american wine industry growth: opportunities and challenges

American Wine Industry Growth:Opportunities and Challenges

The Puritans

Thomas Jefferson

Prohibition

WARNING!

WARNING!

Avoid yeast contact with grape juice…

or it will become wine!

Wine State Growth

Wine Country

Winery Growth

GNP

GNP

Number of Wineries in US2005: 3,8202006: 4,2802007: 4,7122010: 6,672

3,820

6,672

$162 Billion

The Wine Gold Mine(2007 Statistics)

• 1.1 million full-time equivalent jobs

• $33 billion in wages paid

• $11.4 billion FOB revenue

• 27.3 million wine-related tourists visits

• $9.1 billion federal taxes paid

• $8 billion state and local taxes paid

• $17.1 billion total taxes paid

New York Wine & Grape IndustryAnnual Economic Impact: $3.76 Billion

The Farm Winery Act of 1976 and especially the creation of the New York Wine & Grape Foundation 1985 both stimulated wine industry growth.  Wine country tourism has multiplied, bringing major economic benefits to rural areas, tourist-related businesses, and State and local governments by generating tax revenues.

Wineries-Year Established

13

37

238

0

50

100

150

200

250

1820-1975 1976-1984 1985-2010

Year

Number of Wineries

# Established

Tourism to Wine Country

384,000

1,439,000

2,685,000

4,137,000

4,980,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

1985 1995 2000 2003 2008

Vis

ito

rs p

er

Ye

ar

85%76%

161%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

Visits Sales per visitor Combined sales

Pe

rce

nt

Inc

rea

se

20

00

-20

08

U.S. Adults, 2010

*data from Wine Mkt Council and U.S. Census

Consumption Imbalance

9% wine

80% consumers

91% wine is enjoyed by

20% consumers

*data from Wine Mkt Council and U.S. Census

Per Capita Wine Consumption by Country, 2008

Rank, and liters per adult per year:

• Vatican City State (#1, 66.67)• France (#3, 53.22)• Italy (#6, 50.06)• Spain (#15, 32.92)• Greenland (#43, 13.89)• Niue (#52, 10.35)• Iceland (#53, 10.02)• United States (#57, 9.68)

*Data from Trade Data and Analysis

Winery Growth in the U.S.

*Data from TTB for Wine America

Adult Consumption in the U.S.

*data from Wine Mkt Council and U.S. Census

Growth Gap

Winery Growth vs. Wholesaler

*Data from TTB for Wine America

She’s Back!

C.A.R.E. Act

• Comprehensive Alcohol Regulation and Enforcement Act

• Community Alcohol Regulatory Effectiveness Act

• Wholesaler Enrichment Act

Diversity is our Strength. Unity is our Power.

Quality Integrity

Unity

Free Advice

• Focus on Quality

• Think Local

• Become Involved

• Get Political

• Join Wine Organizations

• Be Proud

Be proud of what you do

Diversity is our Strength. Unity is our Power.

Thank you!

Jim Trezise

President

New York Wine & Grape Foundation

jimtrezise@nywgf.org