California wine is an ‘economic engine’, despite challenging economy

By Rachel Arthur contact

- Last updated on GMT

California's beauty helps attract 24m tourist visits a year. iStock/b33photography
California's beauty helps attract 24m tourist visits a year. iStock/b33photography

Related tags: Wine, California wine, Wine institute, California

The California wine & winegrape sector, along with associated businesses, makes a total economic contribution of $58bn per year to the state’s economy, according to a report. Meanwhile, $114bn is contributed annually to the US economy.

Commissioned by Wine Institute and the California Association of Winegrape Growers, the report on economic impacts of the industry also shows that California wineries and vineyards directly and indirectly generate 325,000 jobs in California and 786,000 jobs across the nation.

The report shows 17% growth in impact across the state of California (from $49bn to $58bn) and 19% in national impact (from $96bn to $114bn) in the past seven years.

Wine Institute President & CEO, Robert P. (Bobby) Koch, said: “California wine is an economic engine for our nation. Our predominantly small, family-owned businesses create jobs, pay significant taxes, and give back generously to charities and communities.

“These are significant accomplishments when the strong dollar and pressure from imports make the US the most competitive wine market in the world, and we continue to face the threat of increased taxes and regulation at every level of government.”

California also attracted close to 24m tourist visits in 2015.

The state is the fourth largest wine producer in the world.

The report, titled ‘The Economic Impact of California Wine and Grapes 2015’, measures the full impact of the wine and grape industries in terms of employment, wages, taxes and tourism. 

california wine infographic

Related topics: Markets, Beer, Wine, Spirits, Cider

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