Napa Wineries Contribute $11 Billion Locally
Sales called "healthy" as more wineries up than down in recent poll
Linda ReiffNapa, Calif. -- In a time of turmoil around the world and uncertainty around the kitchen table," as she put it, Linda Reiff, executive director of the Napa Valley Vintners (NVV) was happy to report some good news: a new study has found that Napa's wine industry contributes nearly $11 billion annually to Napa County's economy.
In addition, the NVV polled its members at the end of September to find out how they're doing, and reports: "The industry is very healthy," according to Leiff. "Our poll shows more wineries up in sales than down, with others flat," she said during a (telephone) press briefing to announce the new report.
The total economic impact is 15% higher than the last time the nonprofit trade organization released such data, in 2005. The research was performed for the vintners by wine industry analyst Barbara Insel of Stonebridge Research. NVV represents 330 Napa Valley wineries, most of the wineries in the county. At the time of the last report, the group had 270 members. Most of the new members are naturally very small.
Look at the state of California and the nation, moreover, and the impact of the Napa industry is even more remarkable: The county produces only 4% of California's winegrapes, yet is responsible for nearly 30% of the economic impact of wine in California, and nearly 34% of the economic impact of California's wine to the U.S. economy, which totals a mighty $42.4 billion annually.
One caveat is that the report was compiled before the economy took its recent dire turn, and reflects data for 2006, the last available year. NVV plans to poll its members again at the end of the month. For now, both Reiff and Insel reported anecdotal suggestions that wineries are receiving fewer visitors to their tasting rooms, but those who do visit are spending more money.
Why are the numbers are up? Obviously wine sales in general have increased, but Insel said another factor is that Napa Valley is increasingly attracting wine infrastructure, from laboratories to suppliers and consultants, all representing greater value.
Reiff also noted that NVV has been expanding its promotional programs--and participation from members--every year, as it has for the 13 years she has been with the group.
The Wine Institute performed economic analyses of the state and national impact last year, Insel noted, and this brings the numbers to the local level.
Direct revenue from wine produced in Napa County now exceeds $4.1 billion annually, a major factor in the local economy. The wine and vineyard sector is easily the county's largest employer. Napa Valley's wine and vineyard sectors directly, and indirectly through the services and products they consume or generate, provide nearly 40,000 jobs in the county, when suppliers, tourism and other related jobs are included. The county's total population is around 127,000 (2002 figures).
The wine industry is also the leading source in creating jobs in Napa County, and generates local, state and federal tax revenues of at least $4.4 billion.
At present, Napa County's grape and wine industry contains 45,000 total vineyard acres, 42,400 producing. The payroll it generates represents $1.5 billion inside Napa County. It produced 9.2 million 9-liter-case equivalents and contributed $73 million to charity. And the county attracts 3.5 million visitors per year.