Wine’s economic impact on California $57B, nation $114B

Aug 9, 2016

(NBBJ) - The business of growing grapes and making wine in California contributed $57.6 billion to the state economy and $114.1 billion to the national economy last year, a new report said.

The California wine and winegrape sector and allied businesses annually deliver a total economic contribution of $57.6 billion to the state’s economy and $114.1 billion to the U.S. economy, according to a new report commissioned by San Francisco-based Wine Institute and Sacramento-based California Association of Winegrape Growers, or CAWG. California wineries and vineyards also directly and indirectly generate 325,000 jobs in California and 786,000 jobs across the nation, according to .

The report, “The Economic Impact of California Wine and Grapes 2015” by John Dunham & Associates of New York, is being presented Aug. 4 at a Joint Informational Hearing of the California Assembly Committee on Agriculture and Assembly Select Committee on Wine held at University of California, Davis.

By comparison, wine business activity in two key regions in the state, Napa and Sonoma counties, lifted those economies by a combined $26.7 billion, according to 2012 and 2014 reports.

Economic activity related to the industry statewide grew 17 percent from $49.2 billion when the last California report was done seven years ago and 19 percent from $96.0 billion nationwide. The report authors said this strong growth started with the Great Recession and continued with the slow recovery points to the strength and resiliency of the nation’s No. 1 wine-producing state as a positive economic force across the nation.

“Califrnia wine is an economic engine for our nation. Our predominantly small, family-owned businesses create jobs, pay significant taxes, and give back generously to charities and communities,” said Robert “Bobby” Koch, Wine Institute president and CEO. “These are significant accomplishments when the strong dollar and pressure from imports make the U.S. the most competitive wine market in the world, and we continue to face the threat of increased taxes and regulation at every level of government.”


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