A division of
Frank, Rimerman + Co. LLP CPAs
Economic Impact of Washington Grapes and Wine, 2006
Washington Association of Wine Grape Growers
February 7, 2008
Rob Morris, Senior Manager
3A division of
Frank, Rimerman + Co. LLP CPAs
What is Economic Impact?
Jobs with:• Wine, grape and grape juice products
production• Suppliers of goods and services to the industry • Selling and reselling Washington wine such as
restaurants, distributors and retailers• Wine region tourism
Plus all the jobs created when these workers spend their salaries and wages
4A division of
Frank, Rimerman + Co. LLP CPAs
What is Economic Impact?
Then we measure the revenues, wages and taxes generated by these jobs
5A division of
Frank, Rimerman + Co. LLP CPAs
The IMPLAN model is a complex input-output model of the US economy, developed in the 1980s by the US Forest Service and the University of Minnesota and updated annually
IMPLAN is the standard model for estimating US economic impacts
IMPLAN is used by morethan 1500 organizations, including the US Federal Reserve, USDA, most states and localitiesand many corporations and universities
6A division of
Frank, Rimerman + Co. LLP CPAs
What is Different in 2006 Study?
• Inclusion of Juice Grapes• Measuring Effect of Washington Wine and
Grape Industries Instead of the Effect of Wine and Grapes in Washington
• Only Including Distribution Channel Profits• Economic Impacts Beyond Washington:
– Suppliers– Wine Sales– Taxes
7A division of
Frank, Rimerman + Co. LLP CPAs
A Small Community of Primarily Family Businesses
534 wineries and 325 vineyards
Creates, directly and indirectly:
8A division of
Frank, Rimerman + Co. LLP CPAs
In Washington
Jobs for nearly 19,000 people
More than $340 million in taxes
$3.0 billion in Economic Impact for the State of Washington
9A division of
Frank, Rimerman + Co. LLP CPAs
Nationally
Jobs for 29,000 people
More than $471 million in taxes
$4.72 billion in Total Economic Impact
10A division of
Frank, Rimerman + Co. LLP CPAs
Change Since 1999 Report
Total Economic Impact $2.4 billion $4.7 billion
Estimated Juice Grape Portion - $700 millionWineries 160+ 534Winery Revenue $289 million $438 millionGrape Growers 250+ 325Farm Gate Value of Grapes $127 million $144 millionJobs 11,250 29,375Wages $350 million $850 millionState/Local/Federal Taxes $72 million $471 millionVisitors 350 thousand 1.7 million
1999 2006
11A division of
Frank, Rimerman + Co. LLP CPAs
Grape Production
• 325 farm entities
• 57,000 acres
• 316,000 tons of production
• Market value of $144 million
12A division of
Frank, Rimerman + Co. LLP CPAs
Employment
• Wineries, vineyards and
juice processors 4,185
• Tourism 2,516
• Restaurants, retail & dist.10,099
• Other direct 508
• Indirect and induced 12,067
• TOTAL 29,375
13A division of
Frank, Rimerman + Co. LLP CPAs
Wages
• Wineries, vineyards and
juice processors $89.9M
• Tourism $68.3M
• Restaurants, retail & dist.$172.2M
• Other direct $28.1M
• Indirect and induced $491.6M
• TOTAL $850.1M
14A division of
Frank, Rimerman + Co. LLP CPAs
Revenues
• Winery sales $437.6M• Gate value of grapes $144.2M• Juice sales $463.4M• Retail, restaurant & distribution $425.4M• Tourism $237.6M• Other direct $145.5M• Tax revenues $471.4M• Indirect and induced $1,544.8M• TOTAL $3,869.9M
15A division of
Frank, Rimerman + Co. LLP CPAs
Washington remains
The 2nd largest wine grape and wine producer in the US and the largest producer of juice grapes
With a growing network of suppliers, service providers and customers benefiting from the industry
16A division of
Frank, Rimerman + Co. LLP CPAs
Economic Impact – Grapes & Wine In state Nationally
• NATIONAL N/A $162,000M• California $51,800M $125,000M• Washington $3,000M $4,720M• New York $3,400M N/A• North Carolina $813M N/A• Michigan $789M N/A• Pennsylvania $661M N/A
17A division of
Frank, Rimerman + Co. LLP CPAs
Thank you.
Rob Morris
Senior Manager
Frank, Rimerman & Co. & MKF Research LLC
707-967-5338
www.mkfresearch.com