Press Release: $3.76 Billion Generated for New York's Economy by the New York Grape, Grape Juice and Wine Industries

Additional $3.26 Billion from Out of State Wines

 The New York grape, grape juice and wine industries contributed over $3.76 billion in economic benefits to the economy of New York State in 2008, according to a study conducted by the Napa Valley-based Stonebridge Research Group LLC. This is an increase of over 10% from the $3.4 billion documented in an identical 2004 study, also conducted by Barbara Insel, who is now President and CEO of Stonebridge Research Group LLC.

The new study also shows that out-of-state wines sold in New York contributed an additional $3.26 billion, for a total economic benefit to the State of $7.02 billion from the grape and wine industries.

Data for the study came from various federal and state government agencies, private sources, and primary research conducted by Stonebridge. The figures for 2008 are a conservative indication of the current economic impact, since new wineries have opened in 2009 that were not included in this study (the total in on December 31 was 277); and anecdotal reports suggest that tourism and sales again increased in 2009.

Highlights of the study include:

* 39,000 full-time equivalent jobs (versus 36,000 in 2004), including 17,000 from the New York sector and 22,000 from out-of-state wines

* $1.5 billion in wages paid (vs. $1.3 billion), with $802 million from the New York sector, $770 million from out-of-state wines

* $508 million New York winery sales (vs. $420 million)

* $1.9 billion sales of other wines in New York (vs. $1.7 billion)

* $36.5 million of New York grape sales (vs. $30 million)

* 37 thousand grape bearing acres (vs. 31,000)

* $32.7 million of grape juice product revenues (vs. $27 million)

$376.5 million in wine-related tourism expenditures (vs. $312 million)

* 4.98 million wine related tourists (vs. 4.14 million)

* 1,438 grape farms (vs. 1384)

* $455 million in State and local taxes paid (vs. $427 million), including $230 million from the New York sector and $225 million from out-of-state wines

* Charitable contributions $8.6 million

"The grape and wine industry is an economic engine, and wine is the ultimate value-added product," said Jim Trezise, President of the New York Wine & Grape Foundation, which commissioned the 2004 and 2008 studies. "For years, the wine industry has been the fastest growing part of New York's two largest economic sectors of agriculture and tourism, and now we have solid data on the enormous economic benefits we generate."

The Stonebridge Research study, measuring the economic impact in one year, is complemented by another study released in October which shows industry growth over the past 25 years since the Foundation was created. The long-term study, conducted by New York Agricultural Statistics Service (NASS), measured growth in areas such as the number of wineries, total production, tourism, and similar indices.

Among the highlights of the NASS study:

* The number of new wineries in the 2000 decade exceeded the total created in the previous 170 years, with many in nontraditional regions of the state.

* Tourist visits to New York wineries in 2008 approached 5 million, up 21% from 2003, despite record high gas prices and a recession.

* Of 169 responding wineries, 124 made investments during 2006-2008 averaging nearly $400,000.

* Commercial wineries paid an average of $1,788,300 in federal and state taxes (excise and sales), with farm wineries averaging $34,600.

"The large and growing economic impact of the wine industry is the exact opposite of what is happening in the auto and other industrial sectors," said economist Barbara Insel. "When a company like General Motors closes a plant, all of a sudden its total economic impact becomes painfully apparent with the direct loss of jobs, the loss of business for suppliers, and the loss of spending power and tax bases in the local community. These are what we call direct, indirect, and induced effects of economic activity-in essence, the "ripple effect"-which can be either good or bad. In the case of the wine industry, the ripple effects are very positive in many areas of the economy-an upward spiral of benefits."

The New York Wine & Grape Foundation, a statewide not-for-profit trade association representing New York grape growers, grape juice producers and wineries, was created by State legislation in 1985 during an economic crisis in the industry. The organization's strategic goal is "to have the New York grape and wine industry recognized as a world leader in quality, productivity, and social responsibility."

"Our industry's dramatic growth is due largely to a productive partnership between the public and private sectors," said Trezise. "New York's public officials on the state and federal levels increasingly recognize that the wine industry is a gold mine for agriculture, tourism, and manufacturing, and that enlightened public policy will let us expand our economic contribution."

Stonebridge Research Group LLC in Napa, CA is a leading wine economics firm whose principals have conducted economic impact reports for the wine industry in many states, as well as a national study. Founder Barbara Insel is a leading authority on the business of wine who frequently speaks at industry conferences, writes articles for trade publications, and teaches the subject at the Culinary Institute of America and other institutions. She holds an MBA from Stanford University's Graduate School of Business and an MA in Economics from Brown University.