walla Walla Valley Wine Alliance. Wine Institute and the California Association of Winegrape Growers have developed a California Code of Sustainable Winegrowing Practices with an accompanying 490-page self-assessment workbook of best management practices which is being embraced by growers and vintners throughout the state.

Foreign competition is formidable. The U.S. accounts for 9.6% of the world grape production (4th after Italy, France and Spain) accomplished on only 3.8% of the world’s vineyard acreage.

The U.S. represents about 7% of world wine production (4th after Italy, France, and Spain). Our 2002 exports of wine, at 73 million gallons, were about 3% of the world export market.

Imports of wine into the United States (2002) represent about 144 million gallons, an increase of more than 16% from 2001. Imports now account for 25% of the U.S. wine market.

WineAmerica is the national trade association of American wine producers representing more than 750 American wineries in 48 states. Questions should be directed to Bill Nelson, WineAmerica Vice President, at (202) 783-2756 Extension 123.

Winegrape Growers of America is a federation of state winegrape grower organizations representing America’s production of grapes for wine. For more information contact Fowler West at The Washington Group, (202) 789-2111.