Virginia Wine Industry Gets More Funds

State tax contributions will more than double, supporting research, education and promotion
 
Richmond, Va. -- During the past 30 years, Virginia has had a number of governors who supported the growth of the state’s emerging wine industry. The current governor, Bob McDonnell, has definitely joined the ranks of Virginia wine supporters.

McDonnell took the initiative while preparing the state budget for 2010-11 to change the allocation of the wine liter tax. This change will result in the Virginia Wine Board receiving a total of $1,325,000 -- more than double the $580,000 it received during the current fiscal year.

In Virginia, an excise tax known as the wine liter tax is charged on all bottles of wine sold in the state. In the past, the Virginia Wine Board has been funded by approximately one-third of the amount of the liter tax generated from the sale of Virginia-produced wines. During the next fiscal year, the Virginia Wine Board will receive 100% of the liter tax on Virginia wines.

According to Annette Boyd, director of the Virginia Wine Marketing Office, Gov. McDonnell has been very receptive to suggestions about ways to support the wine industry. “We’re so excited,” Boyd told Wines & Vines, “Getting increased funding in this budgetary environment is such an achievement. It will allow us to build strategies to support our goals of getting more visitors to wineries, getting wines into wine shops and restaurants, and increasing promotion of Virginia wines through articles and other promotion.”

The Virginia legislature passed the budget on the last day of the legislative session in mid-March, adjourned, and then reconvened for an amendment session. At the end of that session in mid-April, the bill became final. There were no changes in the sections affecting the Virginia Wine Board funding, and those funds will become available July 1.

The Virginia Wine Board met May 4 to begin the process of approving projects for the new fiscal year. One-third of the monies will go toward research and education, and the balance will fund marketing projects.

Tony Wolf, professor and viticulture specialist at Virginia Tech, will receive funds for research on programs such as disease control in vineyards, and Bruce Zoecklein, professor and enology specialist at Virginia Tech, will get support for education programs including hands-on training for winemakers.

Rock Stephens, owner of The Vineyard at Point Breeze with his wife Kris, and chairman of the Virginia Wine Board, noted that historically the board’s funds have gone to marketing and research. “Now we can spend some money on education as well, in both viticulture and enology. We’d like to develop programs that wineries can participate in that will help to raise the quality of Virginia wines overall, such as sensory training for winemakers,” Stephens stated.

The funds for marketing will cover ongoing expenses such as the Virginia winery guide and the state wine website, and allow for expansion of other promotional programs. “We’ll be able to develop more tools to promote Virginia Wine Month in October, Virginia Wine Expo in February and Love By the Glass in the spring,” Boyd commented. “Also we’ll be able to do more with our Wine Masters promotion, and promote wine shops and restaurants that promote Virginia wines.”