Opinion: There’s Value In Lodi’s Wine Industry
July 1, 2009 If a new industry were to be founded that would have a $5 billion annual impact on a certain region just 20 years after its establishment, that industry would likely be the toast of the popular media. Everyone, from politicians to economic gurus, would be hailing the geniuses who made it happen. Well, it has happened. But don’t expect there to be a torrent of publicity. After all, it’s not something new or high-tech. Just good old-fashioned agriculture.
A study was released in June noting that the full economic impact of the Lodi, CA, wine and vineyard sector and its allied industries totals $5 billion annually. The study, titled, “The Economic Impact of Wine and Grapes in Lodi 2009,” was prepared by the Stonebridge Research Group LLC of Napa. As might be expected, it was rightly trumpeted by leaders of the Lodi District Grape Growers Association and the Lodi Winegrape Commission.
“This report confirms that the grape and wine industry plays a vital role in the overall economic health of the Lodi area,” says Kelly Brakel, the president of the Lodi District Grape Growers Association. “We hope our area’s urban and rural residents will value our industry’s leadership, tradition, and economic importance, and we look forward to the continued support of the community on local, state, and federal issues which have a direct effect on agriculture.”
Can’t Wait To Get Stuck Again
When you consider the depth — and breadth — of the industry’s impact, it really is astounding. As one of the area’s largest employers, Lodi’s wine and vineyard sector directly and indirectly provides almost 15,000 jobs in the region, accounting for more than $493 million in wages. More than $325 million in local, state, and federal taxes were generated by the wine and vineyard sector and related activities. This includes $170 million in federal taxes and $155 million in state and local taxes.
What’s really amazing, when you think about it, is how quickly this industry has grown up. In 1991, the Lodi region was home to just eight wineries. Today there are 75. That figure does include boutique wineries, but still, nearly a 10-fold increase in fewer than two decades? Astonishing. Incidentally, in addition to 75 wineries, the study notes that there are now 750 winegrape growers in the region farming a total of 100,000 vineyard acres. They produce a total of 39.7 million cases of wine.
What’s even more amazing is that the wine industry has helped grow another economic engine — tourism. Tourism has become an important part of the region’s economy. Wine tourism now accounts for more than 80% of tourism to the Lodi area. This in a town that was once disrespected in the line of a song by the rock band Creedence Clearwater Revival, “stuck in Lodi again.”
In mid-May, my wife and I were stuck in Lodi for the region’s premier wine event, a salute to their signature varietal, the annual ZinFest. In fact, there were thousands of us stuck there at Lodi Lake, enjoying Lodi wines paired with gourmet foods, listening to live music. What a remarkable $5 billion success story. We just can’t wait until next year, when we’ll be “stuck in Lodi again.”
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