News

Californian wine contributes US$170.5 billion to US annually, report finds

02 December 2022 By Louis Thomas

A new report commissioned by Wine Institute and the California Association of Winegrape Growers (CAWG) has revealed that the state’s wine sector and allied businesses deliver US$170.5 billion annually to the US economy, a 49% rise on the level from six years ago.

The report also found that the industry contributes US$73bn in annual economic activity, a 27% increase on the figure from six years ago, and US$7.9bn in taxes to the state.

Additionally, it was revealed that Californian wine directly and indirectly employed 1.1 million people across the US, and 422,000 specifically in California. Wine tourism in particularly was proving to be fruitful, with 25.2 million wine-related tourist visits annually to California wineries.

Wine Institute president and CEO Robert P. Koch said: “California wine is an economic force across our nation, proving once again that it is the ultimate value-added, sustainable agricultural product. Our predominantly small, multi-generational family-owned businesses support communities everywhere by growing jobs, generating economic activity, tourism, and tax revenues and generously contributing to charities.”

Koch cited the Craft Beverage Modernization Act (made permanent in December 2020), which reduced federal excise tax rates for wineries, as a factor that has contributed to the boom.

CAWG interim president Natalie Collins added: “The vineyards of California are not only iconic postcard images of our state’s splendour, but also cradles of economic growth and pillars to many communities around the state. The report offers a testament to the hard work and commitment of California’s winegrape growers and vintners in building and preserving a truly sustainable economic driver.”

There is plenty to be optimistic about in the Golden State, with the quality of the 2022 vintage expected to be “off the charts”.