Wine

Wine Industry Profile

Updated June 2015

State Wine Links

Introduction

Wine is produced in areas where grape, tree fruit or berries grow. The alcohol in wine creates demand for the product. Wine production began about 8,000 year ago. Today 60 countries produce over 100 billion gallons of wine a year.

The United States produced over 836 million gallons of wine in 2013. The US is the fourth largest producer of wine and the largest consumer of wine in the world. The number of wineries in the US has increase to 10,047 in 2015 from 2,230 in 1998.

 

State 1998 2015 State 1998 2015 State 1998 2015 State 1998 2015
AK 1 9 IL 19 143 MT 2 20 PA 66 267
AL 4 24 IN 23 102 NC 15 186 RI 6 15
AR 10 28 KS 7 41 ND 1 15 SC 4 26
AZ 13 69 KY 12 89 NE 2 35 SD 1 29
CA 1094 4089 LA 6 12 NH 4 48 TN 19 63
CO 25 155 MA 21 78 NJ 25 72 TX 45 412
CT 16 55 MD 14 94 MN 24 76 UT 6 15
DE 1 4 ME 7 45 NV 1 6 VA 62 310
FL 12 80 MI 43 279 NY 158 470 VT 10 41
GA 12 60 MN 10 90 OH 71 246 WA 124 950
HI 3 8 MO 42 202 OK 3 84 WI 17 128
IA 13 120 MS 5 6 OR 120 554 WV 11 29
ID 19 61             WY 1 7

 

United States wine demand in 2013 is 2.82 gallons per resident up from 1.95 gallons in 1998. Per capita consumption will be higher if based on legal drinking age population (2013 adult consumption 3.89 gallons per person).

Wine produced from locally grown grapes, tree fruit or berries has the potential to add 8 to 10 times the value to the crop.

Marketing

Before producing wine for sale, the business must apply for and receive a permit from both the federal and state government.

·         Contact the Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau- for a Federal Wine Permit.

·         A list of each states liquor regulators can be found at  the Wine Institute

State laws tightly regulate the marketing and distribution of wine in their state. Complying with those laws is a must-do. Shipping wine into another state requires the wine-seller to comply with the laws of that state. Breaking any of the federal or state laws can result in a felony.

At any one time, there are over 20,000 wine labels for sale in the US. A successful new wine must have a well-designed marketing program executed by people who enjoy meeting the public and have experience in selling.

Production

Wineries come in all sizes from a few hundred gallons a year to E&J Gallo producing over 200 million gallons a year.

All wine production follows the same four steps:

·         Harvest & Processing the fruit

·         Fermentation

·         Clarification

·         Packaging

While the process may sound simple, the complexity of the crop, weather, environment, taste preferences, production factors all combine to making a good wine difficult.

The production of good tasting will is the result of years of learning, training and experience.

Management

A winemaker, also known as an enologist or vintner, oversees the entire production process of creating wine, including grape harvesting, crushing, fermentation, aging, blending and bottling. They combine scientific concepts with practical experience to alter a wine's chemical composition and make key decisions based on the levels of acid, sugar, sulfur and sulfite within a wine.

Winemakers also supervise the work of viticulturists, the grape growers who work for the winery or an independently owned vineyard. In the case of smaller wineries, a winemaker's responsibilities could begin with grape planting and extend through to the marketing and selling of the final product.

A bachelor's degree in viticulture would be beneficial.

Financial

A five year review of over 200 winery financial reports from across the US show profits before taxes ranging from 3.4 percent to 9 percent.

Income Data          
Year 2010 2011 2012 2013 2014
Net Sales 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Goods sold 53.6% 53.7% 52.6% 51.3% 51.1%
Gross Profit 46.4% 46.3% 47.4% 48.7% 48.9%
Operating Expenses 38.0% 36.6% 37.8% 36.6% 37.2%
Operating Profit 8.4% 9.7% 9.6% 12.1% 11.7%
All Other Expenses (net) 5.0% 4.8% 3.7% 3.9% 2.7%
Profit Before Tases 3.4% 4.9% 5.9% 8.1% 9.0%

The cost to develop a winery can be as high as $70,000 per 1,000 gallons (400 cases) of wine making capacity for just the building and wine making equipment. Adding a vineyard is extra.

Wine Associations

State

Alabama Wineries and Grape Growers Association 

AL

Arizona Wine Growers Association

AR

Alexander Valley Association 

CA

Amador County Wine Grape Growers' Association 

CA

Anderson Valley Winegrowers Association 

CA

Atlas Peak Appellation 

CA

Calaveras Wine grape Alliance 

CA

Carneros Wine Alliance 

CA

El Dorado Wine Grape Growers Association 

CA

Family Winemakers of California

CA

Hospitality de Los Carneros 

CA

Howell Mountain Vintners & Growers Association 

CA

Humboldt Wine Association 

CA

Lake County Winery Association 

CA

Lamorinda Winegrowers Association 

CA

Livermore Valley Winegrowers Association 

CA

Lodi Appellation Winery Association 

CA

Lodi District Grape Growers Association 

CA

Madera Vintners Association 

CA

Mendocino Winegrowers 

CA

Monterey County Vintners & Growers Association

CA

Mount Veeder Appellation Council 

CA

Napa Valley Grape Growers 

CA

Napa Valley Vintners 

CA

Oakville Winegrowers 

CA

Paso Robles Wine Country Alliance 

CA

Placer County Vintners Association 

CA

Placer County Wine & Grape Association 

CA

Russian River Valley Winegrowers 

CA

Rutherford Dust Society 

CA

San Diego County Vintners Association 

CA

San Joaquin Valley Winegrowers Association 

CA

San Luis Obispo Vintners Association 

CA

Sierra Grape Growers Association 

CA

Sierra Vintners 

CA

Silverado Trail Wineries Association 

CA

Sonoma County Vintners 

CA

Sonoma County Winegrape Commission 

CA

Sonoma Valley Vintners and Growers Alliance 

CA

Sta. Rita Hills Winegrowers Alliance 

CA

Stag's Leap District Winegrowers Association 

CA

Suisun Valley Grape Growers Association 

CA

Temecula Valley Winegrowers Association 

CA

The Wine Institute

CA

Ventura County Winery Association 

CA

West Sonoma Coast Vintners 

CA

Wine Artisans of the Santa Lucia Highland

CA

Wine Growers of Dry Creek Valley 

CA

Wine Road of Northern Sonoma County 

CA

Wineries of Santa Clara Valley 

CA

Colorado Wine Industry Development Board

CO

The Vineyard and Winery Association of West Georgia 

GA

Winegrowers Association of Georgia 

GA

Iowa Wine Growers Association 

IA

Upper Mississippi River Valley AVA 

IA, IL, MN, WI

Idaho Wine Commission

ID

Illinois Grape Growers and Vintners Association 

IL

Indiana Wines

IN

Maryland Wineries Association

MD

The Maine Winery Guild 

ME

Michigan Grape & Wine Industry Council

MI

Minnesota Grape Growers Association

MN

Missouri Wine and Grape Board

MO

North Dakota Grape Growers Association

ND

Nebraska Winery & Grape Growers Association

NE

New Hampshire Winery Association 

NH

New Mexico Wine Growers Association

NM

Adirondack Coast Wine Trail 

NY

Canandaigua Wine Trail 

NY

Chautauqua County Visitors Bureau 

NY

Cooperstown Beverage Trail 

NY

Dutchess Wine Trail 

NY

Hudson Berkshire Beverage Trail 

NY

Keuka Lake Wine Trail 

NY

Lake Erie Wine Country 

NY

Lake Ontario Wine Trail 

NY

Long Island Wine Council

NY

New York State Wine & Grape Foundation

NY

New York Wine Industry Association

NY

Niagara Wine Trail 

NY

Shawangunk Wine Trail 

NY

Thousand Islands-Seaway Wine Trail

NY

Ohio Wine Producers Association

OH

Oregon Wine Board 

OR

Oregon Winegrowers Association

OR

Southern Oregon Winery Association 

OR

Pennsylvania Wineries Association

PA

South Dakota Wine Growers Association

SD

Tennessee Farm Winegrowers Association

TN

Texas Hill Country Wineries

TX

Texas Wine and Grape Growers Association

TX

Virginia Wine Board Marketing Office 

VA

Virginia Wineries Association 

VA

Vermont Grape and Wine Council 

VT

Cascade Valley Wine Country 

WA

Clark County Wines 

WA

Columbia Cascade Winery Association 

WA

Columbia Gorge Winegrowers 

WA

Lake Chelan Wine Valley 

WA

Puget Sound Wine Growers 

WA

Rattlesnake Hills Wine Trail 

WA

Red Mountain AVA Alliance 

WA

Spokane Winery Association 

WA

Walla Walla Valley Wine Alliance

WA

Washington Association of Wine Grape Growers

WA

Washington Wine Institute

WA

Whatcom Wine Association 

WA

Wine Yakima Valley 

WA

Woodinville Wine Country 

WA

Resources/Other Links

Wine Institute

EU-27 Wine Annual Report and Statistics, GAIN Report, FAS, USDA, February 2014.

List of Permitted Wineries, Alcohol and Tobacco Tax and Trade Bureau, U.S. Department of the Treasury.

National Association of American Wineries

National Grape and Wine Initiative - This nationwide coalition represents all segments of the grape industry including raisin, juice, fresh grape and wine. Membership includes grape growers, processors, wineries and representatives of academic institutions and cooperative extension organizations committed to improving the industry.

Oregon Wine Research Institute, Oregon State University - This website is a collaboration between Oregon State University and the Oregon wine industry. Resources include a Getting Started section for newcomers to the wine industry, sections dedicated to viticulture and enology, and a section listing Oregon State Extension publications and presentations on viticulture and enology.

Texas Wine Marketing Research Institute, Texas Tech University - The institute provides research and education to audiences interested in the wine and grape industry and fosters the economic development and growth of the grape and wine industry in Texas.

Other Links