WASHINGTON, D.C. — The United States wine, grape and grape products industries contribute more than $162 billion annually to the American economy, according to a comprehensive study by MKF Research LLC of Napa Valley unveiled on Capitol Hill by the Congressional Wine Caucus on Jan. 17. The Congressional Wine Caucus is a bipartisan, bicameral coalition of U.S. Representatives and Senators with an interest in the grape and wine industry, and currently includes 182 members.

This study uses a standard and widely used methodology which includes direct, indirect, and induced economic impact in order to present the full picture. The IMPLAN model developed by the U.S. Forest Service and University of Minnesota is used by many companies around the world as well as government agencies such as the Agricultural Statistics Service, Economic Research Services, and Federal Reserve Bank.

The comprehensive study, titled “The Impact of Wine, Grapes and Grape Products on the American Economy: Family Businesses Building Value”, measures the full economic impact of the grape, wine, grape juice, table grape and raisin industries in terms of employment, agricultural statistics, product revenues, taxes, and many other indices. Included in the study are impacts from the grape, wine, grape juice, table grape and raisin industries, the first time all grape products have been measured in the same study.

“This landmark study confirms what we have known intuitively for a long time,” said Congressman Mike Thompson of St. Helena, CA, co-chair of the Congressional Wine Caucus. “Grapes, wine, and other grape products are truly an economic catalyst with tremendous growth potential in all 50 states. Policymakers can maximize these economic benefits by supporting legislation that enhances the wine and grape-product industry. Our support will ensure that this all-American industry continues to produce superior products and provide a strong contribution to our economy.”

Among the key findings:
Employment: 1.1 million full-time equivalent jobs
Agriculture: 23,856 grape growers, 934,750 grape bearing acres, $3.5 billion in farm gate grape sales
Wine Industry Direct Impact: 4,929 wineries in 2005, up from 2,904 in 2000, a 70 percent increase in five years; wineries now in all 50 states; $11.4 billion in winery sales revenues
Wine Industry Value Added: $2.7 billion in distributor share of American wine revenue; $9.8 billion in retail and restaurant share of American wine revenue; 27.3 million wine-related tourist visits; $3 billion estimated wine-related tourism expenditures.