Wine

Wine Industry Profile

Updated June 2018

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

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

Links Checked June 2018