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Economic Impact Of Napa County Wine Industry Valued At $9.5 Billion
Vintners from California's Most Valuable Wine Region Disclose Findings of New Report
6/9/2005 - Napa, Ca - The Napa Valley Vintners (NVV) today unveiled new research valuing the full economic impact of wine on the Napa County economy at $9.5 billion annually. This number was the centerpiece of a long-awaited report created by MKF Research (MKF) and co-commissioned by the trade association and The Jack L. Davies Napa Valley Agricultural Land Preservation Fund (The JLD Fund).
"Napa is one of the state's smallest counties, producing roughly 4% of California's wine by volume," states Vic Motto, partner with MKF "But the Napa Valley accounts for 21% of the total economic impact of California wine - a $45.4 billion industry."
"The sales revenues of Napa appellation wines exceeded $2.3 billion in 2002," said Linda Reiff, executive director of the NVV, "That's close to 27% of the sales value of California wines - and we believe that speaks to the quality of our product, and the significance of our region. Clearly the Napa Valley name speaks volumes in a global marketplace."
In addition to providing insight into the value of Napa Valley wines in the marketplace, the research findings offer a clear indication that wine industry jobs and revenue play a major role in the health of the Napa County economy. The wine and vineyard sector directly, and indirectly, provides nearly half of the County's total employment, generating wages of nearly $1.4 billion; and, along with related activities, generates more than $800 million in taxes. Additionally, the industry attracts a continuing flow of significant capital investment in the county, and the area escaped the worst effects of the Bay Area's 2001-2003 economic recession.
"The Napa Valley wine industry is firmly committed to protecting the natural environment and preserving an agrarian way of life in our community," said Hugh Davies, son of the late Jack L. Davies and a member of the board of directors of the fund that bears his father's name. "The nine percent of our County that is planted in grapes is a pretty critical part of what makes this such a great place to live and work, and our entire community benefits when we opt to preserve our rural character and protect our agricultural land and open spaces."
A guiding principle of Napa County land use policy is that agriculture is the highest and best use of the land. While limited by careful regulation, the growth in brick-and-mortar wineries and vineyard expansion represents a multi-billion dollar inflow of capital to the County. In the last ten years, the value of the winegrape crop in Napa County jumped from $167,682,000 to $379,930,000 - an increase of 127%, while planted vineyard acreage only increased by 19% -- or 5,917 acres.
The Napa Valley Vintners is a professional nonprofit trade organization. Its 270 member vintners are committed to the future of Napa Valley through the preservation and enhancement of its land, wine and community.
Read the complete Economic study (PDF).
Contact: CONTACT: Terry Hall Direct: 707-968-4217 thall@napavintners.com
