Economic Impact of Washington Grapes and Wine, 2006

A division of Frank, Rimerman + Co.

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Economic Impact of Washington Grapes and Wine, 2006

Washington Association of Wine Grape Growers

February 7, 2008

Rob Morris, Senior Manager

2A division of Frank, Rimerman + Co.

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What is Economic Impact?

Basically ….Jobs


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Jobs with:• Wine, grape and grape juice products

production• Suppliers of goods and services to the industry • Selling and reselling Washington wine such as

restaurants, distributors and retailers• Wine region tourism

Plus all the jobs created when these workers spend their salaries and wages


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Then we measure the revenues, wages and taxes generated by these jobs


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The IMPLAN model is a complex input-output model of the US economy, developed in the 1980s by the US Forest Service and the University of Minnesota and updated annually

IMPLAN is the standard model for estimating US economic impacts

IMPLAN is used by morethan 1500 organizations, including the US Federal Reserve, USDA, most states and localitiesand many corporations and universities


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What is Different in 2006 Study?

• Inclusion of Juice Grapes• Measuring Effect of Washington Wine and

Grape Industries Instead of the Effect of Wine and Grapes in Washington

• Only Including Distribution Channel Profits• Economic Impacts Beyond Washington:

– Suppliers– Wine Sales– Taxes


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A Small Community of Primarily Family Businesses

534 wineries and 325 vineyardsCreates, directly and indirectly:


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In Washington

Jobs for nearly 19,000 people

More than $340 million in taxes

$3.0 billion in Economic Impact for the State of Washington


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Nationally

Jobs for 29,000 people

More than $471 million in taxes

$4.72 billion in Total Economic Impact


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Change Since 1999 Report

Total Economic Impact $2.4 billion $4.7 billion

Estimated Juice Grape Portion - $700 millionWineries 160+ 534Winery Revenue $289 million $438 millionGrape Growers 250+ 325Farm Gate Value of Grapes $127 million $144 millionJobs 11,250 29,375Wages $350 million $850 millionState/Local/Federal Taxes $72 million $471 millionVisitors 350 thousand 1.7 million

1999 2006


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Grape Production

• 325 farm entities• 57,000 acres• 316,000 tons of

production• Market value of

$144 million


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Employment

• Wineries, vineyards and juice processors 4,185• Tourism 2,516• Restaurants, retail & dist.10,099• Other direct 508• Indirect and induced 12,067• TOTAL 29,375


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Wages

• Wineries, vineyards and juice processors $89.9M• Tourism $68.3M• Restaurants, retail & dist.$172.2M• Other direct $28.1M• Indirect and induced$491.6M• TOTAL $850.1M


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Revenues• Winery sales $437.6M• Gate value of grapes $144.2M• Juice sales $463.4M• Retail, restaurant & distribution $425.4M• Tourism $237.6M• Other direct $145.5M• Tax revenues $471.4M• Indirect and induced $1,544.8M• TOTAL $3,869.9M


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Washington remains

The 2nd largest wine grape and wine producer in the US and the largest producer of juice grapes

With a growing network of suppliers, service providers and customers benefiting from the industry


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Economic Impact – Grapes & Wine In state Nationally

• NATIONAL N/A $162,000M• California $51,800M $125,000M• Washington $3,000M $4,720M• New York $3,400M N/A• North Carolina $813M N/A• Michigan $789M N/A• Pennsylvania $661M N/A


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Thank you.

Rob Morris

Senior Manager

Frank, Rimerman & Co. & MKF Research LLC

707-967-5338

[email protected]

www.mkfresearch.com


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Economic Impact of Washington Grapes and Wine, 2006

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