Wine industry adds sparkle to state economy
Virginia's burgeoning wine industry contributes $747 million annually to the state's economy, a newly released economic impact study shows.
That contribution represents a 106 percent increase from figures reported in the last economic impact study, which was conducted in 2005.
Virginia was home to 193 wineries in 2010, up from 129 in 2005, according to the report, commissioned by the Virginia Wine Board.
The state currently ranks fifth in the nation in the number of wineries and is the nation's fifth-largest wine grape producer.
"From beautiful new wineries starting up to more and more retail outlets and restaurants adding our wines to their shelves and menus, the growth has been very evident even to the casual observer," Gov. Bob McDonnell said in a statement.
"I congratulate our winery owners and grape growers for these achievements."
Other key findings in the study show:
- The number of full-time equivalent jobs at wineries and vineyards rose from 3,162 in 2005 to 4,753 in 2010.
- Wages at wineries and vineyards increased from $84 million to $156 million during the same time period.
- The number of grape growers climbed from 262 to 386, and the number of grape-bearing acres increased from 2,000 to 2,700.
- The amount of taxes paid to the state and local governments grew from $21 million to $43 million.
- The number of wine-related tourists visiting Virginia increased from 1 million in 2005 to 1.62 million in 2010, a 62 percent increase. Expenditures related to winery tourism rose from $57 million in 2005 to $131 million in 2010.
"The Virginia wine industry is one of the fastest-growing segments of Virginia's diverse agricultural industry," said Todd P. Haymore, secretary of Agriculture and Forestry. "Most of the investments made, jobs created, taxes generated, and tourism driven expenditures around the wine industry are in rural areas, where they are making a big impact on local economies."
Sales of Virginia wine reached a record high in the fiscal year that ended June 30 with more than 462,000 cases, or more than 5.5 million bottles, sold, an increase of more than 11 percent from the previous fiscal year.
The 2010 economic impact study was completed by Frank, Rimerman + Co., a California-based accounting and consulting firm that specializes in wine industry studies.
Copyright Richmond Times-Dispatch. Used by permission.
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