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American wine economy worth $220 billion

WineAmerica, the National Association of American Wineries, has measured the national economic impact of the wine industry across 50 states and found that it will generate US$219.9 billion in 2017.

While wine-focused economic studies have been carried out in individual states, this is the first detailed analysis of all America as one nation.

The study was conducted by John Dunham & Associates of New York, takes into account 50 states, because wine is produced in every one, from Alaska to Florida and Wyoming, as well as Washington, Oregon, New York and California – which accounts for 85%  of the country’s total output.

“Wine is an all-American art form produced in all 50 states, and the ultimate value-added product which preserves precious agricultural land, provides American jobs, attracts tourists, generates taxes, and enhances the quality of life,” said WineAmerica President Jim Trezise.

“We have long known intuitively that our industry’s economic impact was enormous, but it’s nice to now have hard numbers which illustrate that. As our industry grows, so will our many contributions to the American economy.”

The study measured direct, supplier, induced, and induced impact, including jobs, wages and taxes at all three levels.

Direct impact refers to the jobs and wages directly attributable to a winery, as well as the money generated by tourism spending during winery visits.

“The wine industry is a major magnet for tourists and tourism-driven expenses,” the report states. “America’s “wine country” regions will generate 43 million tourist visits and $17.7 billion in annual tourism expenditures, benefiting local economies and tax bases.”

Supplier impact refers to the goods and services the winery purchases from other industries, such as rent, corks and consultants, as well as output created by wine retailers and wholesalers. Induced impact refers to the income received by the direct and supplier impacts and re-spending by employees recirculated across the economy.

Of the total impact – $219.9bn – the American wine industry’s direct impact is $84.5 billion, the supplier impact $58.8 billion, and the induced impact $76.6bn.

Overall, the American wine industry provides nearly one million direct jobs (998,496) and over $33.5bn in annual wages. When supplier and induced figures are included, the number of jobs supported by the wine industry rises to 1,738,270 jobs and $75.8bn in wages.

“The American wine industry is a major economic engine, generating investment, jobs, tourism, taxes, and ancillary benefits to suppliers and local communities across the nation,” added lead analyst John Dunham. “The production, distribution, sale, and consumption of American wine benefits many sectors of the United States economy.”

Overall, the American wine industry was found to generate a total of $36.5 billion in taxes, including more than $19 billion to the federal government and $17.4 billion to states and localities.

Currently, there are 10,236 winery facilities across all 50 states, with grapes grown on 677,629 acres of vineyards in 49 states.

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