South Dakota wine industry growing

RAPID CITY, S.D.(AP) — Prairie Berry Winery saw double-digit growth this summer in the number of visitors at its Hill City winery and shop, a remarkable increase considering “people are more conservative in their spending habits right now,” according to winery marketing manager Michele Slott.

Wine may be a discretionary expense, and retailers say shoppers have been looking for value-priced bottles, but there are several signs the area’s wine industry is growing despite the recession.

For example, Slott isn’t concerned about the addition this summer of a second winery in Hill City, the Stone Faces Winery and bed and breakfast.

Valiant Vineyards of Vermillion is the owner, and president Eldon Nygaard, who started the state’s first commercial winery, said wine is recession-proof because of its health benefits, and it’s an affordable way to relax.

“You may not have the discretionary income to get on the airplane and travel a long distance on a vacation or getaway, or even the money or time to get in your car and go on a four- or five-day trip, but you do have time — more and more people buy wine to bring home for the meal — to do a little celebrating or relaxing at home,” Nygaard said.

The winery is the region’s third; the Belle Joli Winery in Belle Fourche has been expanding, too.

Nygaard said Prairie Berry, which opened in 2004 and has expanded three times, built the wine industry in the Hills and that his winery should only add to the number of visitors at the others.

“It’s just like a McDonald’s and a Burger King and a Wendy’s being on the street corner across from each other. They all do better,” Nygaard said.

Retail wine choices have also expanded recently in Rapid City with the opening of the Wine Rack shop on Sheridan Lake Road at Catron Boulevard, in an area that’s already home to a four-year-old liquor store and the year-old Uncork’d wine bar. Owner Jeff Salter said the upscale shop would offer wine-tasting events and wine appreciation classes.

Tim Smith of Smith’s Liquors, an independent wine shop open for four years on Jackson Boulevard, said the increasing popularity of wine is enabling mom-and-pop liquor stores to compete against big discount liquor stores, which he said virtually eliminated the independent stores in the ’80s and ’90s.

“We can survive now because of wine,” he said.

He sells wine-related products including a cheese and cracker selection.

Smith added, “There’s no profit in beer.” In addition, he pointed out that brand-name liquors are so competitive, that prices are kept low.

But there are so many varieties and price points with wine that it’s a growing and profitable market, Smith said. He said Rapid City can probably handle the recent growth, but if it continues, “something will give.”

This year, Smith has noticed shoppers looking for bargains.

“We’re seeing less of the $100-plus bottles going out the door,” Smith said. “People are grabbing more of the $15 bottles, grabbing two or three of those instead of the $50 bottle.”

David Orris, co-owner of Vino 100, has noticed the same. The shop opened three years ago at 520 Seventh St.

“More and more people are looking for something, they’re trying to find something in that $10 to $20 range that’s still a quality wine,” he said. “Traditionally, bars and alcohol outlets are more resistant to downturns in the economy because people still want their drink — maybe more so.”

New laws have allowed sales of wine by the glass and outdoor seating service, enabling Vino 100 to diversify its shop from strictly retail sales.

The state’s wine industry is expected to continue to grow, said Bob Weyrich with the South Dakota Department of Agriculture’s Ag Development division.

Farm wineries were authorized in 1997 and there are now 14 operating, Weyrich said. They produced 300,000 bottles this year, creating a value-added product for fruit growers around the state with both retail sales and tourism.

He said the Black Hills could probably support three more wineries and he hopes to develop more wine-related events, such as the educational sessions offered this year at Deadwood’s St. Patrick’s Day celebrations.

“Wine is something more than just an alcoholic beverage,” Weyrich said. “I’ve said many times, and I actually coach my wineries, is, you’re not selling wine, you’re selling experiences.”