Virginian wine industry proves big boost to local economy
Virginia is reaping the benefits of its burgeoning wine industry, with a recent study showing that its economic impact has increased by 82% in five years, contributing more than $1.37bn to the state’s economy in 2015 alone.
This is according to Governor Terry McAuliffe’s office, which reported last week that the study, the 2015 Economic Impact Study of Wine and Wine Grapes on the Commonwealth of Virginia, had found a substantial growth in the number of wineries, number of employees and the amount of money contributed to the state’s economy.
“Since the beginning of my administration, one of our top agriculture goals was to make Virginia the preeminent East Coast destination for wine and winery tourism, and I am pleased our efforts are helping make this a reality,” said McAuliffe.
“The Virginia wine industry has continued to see tremendous growth over the last five years, which has bolstered tourism across the Commonwealth. This new study shows that the growth is being driven by small wineries, which demonstrates that the increased rural economic development is truly beneficial to local communities.”
Virginia wine sales reached a record high in the 2016 tax year, with more than 6.6 million bottles sold, a 6% increase over the previous year.
Williamsburg Winery is just one local producer which has enjoyed surging sales in recent years.
“The industry has really hit a major milestone in the last couple of years,” confirmed Williamsburg Winery president and CEO Patrick Duffeler.
There was a 35% increase in the number of wineries in Virginia, from 193 in 2012 to 261 in 2015; a 73% increase in employment during the same period and an 87% increase in wages from jobs at wineries. The grape-bearing acreage also increased during the five-year period, up by 22%.
However, there has been a decrease in the number of grape growers, indicating a consolidation of grape acreage under fewer growers. “More grape acreage under fewer growers will help reduce the over cost of growing the grapes and provide for strong economic viability for the industry, said McAuliffe.
But it’s not all about volumes, according to Duffeler. “What I’m most proud of, is that qualitatively the industry has also turned a corner,” he said. “The quality is really our driving force, as well as the driving force for our other colleagues in the industry.”