Napa's Wine Industry Generates Nearly $11 Billion Annually to Local Economy
New Report Details Napa's Value to the Wine Industry Nationwide at $42.4 Billion
10/29/2008 - St Helena, CA-The Napa Valley Vintners (NVV) released today the latest findings on the economic impact of wine from America's most valued wine region. The impact on Napa County's economy alone is valued at nearly $11 billion annually. The research, conducted by wine industry analyst Barbara Insel of Stonebridge Research, found that the local impact had grown by 15% since the 2005 report. The research was prepared for the NVV, the non-profit trade association representing 330 Napa Valley wineries.
The report goes on to show the impact of this small, yet high-profile appellation on the California wine industry as a whole. While Napa Valley produces just 4% of California's winegrapes, the region is responsible for nearly 30% of the economic impact of wine in California, and nearly 34% of the economic impact of California's wine to the U.S. economy, a mighty $42.4 billion annually.
Insel says, "While the Napa Valley appellation, which covers almost the entirety of the county, is uniquely suited for fine winegrowing due to its geography and climate, this value statement is also a reflection of the region's reputation for quality and consistency, and the appellation's strength in marketing."
Linda Reiff, NVV's executive director said, "Especially during these tough times it is encouraging to know that we have a strong industry helping fuel our local and greater economy."
The report shows direct revenue from wine produced in the Napa Valley now exceeds $4.1 billion annually thereby boosting the local economy. The wine industry leads in job creation in Napa County, and generates tax revenues that affect local, state and federal budgets totaling at least $4.4 billion by conservative estimates.
The wine and vineyard sector is easily the county's largest employer. Napa Valley's wine and vineyard sector directly, and indirectly through the services and products they consume or generate, provides nearly 40,000 jobs in the county.
The report sums up an important measure of the region's success of which the community celebrated a forty-year milestone this year, its forward-thinking land-use policies that protect ag land, contain urbanization and provide incomparable scenic beauty. Insel says, "The protection of Napa Valley's distinctive appeal as an agrarian community is vital to maintaining both the industry and the jobs it creates, both directly and indirectly, through industry suppliers, tourism, retail and restaurant, and distribution. In 1968, vintners, growers and community members established America's first Ag Preserve, the Napa Valley Agricultural Preserve, which defined the urban footprint of all of the county's municipalities and today protects more than 38,000 acres of valley floor land. Since its creation, no land has been taken from the Preserve and it is the cornerstone of what defines and protects the wine industry in the county."
"We are fortunate to have had the support of our community to uphold land protection measures that keep Napa County rural and in agriculture - successful agriculture - which is rare and valued," said Reiff.
About the NVV
Now in our seventh decade, the Napa Valley Vintners (NVV) non-profit trade association is the sole organization responsible for promoting and protecting the Napa Valley appellation as a premier winegrowing region. Respect for our history reinforces our commitment to the preservation and enhancement of the Valley's land, wine, and community for future generations. We address the shared interests of our 330 member wineries
About Stonebridge Research Group LLC
Stonebridge Research Group provides business advisory services to the wine industry. Stonebridge Research's fact-based growth strategies offer a unique range of services to our clients to increase revenue and reduce costs, penetrate new markets and employ marketing dollars more effectively along with strategic business reviews to increase profitability. Stonebridge Research is the wine industry's most trusted source of data and market intelligence as well as solid market due diligence and business strategies for prospective wine industry ventures in the U.S. and internationally. For additional information, please visit www.stonebridgeresearch.com
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