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Press Release: Wine and Grape Industry has $5 Billion Impact on Lodi Region

June 16, 2009
Lodi, Calif., June 15, 2009 - The full economic impact of the Lodi wine and vineyard sector and allied industries in the Lodi area totals $5 billion annually, according to a report released by the Lodi District Grape Growers Association and Lodi Winegrape Commission. The study titled, "The Economic Impact of Wine and Grapes in Lodi 2009," was prepared by the Stonebridge Research Group LLC of Napa.

"This report confirms that the grape and wine industry plays a vital role in the overall economic health of the Lodi area," said Kelly Brakel, Lodi District Grape Growers Association President. "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 affect on agriculture."

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 over $493 million dollars in wages.

Over $325 million dollars 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 (San Joaquin and Sacramento County) taxes.

The increase in number of Lodi wineries over the past fifteen years has led to an increase in jobs and winery revenue as well as a dramatic increase in tourism. In 1991, the Lodi region was home to eight wineries, in 2009, there were seventy-five Lodi area wineries including numerous boutique and mid-size wineries.

Tourism has become an important part of the region with wine tourism accounting for over eighty percent of all tourism to the Lodi area. Winery tourism impacts not only wineries, but other industries including hotels and restaurants.

Highlights from the study include:

• Full Economic Impact- $5 billion

• Number of Operating Wineries- 75

• Number of Grape Growers- 750

• Vineyard Acreage- 100,000 acres

• Full-time Equivalent Jobs- 14,900

• Wages Paid- $493 million

• Lodi Wine Produced- 39.7 million cases

• Wine Related Tourism Expenditures - $409.5 million

• Wine Related Visits- 2 million

• CA and Local Taxes Paid- $155 million

• Federal Taxes Paid- $170 million

• Charitable Contributions- $35 million

The study used the IMPLAN or "IMpact analysis for PLANing" model to estimate the economic impact that the wine and grape industry has in the Lodi area. Direct, indirect, and induced effects were all analyzed.

Data to determine the direct effects including employment and spending of wineries, vineyards, distributors, and allied industries was collected through primary research by the Stonebridge Research Group LLC.

The complete report of The Economic Impact of Wine and Grapes in Lodi 2009 can be downloaded from the Lodi District Grape Growers Association website at www.ldgga.org.

Contacts:

Amy Blagg, Lodi District Grape Growers Association, www.ldgga.org, (209) 339-8246

Mark Chandler, Lodi Winegrape Commission, www.lodiwine.com, (209) 367-4727

Barbara Insel, Stonebridge Research Group LLC, www.stonebridgeresearch.com, (707) 294-1430

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