Washington Wine Commission

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Washington Wine CommissionJohn
BookwalterChairmanAugust 27, 2009
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Washington Wine Industry

• Phenomenal Growth
• 19 wineries in 1981,650 wineries today
• 147,436 tons harvestedin 2008
• 8.5 million casesproduced in 2008
• 11th AVA designatedin April 2009
• 4.7 billion impact tothe national economy
• Growing national andinternational acclaim

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Washington Wine Industry

• Record Acclaim
• 277 wines received 90 points from Robert
  Parkers Wine Advocate (2008)
• 123 wines awarded 90 points by Stephen Tanzers
  International Wine Cellar (2008)
• Long Shadows Vintners named Winery of the Year
  by Food Wine Magazine (2007)
• Bob Betz named Winemaker of the Year by Sunset
  Magazine (2007)
• 4 Washington wineries named to Top 100 in the
  World by Robb Report
• Andrew Will Winery
• DeLille Cellars
• Leonetti Cellar
• Quilceda Creek

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Washington Wine Industry

• Strong Sales (in spite of economy)
• National Trends
• Overall, wine continues to outperform beer and
  spirits Americans have finally discovered
  wine
• Domestic wines are outperforming imports (France
  down 21)
• Growth in wine sales continues to be led by
  premium segments (9-12, 12-15, and 15-up all
  near double-digit growth), although trend has
  slowed somewhat with economy. Washington State
  is considered a premium region.
• Riesling is the fastest growing major varietal
  (up 24.7 over last year). Washington State is
  one of the worlds leading producers of
  Riesling.

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Washington Wine Industry

• Strong Sales (in spite of economy)
• Local Trends
• Washington State is the hottest wine region in
  the country sales by value up 19 over last
  year (Oregon down 3.7, California up 6.5),
  sales by volume up 9.5 over last year (Oregon up
  8, California up 2).
• Washington State currently has a 4 share of the
  total wine market and a 7 share of the
  domestic wine market in the United States,
  roughly equivalent to Napa Valley.

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Washington Wine Industry
The Bottom Line

• Annual economic impact of 3 billion
  in-state, 4.7 billion nationally in 2006 up
  from 2.4 billion in 1999

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Washington Wine Industry
Direct Impacts

• Revenues
• 436 million in 2006, up from 289 million
  in 1999
• Taxes
• 145 million in-state, 58 million to other
  states, 269 million federally

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Washington Wine Industry
Indirect Impacts

• Employment
• 579 million in payroll supporting 19,000
  jobs, up from 350 million and 11,000 jobs in
  1999
• Wine Tourism
• 238 million in 2006, up from 19 million in
  1999 a 1,157 increase

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Washington Wine Industry

• Wine Tourism Booming
• According to TIA, 17 of leisure travelers have
  engaged in wine and culinary travel 27
  million people
• Washington State tourism is a 15 billion
  industry
• Over 2 million people visit Washington wineries
  annually
• Washington is among the top 15 states for
  food-related travel and the top 10 U.S.
  destinations for wine-related travel
• Wine tourists typically stay longer (3.4 days)
  than average and spend more money in an area.
  More than 39 plan repeat visits
• Washington wine country has seen a 29 increase
  in overnight visits in 3 years
• Visitors to Washington wineries have a higher
  than average household income 98,714 in 2006

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Washington Wine Commission

• Represents
• All bonded and licensed wineries in Washington
• All wine grape growers in Washington

Mission Raise positive awareness of the
Washington wine industry and generate greater
demand forits wines
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Washington Wine Commission
Board of Commissioners

• John Bookwalter, ChairJ. Bookwalter Winery
• Kent Waliser, Vice ChairSagemoor
• Peggy Patterson, TreasurerHoodsport Winery
• Ted BaselerSte. Michelle Wine Estates
• Dick BousheyBoushey Vineyards
• Glenn CooganAscentia Wine Estates
• Peter DowCavatappi Winery
• Patricia GellesKlipsun Vineyards
• Eric HurlburtWSDA
• Mark LevineYoungs Market Company
• Steve NewhouseUpland Vineyards
• Rick SmallWoodward Canyon Winery
• Jay SoloffDeLille Cellars

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Washington Wine Commission

• Six Strategies
• Increase consumer demand through direct marketing
• Reach out to the wine trade
• Strengthen the commitment and unity of the
  industry
• Increase awareness of the industrys economic
  impact
• Foster viticultural and enological research
• Encourage professional staff development

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Washington Wine Commission

• Key Metrics
• Increased consumer awareness of Washington wines
• Increased media coverage of Washington wines
• Increased sales of Washington wines in target
  markets
• Increased traffic to the Wine Commission website

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Local Consumer Events

• Branded tastings promoted as destinationevents
• Taste Washington!
• Held annually in Seattle, Spokaneand targeted
  markets
• Educational Seminars
• 20something
• Millennial-targeted event heldtwice annually in
  Seattle

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Local Trade Outreach

• Washington Wine Months
• March Taste Washington Wine Month
• Restaurant and Retail Promotions
• August Washington Wine Month
• Retail Promotions
• Washington Wine Restaurant Awards
• Taste Washington Seattle weekend

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National Consumer Marketing

• National branding campaign
• Advertising
• Media Outreach
• Trade and Consumer Tastings
• Target Markets
• Tampa Bay
• Austin
• Denver
• Phoenix
• Chicago

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National Trade Outreach

• Road TripWashington Wine
• October 4 - 8
• 40 high-level national buyers
• 50 Washington wineries and vineyards
  participating

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International Marketing

• Target Markets
• Quebec
• Japan
• United Kingdom and Ireland
• Japanese Deluxe Tour
• Trade incentive program
• Washington Wine Experience
• International trade FAM tour
• London Wine Fair
• Montreal Trade Tasting

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Commitment to Research

• 5 of Commissions annual budget
• Estimated 125,000 in 2009
• Proceeds from charitable events
  directed to education and research
  through the Washington Wine Education
  Foundation

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Looking ahead
Now what?

• Washington still only has a 7 share of the
  domestic wine market
• Projecting a 5 increase in production each
  year over the next 5 years
• Striving for a 10 share of the domestic 750ml
  market by 2011
• Must address serious workforce, infrastructure
  and marketing issues

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Looking ahead
How will we get there?

• Position wine industry as an attraction/asset
  for business development and recruitment
• Increase emphasis on wine tourism by leveraging
  state and local tourism efforts
• Improve tourism infrastructure (e.g.
  signage, lodging, dining)
• Reform state and federal liquor laws and
  work with other regulatory bodies
• Raise cross-functional industry knowledge
  (e.g. business finance, business operations,
  marketing)
• Continue to invest in and grow research and
  education programs

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Washington Wine Commission
Questions or comments? Thank you!