Up Up and Away: Growth of the New York Wine Industry
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1 Up Up and Away: Growth of the New York Wine Industry John Martini Anthony Road Wine Company
2 2
3 New York Wine & Grape Foundation: The Basics Created by1985 legislation during industry economic crisis Reaffirmed by 2004 Wine Market Fund legislation Purpose: Centralize and coordiate research and promotion statewide; foster industry cooperation All grapes and uses: Table grapes, grape juice, wine All regions: Now 54 counties (of 62) Funding sources: State (matching funds and wine market funds), Federal (Market Access Program), private sector (grants, program fees and dues) 3
4 Full Economic Impact of the New York Grape, Juice and Wine Industry: $4.8 Billion $6,000,000,000 $5,000,000,000 $4,000,000,000 ($billions) $3,000,000,000 $2,000,000,000 $3.4 $3.76 $4.8 $1,000,000,000 $
5 Wineries-Year Established Number of Wineries Year # Established Number of Wineries Year # Established 5
6 6
7 Wine Country Tourism Growth The number of tourist visits to wineries has multiplied 14-fold since1985 with a significant share from other states. Visitors per Year 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,439,000 2,685,000 4,137,000 4,980,000 5,290,000 1,000, ,
8 Increased Tax Revenues Since 2000, sales taxes and excise taxes from direct sales at winery tasting rooms have nearly tripled to over $8 million. This is a small portion of total taxes generated. Sales and Excise Taxes from Tasting Rooms ($millions) $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 $152,481 $2,953,500 $313,254 $6,784,680 $364,123 $8,480,000 Excise Tax Sales Tax *NOTE: Wine is the only farm product subject to excise taxes and sales taxes. 8
9 The State of New York has been a key financial partner over the years, and has received a handsome return on its investment. The grape and wine industry generates more than $4.8 billion annually in economic benefits to the state. However, the major cuts during the past few years have hampered the New York State Wine & Grape Foundation s ability to continue its successful research and promotion programs. New York State Support State Investment in Grape & Wine Industry $3,500,000 $3,000,000 $3,000,000 $3,000,000 $2,500,000 $2,500,000 $2,000,000 $2,000,000 $2,000,000 $1,500,000 $1,500,000 $1,437,000 $1,500,000 $1,000,000 $1,000,000 $718,000 $1,000,000 $500,000 $500,000 $ NYS funding $3,000,000 $2,800,000 $1,800,000 $713,000 $713,000 $713,000 % Decrease over previous 7% 36% 60% 0 0 $0 New York 2007 New York 2010 Missouri 2010 Ohio 2010 Texas 2010 Virginia 2010 State Investment per Acre State Investment per Winery $1,000 $16,000 $14,000 $800 $12,000 $600 $10,000 $8,000 $400 $6,000 $200 $4,000 $2,000 $0 Missouri 2010 Ohio 2010 Texas 2010 Virginia 2010 New York $3M 2007 New York $713K 2010 $0 Missouri 2010 Ohio 2010 Texas 2010 Virginia 2010 New York $3M 2007 New York $713K
10 Budget Cuts and Program Cuts 4 yrs ago 3 yrs ago 2 yrs ago Last Yr Current NYS Dept of Ag & Mkts $3,000,000 $2,800,000 $1,800,000 $713,000 $713,000 Wine Marketing Funds portion $2,000,000 $1,650,000 $750,000 $0 $0 Promotion $462,857 Research $237,750 Administration $12,393 Matching Funds Budget Wine Press x x x x x Winery Co-operative Advertising Program x x x Wine Competitions Program x x x x x New York Wine & Food Classic x x x x x New York City Greenmarkets Program x x x x x Pride of New York & other promotional events x x x x x Wine Trail Regional Programs-12 x x x x x Promotional Materials-glassware, bags x x x x x Wine Marketing Funds Budget WMF Concord Grape Juice x x x WMF New York Wines & Dines NYC x x WMF Epcot Wine & Food Festival x x x WMF New York Wine Month statewide x x x WMF-TQF Research programs-various x x x WMF-NY adv/greenmkt x x x WMF-Regional Branding x x x WMF-NYWCC-WXXI series x WMF-NYWCC-various educational purposes x WMF-Table Grapes x x WMF-Mkt Research x WMF-Information Databank x WMF-Fam/Media tour x WMF-Education & Training course x Research Budget Viticulture, Enology and Marketing x x x x x x=funded or partially funded programs 10
11 Basic Budget Sources State Matching Funds (Research and Promotion In-State) Private Sector Matching Funds (Research and Promotion In-State) Wine Market Funds (When available: Research & Promotion, primarily instate) Market Access Program (Export promotion only) Viticulture Consortium (Federal, Indirect and Eliminated) Special Grants (New York City Program) 11
12 Matching Funds Budget Areas Research Viticulture Enology Marketing Promotion Foundation Promotion Staff Activities Newsletters/Publications Cooperative Promotions Special Promotions Regional Programs Promotional Materials Program 12
13 NYWGF Promotion Strategy Bring the people to the wine (Tourism) Take the wine to the people (Market Promotion) 13
14 Promotion Current Program Activities Foundation Promotion Staff: Financial Development, Program Development, Program Direction and Administration, Media Relations, Export Promotion, National Campaign, Industry Training & Education, Wine Festival Coordination, Wine Month Promotion In-Store Tasting Program, Restaurant Promotion, Brochure Development, Newsletter Publishing, Industry Meetings, Miscellaneous Opportunties Newsletters/Publications: Wine Press, Uncork New York Brochure, Website 14
15 Current Program Activities Promotion Cooperative Promotions: Wine Competitions, Special events including Annual Meeting/Wine Industry Workshop, New York Wine & Food Classic, Greenmarket Winestands in NYC Special Promotions: International Restaurant Show in NYC, New Amsterdam Market event in NYC, and Pride of New York Harvest Fests in Syracuse and Albany 15
16 Current Program Activities Promotion Regional Programs: Canandaigua Lake Wine Trail, Cayuga Wine Trail, Chautauqua Wine Trail, CCVA Grape Juice Program, Cooperstown Beverage Trail, Dutchess Wine Trail, Keuka Lake Wine Trail, Lake Ontario Wine Trail, Long Island Wine Council, Niagara Wine Trail, Seneca Lake Wine Trail, Shawangunk Wine Trail, Thousand Islands Wine Trail Promotional Materials Program: Wine bag program 16
17 Current Program Activities Researcher: Weigle, Carroll, Walter-Peterson, DeGaetano Bates, Creasap-Gee Loeb, Bates, Cousins Bates, Catalano, Betts, Creasap- Gee, Davenport Martinson, Hoying, Reisch, Creasap Gee, Walter-Peterson Gadoury, Wilcox, Seem, Cadle- Davidson Study Pertaining to: Ensuring the Continued Delivery of Weather and IPM Information for Grapes Through the Network for Environment and Weather Applications (NEWA)) Evaluation of vineyard mechanization options in Concord Growing Phylloxera-susceptible grapes on their own roots in cool climates: Costs & benefits Spatial measurement of Canopy, Yield, and Juice soluble Solids for Efficient Concord Production Delivering Timely Information on Vine Cold-Hardiness to NY Grape Growers in Investigations of pathogen biology & ecology: The raw materials for improved management of grapevine powdery mildew 17
18 Current Program Activities Researcher cont. Weigle, Timer, Hed, Martin, Ngugi Landers, Wilcox, Muza, Walter- Peterson, Weigle Creasap-Gee, Bates, Striegler, Walter- Peterson Saunders, Timer, Muza, Weigle Reisch, Mansfield, Bordelon, Dami, Fiola, Maier, Nail, Read, Sabbatini, Shoemaker, Striegler, VandenHeuvel Zhong, Bates, Reisch Study Pertaining to: Evaluation of the Effects of Disease and Insect Management Strategies in High Brix Niagara Grape Production The development of a precision sprayer for precision viticulture Development of berry growth curves in hybrid & Vitis viniferag rapes to enable crop estimation & crop adjustment in NY and MO Efficacy and Cost Effectiveness Evaluations of New and Commonly Used Insecticides for the Control of Grape Berry Moth Breeding & evaluation of new wine grape varieties with improved cold tolerance & disease resistance Improve Concord grape variety through mutation discovery 18
19 Current Program Activities Researcher cont. Bates, Weigle, Martin, Morhead, Catalano, Joy, Laurie Lakso, Eissenstat, Dunst, Bates, Creasap-Gee Wise, Tarleton Enology Mansfield Martinson, Mansfield, et al Mira de Orduna Study Pertaining to: Developing a Divided Trellis System for Use with Standard Trellis Equipment on concord Grapevines Hills & berms for heavy soils - effects in vine performance Evaluation of alternative pest & weed management programs Defining Finger Lakes Riesling Typicity: Sensory and Volatile Determinants Continuing Cellar Dweller and Veraison to Harvest Newsletters and Fruit Sampling in 2011 Reducing Yeast Stress and the Incidence of Sluggish/Stuck Fermentations 19
20 Current Program Activities Researcher cont. Mira de Orduna Mira de Orduna Sacks Sacks Study Pertaining to: Control of Yeast Acetaldehyde Formation During Alcoholic Fermentations Composition of Enological Nutrients and Their Effect on Malolactic Fermentation Developing and Applying Analytical Methods for Measuring "Positive" Sulfur-Containing Aroma Compounds in Wines Identifying Elemental Sulfur Degradation Products Responsible for the Re-emergence of Hydrogen Sulfide (H2S) Off-aromas Post- Bottling NYS Wine Analytical Laboratory & Data Bank 20
21 New York s New Business Climate Governor Andrew Cuomo Gets It! Governor's Wine, Beer & Spirits Summit in October 2012 Immediate regulatory changes Additional legislative changes $1 Million+ Promotional Campaign Governor s Cup Wine Tour New production efficiencies and marketing opportunities It s a New Day in New York! 21
22 Quality Integrity Unity 22
23 Diversity is our Strength. Unity is our Power. 23
24 Diversity is our Strength- Unity is our Power Diversity Unity Quality Productivity Social Responsibility 24
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