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Economic value of Lodi wine industry is $5 billion, study says
75 wineries in Lodi appellation employ nearly 15,000 people, pay millions in state and federal taxes
The full economic value of the Lodi area wine industry is $5 billion, according to a study released today.
The study, commissioned by the Lodi District Grape Growers Association and the Lodi Woodbridge Winegrape Commission, found that local wine, vineyard and associated industries employ nearly 15,000 people and account for more than $493 million in wages.
Amy Blagg
"It really shows how much our industry has changed and how much opportunity there is," said Amy Blagg, the executive director of the growers' association.
In 1991 there were eight wineries in the area, and today there are 75.
Blagg said the rapid development of Lodi's wine industry shows how valuable the business is to the region's and state's economy.
The Napa firm, Stonebridge Research Group, authored the report that found the wine industry's economic value extends far beyond just wine to indirect and direct benefits to other industries. According to the report, "indirect effects" include wineries purchasing electricity or gasoline or contracting for janitorial services, and "induced" effects are how wine industry workers spend their wages.
These indirect and induced effects accounted to more than $300 million.
Wine industry's economic "ripples"
Revenue (list does not include all revenue sources)Winery sales: $1,654,414,834
Winery direct sales: $403,754,613
Retail and restaurant sales: $28,300,121
Tourism: $409,497,600
Winegrape sales: $233,114,673
Vineyard development: $295,200,000
Winery construction: $19,498618
Indirect effects: $466,359,908
Induced effects: $441,978,647
Total revenue: $4,507,280,593
Wages (list does not include all wages)
Winery employees: $42,052,760
Vineyard employees: $77,975,720
Tourism: $17,759,114
Vineyard development: $35,295,000
Indirect: $158,254,807
Induced: $144,169,381
Total wages: $493,394,988
Total employment
Winery: 1,359
Vineyard: 3,844
Tourism: 698
Vineyard development: 1,875
Vineyard materials: 14
Distributor: 1
Labels: 5
Grapevine nurseries: 10
Retail: 105
Restaurants: 230
Trucking: 175
Winery construction and engineering: 130
Wine labs: 2
Professional services: 95
Indirect: 3,186
Induced: 3,259
Total: 14,988
Source: The Economic Impact of Wine and Grapes in Lodi 2009, Stonebridge Research
Other findings included:
The survey reviewed the entire Lodi appellation, which covers a wide area from Deer Creek near the El Dorado and Sacramento county line, to the Delta, along the foothills and down to Farmington east of Stockton.
The Lodi appellation contains about 100,000 acres of vineyards tended by 750 growers, according to the growers' association.
Blagg said the appellation has been well poised to take advantage of changes in consumer drinking habits.
As more wine drinkers have begun to shy away from pricier wines in light of the economy, they have moved into the $10-$15 range, where they'll find many of Lodi's wines.
"Then they can find Lodi has quality wines," Blagg said.
The report notes that the Lodi wine industry has a significant "multiplier" effect as wine workers use their wages to purchase other goods and services.
"This report confirms that the grape and wine industry plays a vital role in the overall economic health of the Lodi area," said Kelly Brakel, the grower association's board president.
Brakel added that he hopes urban residents will place a greater value on the wine industry's investment in light of its contribution to the economy.
Contact City Editor Andrew Adams at andrewa@lodinews.com.
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Lodian wrote on Jun 21, 2009 12:46 PM:
Lodian wrote on Jun 20, 2009 1:00 PM:
Lodian wrote on Jun 20, 2009 10:49 AM:
Cogito wrote on Jun 19, 2009 9:56 PM:
Cogito wrote on Jun 19, 2009 9:53 PM:
Lodian wrote on Jun 19, 2009 9:33 PM:
Rhodie wrote on Jun 17, 2009 7:50 AM:
I have no doubt that the wine industry is not only strong in Lodi but growing fast. Tourism is just one of my hot buttons and I wanted to at least voice fo anyone who was interested a perspective on the numbers and show the possibilities for the future.
Lodi definitely deserves a national reputation outside of a CCR song so unless we are all willing to build "FamilyLand" the biggest family fun center in northern Cal. then the wine industry is a great venue for that reputation. I guess we could go cheaper and build the ultimate fighting robot arena and draw all the tech-heads here. I know my son would love that. "
Observer wrote on Jun 17, 2009 6:37 AM:
Rhodie wrote on Jun 16, 2009 10:18 PM:
The reason to care is the way advertising is spent. Tourism and local consumers are different beasts when it comes to marketing. Locals are looking for something local, something that gives them a sense of pride for their area as well as supporting local business and good taste. A tourist is coming or an experience, something they can't find where they are at and are looking for. Look at the gambling industry. People will drive hours past closer casinos to get to the one that offers them the best experience. The same is true for tourism. If a study is skewing the numbers to show that more tourism is happening than is really going on then it is a disservice to the local industry. Over inflated number (or misappropriated credit for sales) could cause some wineries to fail to capture potential tourism $$. Especially when competing against the established big name of Napa valley. I had family fly out from Michigan who wanted to see Napa valley. They had no idea of Lodi wines. That's why I care where they come from. "
Observer wrote on Jun 16, 2009 9:23 PM:
tjp80 wrote on Jun 16, 2009 8:50 PM:
Rhodie wrote on Jun 16, 2009 8:38 PM:
Rhodie wrote on Jun 16, 2009 8:28 PM:
It looks great. I hope we can hear about it's success in the future. I didn't see if there was any fine dining associated with it or if catering is brought in. The setting looks great for a really nice romantic dinner location with both indoor and outdoor dinning. I can see the motto now, "dinner, not just a meal but an experience".
I am going to forward it to my wife's office and hopefully they can plan something there. "
tjp80 wrote on Jun 16, 2009 6:54 PM:
Rhodie wrote on Jun 16, 2009 4:33 PM:
Curtailing into that, King estate winery http://www.kingestate.com/ also had quite a weekend picnic set up as well. On nice days there would be dozens of families enjoying the garden area and then participating in the wine tours or their top notch restraunt.
The restraunt was really good and a real draw for people to brng out of towners even from a distance. "
Rhodie wrote on Jun 16, 2009 4:19 PM:
Without knowing the actual numbers it would be difficult to give a realistic "what I would do is' scenarios, BUT...
Never being one to leave my opinion out here would be my plan to grow the tourist side of Lodi wine industry (and all this is would require a thorough market study of needs): First, as I already said the wedding industry can be a huge side market for wineries. A small winery with a suitable garden area, reception hall and parking could be booking several weddings. This would have to be in a united effort with the tourism board to start promoting heavily the Lodi area as the central/northern Ca. wedding destination. Where I came from the local small wineries were usually booked between 20-35 weekends a year. Combine that with the local revenue from out-of towners staying in local hotels and I suspect that there would be a substantial boon to the wine tourism income.
Cont. "
dogs4you wrote on Jun 16, 2009 2:58 PM:
Your right concerning charging by the year, I paid $ 2.00 for a marriage licence 47 years ago, I`d call that the live in kind. "
lodi boy wrote on Jun 16, 2009 2:36 PM:
vintners replied:
"Robust, deep, velvety finish with hints of plum and money." "
sam wrote on Jun 16, 2009 2:29 PM:
They just charge by the year rather than the hour... and are more of the "live in" kind. "
dogs4you wrote on Jun 16, 2009 2:00 PM:
commonsense1 wrote on Jun 16, 2009 1:38 PM:
Cogito wrote on Jun 16, 2009 1:31 PM:
G. Wiman wrote on Jun 16, 2009 1:08 PM:
Rhodie wrote on Jun 16, 2009 12:42 PM:
It was fun in freshman year Intro to Recreation Tourism Industries when we had the entire class debating on who a tourist really was and how they could be defined. Which is the point of my objection; to miscatagorize WHO is shopping at the wineries distracts real marketing efforts from being aimed at the right niches. "
Cogito wrote on Jun 16, 2009 11:42 AM:
journey wrote on Jun 16, 2009 8:57 AM:
Cogito wrote on Jun 16, 2009 8:34 AM:
Rhodie wrote on Jun 16, 2009 8:21 AM:
A "nuber"
A person that has perma-fried their brain through either drugs or **alcohol**. Stems from the latin root numer, meaning number, shows that an individual has destroyed a large number of brain cells.
And now you know, and knowing is half the battle. I expect all of you to acuratly use 'nuber' in future discourse. "
Rhodie wrote on Jun 16, 2009 8:19 AM:
Rhodie wrote on Jun 16, 2009 8:17 AM:
Wages=Tourism: $17,759,114
Employment=Tourism: 698
I would be interested in seeing the behind the scene numbers on this. The first and most important would be what did the study call a tourist? I've read studies where a tourist was considered anyone more than ten miles away, that would mean most of Stockton and our surrounding neighbors are "tourists". And I suspect this is the largest slant in the tourism numbers. And these local tourist probably account for most of the sales. Consider that even as a Lodi resident and the 10 mile tourist line, I would be considered a tourist buying wine in Lockford. I think there is some puffin g of the numbers here.
the other hand would be the employees. I can see each winery probably employs a couple of hosts to do the wine tasting and manage the store front, and then there is the possibility overnight needs (where I came from weddings at wineries was a big deal and accomidations were made + there is the possibility of business conferances drawn by the wine industry) so no complaints about those nubers. "
t jefferson wrote on Jun 16, 2009 8:02 AM:
This type of thing happens when you wake up early in the morning and see things before everyone else.
Anything else you would like to critize? As ususal go after the messanger and not the message.
After reading the sidebar I stand by my original assertion, doubt "studies" done by those who benefit most. Read the stats, most of the "Benefit" is indirect and not directly attributed to this area. The 1.5 billion in wine sale I bet is Retail WW not wholesale price, Oh forget it, economics is over your head so Yea Yea Yea, Lodi is the greatest wine growing place in the world. Don't worry that the city is broke and unemployment is over 10%..... "
T & C wrote on Jun 16, 2009 7:55 AM:
wtf wrote on Jun 16, 2009 7:42 AM:
GO LODI!!!! "
jbhiker wrote on Jun 16, 2009 7:17 AM:
t jefferson wrote on Jun 16, 2009 6:17 AM:
Couple of questions, how far do the "related industries" go and how much of this number do they count for.
What was the offset industriy? This land was used for something prior to being used to grow wine, so what was lost.
Who are all these workers? I would imagine the bulk of them are field workers.
What is the scope of the tourist. Just the Lodi area or all of CA?
Kind of a limited, gotcha article without more information.
Heck I can buy a candy bar for 50 cents and claim 100 million in economic activity with "Related industries" "
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