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Understanding the Massive Economic Impact of the Texas Wine Industry

 

The Texas Wine and Grape Growers Association, partnered with the Texas Wine Marketing Research Institute at Texas Tech University, commissions an Economic Impact Study of the Texas wine and grape industry. Since 2005, this study has proven to be valuable information in both growing and marketing the industry as well as providing statistics for legislative leaders in Austin and Washington DC.

This year, WineAmerica, the national organization of American wineries, commissioned a leading economics firm, John Dunham & Associates of New York City, to conduct a national economic impact study including a state-by- state breakdown. What does this mean for Texas?

  • For the first time in many years, the Texas industry can see where we stand compared to other wine and grape states as well as the overall U.S. industry.
  • The Economic Impact study was funded by another industry source thus saving the Texas Wine and Grape Growers Association and the Texas Wine Marketing Research Institute thousands of dollars.
  • The study can be released 6-12 months earlier than expected.
  • The methodology used for the study is broader and more comprehensive than what has been commissioned in the past 10 years.

This study looks at three tiers of the industry: (1) Vineyards that grow the winegrapes and wineries that produce the wine; (2) Wholesalers responsible for transporting and storing the wine; and (3) Retailers, both on-premise and off-premise. In addition to the three tiers of the industry, the study calculates the economic contribution made through the spending of
tourists, the number of jobs, wages paid, taxes paid, suppliers who support the industry and industries supported by spending. The results show what economic activity that started in one part of the industry affects many other activities in other areas.

What is the bottom line for Texas? Well, the Texas Wine Industry boosts the Texas Economy by $13.1 Billion!

How can that be when Texas showed an economic impact of $2.27B in 2015? How can this big increase occur in two years? Understanding the methodology of this study compared to studies in the past answers most of that question. Past studies have only focused on the Direct Economic Impact. The 2017 Economic Impact Study brings in the Direct Economic Impact along with the Supplier Impact and Induced Economic Impact to create a much more comprehensive look at the industry.

All vineyards and wineries throughout the U.S. owe a tremendous gratitude to Jim Trezise, Tara Good and Michael Kaiser at WineAmerica for their support of the industry and their foresight in knowing the importance of this Economic Impact Study.

For more information on the study and WineAmerica membership, visit the organization’s website at www.wineamerica.org.

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