Got wine? Arizona's industry in bloom

A recent fire at one of Arizona's oldest wineries isn't expected to pull the plug on the state's small but growing wine industry.

Helped by a law that has spurred winery investment and sales and by improved ratings for local wines, the industry has blossomed in recent years.

"Arizona has been discovered as a place with a quality climate and growing areas," said Rod Keeling, recent past president of the Arizona Wine Growers Association.
Wines produced here "aren't just novelties anymore," he added.

The state now counts 38 federally licensed wineries, said Keeling, who with his wife owns Keeling-Schaefer Vineyards in southeast Arizona's Cochise County.

That's up from nine licensed wineries earlier this decade and none before the early 1980s.

However, Arizona still isn't close to being a top wine-producing state. California accounts for about 90 percent of U.S. production, according to Wine America, a trade association for wineries.

Arizona Vineyards, founded in 1984 and one of the state's oldest wineries, was destroyed by fire last week. A suspect was arrested after several eyewitnesses saw him leaving the area as the blaze started, according to a statement by Lt. Octavio Gradillas, a commander in the Nogales Police Department's criminal-investigations unit.

Winery owner Tino Ocheltree couldn't be reached for comment but told police he estimated damage at $2 million.

"I will build again," Ocheltree earlier told the Arizona Daily Star.

Arizona's industry still accounts for a minimal proportion of statewide wine consumption. Nevertheless, production has been growing and more investors are adding capital, encouraged by a 2006 state law that Keeling said removed some restrictions on wineries and vineyards.

In particular, the law has allowed those ventures to sell directly to consumers and retailers, bypassing wholesalers, provided the wineries don't produce more than 20,000 gallons, about 8,400 cases, a year.

The Arizona Wine Growers Association estimates the industry's yearly economic impact to the state at around $38 million, including production, employment and tourism.

California receives about two-thirds of the roughly 27 million visits to U.S. wineries each year, according to Wine America.

Many of the world's top wine-producing regions are in dry climates, so wine production in Arizona isn't such a far-fetched idea. Compared with traditional Arizona crops like cotton and alfalfa, grape plants use less water and generate several times more revenue.

"It's a real effective crop in terms of water use and value," Keeling said. "Besides, nobody goes to see cotton grow."