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Wine economics and policy comments Cal-Med Consortium Dan Sumner.

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1 Wine economics and policy comments Cal-Med Consortium Dan Sumner

2 U.S. Wine Industry Wine: Highest-valued finished agricultural product (for CA). Wine in US: $16.5 billion –2005 retail value of US wine market: $26 billion Premium wine (>$7) : –Shipments increased by 13% –Accounts for 35% of case volume –66% of winery sales revenue

3 U.S. Wine Industry (cont) Everyday wine (<$7): –Shipments decreased by 2% –Account for 65% of volume –34% of winery sales revenue 4 th largest wine-producing nation.

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7 Wine & Winegrape Producer Organizations WineAmerica: Wine producer organization representing more than 800 members in 48 states. Winegrape Growers of America (WGA): Lobbying arm of the national winegrape industry. The Wine Institute: Represents 975 California wine producers and affiliated businesses. California Association of Winegrape Growers (CAWG): Represents California winegrape growers.

8 WineAmerica’s Priorities A national vintners association focusing on –Immigration Reform (AgJOBS) –Specialty Crop Grants –EAT Healthy Specialty Crop Bill –Small Producer Credit –Value-Added Grant Program

9 Winegrape Growers of America’s (WGA) Priorities AgJOBS Relief for growers hit by Pierce’s Disease Funding for research into pest & disease prevention Winegrape Research programs International Trade Issues Farm Bill Priorities Repeal of Estate Tax 2007 Agricultural Appropriations Bill

10 The Wine Institute’s Priorities Interstate Shipping Laws Labeling Advertising Standards International Trade Sustainable Winegrowing Practices Reduction of EU subsidies Immigration reform (AgJOBS)

11 California Association of Winegrape Growers’ (CAWG) Priorities Funding for Viticultural Research Reform of estate tax laws Prevent misleading grape origin and varietal information on wine labels Opposed Global Warming Solutions Act Opposed bill requiring Farm Labor Contractors to disclose to employees the names and addresses of legal entities securing the services of the FLC. Support immigration reform (AgJOBS)

12 International Trade Issues Promote multi-country, trade-facilitating pact to recognize winemaking practices authorized by a winery’s government Recognize place names of origin Simplify certification process for wines traded internationally Push for reduction in EU wine subsidies

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