Napa Valley generates billions for US economy

Published: 31 October, 2008

California's Napa Valley contributes $42 billion (£25.9 billion) a year to the entire US wine economy, according the findings of a new report.

California's Napa Valley contributes $42 billion (£25.9 billion) a year to the entire US wine economy, according the findings of a new report.

A study by the Napa Valley Vintners (NVV) released this week estimates that whilst the Napa Valley produces just 4% of California's wine grapes, the region is responsible for nearly 30% of the economic impact of wine in California, and nearly 34% of the economic impact of California's wine to the US economy.

The research, conducted by wine industry analyst Barbara Insel of Stonebridge Research, found that the local impact had grown by 15% since the last report was conducted in 2005.

It values the impact on Napa County's economy alone at nearly $11 billion (£6.8 billion million) annually.

Said Insel: "While the Napa Valley appellation, which covers almost the entirety of the county, is uniquely suited for fine winegrowing due to its geography and climate, this value statement is also a reflection of the region's reputation for quality and consistency, and the appellation's strength in marketing."

Linda Reiff, NVV's executive director, added: "Especially during these tough times it is encouraging to know that we have a strong industry helping fuel our local and greater economy."

The report indicates that direct revenue from wine produced in the Napa Valley now exceeds $4.1 billion (£2.5 billion) annually. The wine industry in the area generates tax revenues that affect local, state and federal budgets totaling at least $4.4 billion (£2.7 billion) by "conservative" estimates.

Napa Valley's wine and vineyard sector directly, and indirectly through the services and products it consumes or generates, provides nearly 40,000 jobs, making it the county's largest employer.

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