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Economic impact of Napa County wine industry nearly $11 billion; survey shows sales holding up

ST. HELENA, Oct. 29, 2008 [UPDATED 4:45 p.m.] – The wine business has a $10.9 billion-a-year economic impact on Napa County when revenue, taxes, employment and vendor sales and services are considered, according to the new economic-impact report released today by the Napa Valley Vintners.

The impact of the local wine business rose to $15.2 billion for the state and $42.4 billion for the nation, according to the study by Napa-based Stonebridge Research for trade group.

The economic impact to Napa County increased 15 percent from the last such study in 2005, which was based on 2002 data. The latest study uses 2006 data, which Stonebridge said was the most recent comparable information, in the commonly used IMPLAN model for gauging direct, indirect and induced economic effects.

The $10.9 billion in county economic impact included $4.1 billion for wine sales, $469 million in sales of grapes and $72.9 million in charitable contributions.

Wine businesses in Napa County generate 231,000 jobs nationwide, including 39,900 in the county and another 29,700 elsewhere in the state.

Amid concerns about the economy and consumer spending, a majority of Napa County wineries said sales were steady or increased through September compared with 2007, according to results from a poll by St. Helena-based Napa Valley Vintners.

Most of the 60 wineries sampled from among the group’s membership of 330 reported sales for the first three quarters were even with the same time last year, with some reporting an increase and a minority reporting a decrease in sales, according to Executive Director Linda Reiff.

"Our data show that tasting room sales are up," she said.

She made the comments during a teleconference this afternoon on a new study of the economic impact of Napa County wine. She said the sample included a representative mix of large and small production and a variety of bottle prices. The association plans to poll its members again in mid-November on October sales.