Growth of the Iowa Vine/Wine Industry Growth of...Growth of the Iowa Vine/Wine Industry Michael L....
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Growth of the Iowa Vine/Wine Industry Michael L. White Viticulture Specialist ISU Extension Cell: 515-681-7286 E-mail: [email protected]Nebraska Winery and Grape Growers Forum and Trade Show 3-1-13 1
Growth of the Iowa Vine/Wine Industry Growth of...Growth of the Iowa Vine/Wine Industry Michael L. White Viticulture Specialist ISU Extension Cell: 515-681-7286 E-mail: [email protected]
Nebraska Winery and Grape Growers Forum and Trade Show
3-1-13
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http://www.extension.iastate.edu/Wine/
Midwest Grape & Wine Industry Institute
http://www.extension.iastate.edu/Wine/
http://www.extension.iastate.edu/wine/history 3
Iowa Wine History
A.S. Bonham planted grapes in Council Bluffs in 1857
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Picture from: Grape Production & Distribution in Western Iowa, June 1921 Bulletin 199 – Iowa State College Ag Experiment Station Excellent sources of Iowa and National grape and wine history:
http://www.extension.iastate.edu/wine/history 4
Iowa Wine History Des Moines Register
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Original Photo taken in August of 1940
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So What Happened to Iowa’s Wine Industry?
1. Prohibition of Alcohol - Iowa Prohibition 1914 to 1933 - U.S. Prohibition 1920 to 1933
2. Armistice Blizzard, November 11 & 12, 1940
3. Introduction of highly volatile 2,4-D’s in late
1940’s
4. Government Farm Commodity Programs
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Iowa enacted prohibition in 1914 The 18th amendment to the U.S. Constitution enacted U.S. Prohibition in 1920 and the 21st Amendment to the U.S. Constitution eliminated the 18th. Approx. 150 died in the Armistice Blizzard of 1940.
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White Elk Vineyards (1869 – 1914?)
Keokuk, IA
Ruins still located 2 mi. north of Keokuk.
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Hiram Barney’s son Lewis T Barney managed the 100 acre vineyards and winery until 1903. Chester B Cory purchased in 1903 and just sold grapes and juice. Much was made into “ Elixer of Life” by a firm in Keokuk. White Elk was producing a high of 100,000 gallons per year and shipping to Europe.
Amana Colonies 4 Wineries
Primarily Fruit Wines
Located on I-80 just west of Iowa City Down from 11 Wineries in 1999
http://www.amanacolonies.com/
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Village Winery founded in 1973 Ackerman Winery founded in 1971 Sandstone Winery founded in 1975 White Cross Cellars – wine store – formed in 2009
0102030405060708090
100
1999 2001 2003 2005 2008 2010 2012
Wineries
Iowa Wineries
Iowa Alcohol Beverage Division
99 Wineries 1-13-13
http://www.iowaabd.com/ 8
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1-13-13 TTB list of wineries: http://www.ttb.gov/foia/xls/frl-wine-producers-and-blenders-ak-to-az-and-co-to-ky.htm 104 minus 2-Iowa wine coop and White Barn Winery = 101 wineries 12/11 TTB list of wineries http://www.ttb.gov/foia/xls/frl-wine-producers-and-blenders-ak-to-az-and-co-to-ky.htm 3/07 there were 70 Iowa licensed wineries in Iowa. A few of these wineries have yet to open. They still need to get a federal licence. 7-1-10 there were 86 state licensed wineries in iowa according to the Iowa Alcoholic Beverages Division. http://www.iowaabc.com
9 99 Wineries & 306 Vineyards 7/2012
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11-7-11 number of wineries comes from the Iowa Alcohol Beverage Division. The number of commercial vineyards comes from the Mike White’s database. 11-13-08 Iowa ABD listed 74 state licenses. 10-08 TTB listed 72 federal licensed wineries 12-3-08 405 vineyards listed in Mike White’s database
Main point: Industry is maturing. Number of vineyards is decreasing but the average size of vineyard is increasing. Year Wineries Vineyards Acres 1999 14 15 31 2000 14 50 100 2001 16 100 200 2002 18 175 350 2003 26 200 400 2004 33 230 500 2005 53 305 600 2006 68 340 700 2007 70 384 875 2008 72 400 1,000 2009 76 398 1,200 2010 86 413 1,200 2011 92 301 1,200 2012 99 312 1,200
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Wine trails are typically limited liability corporations (LLC’s) that are set up by a group of wineries to promoted weekend wine related activities on a monthly or quarterly basis to get wine trail tourists to visit multiple wineries in a area.
California 89.5% of U.S. Wine Production 61 % of U.S. Market Share 90% of U.S. Wine Exports Other States 11.5% of U.S Wine Production 8% of U.S. Market Share Imports 31% of U.S. Market Share Iowa 0.04% U.S. Wine Production & Market Share
U.S. Wine Market
U.S. #1 Wine Market in the World
2011
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2011 California & U.S. Wine Sales, The Wine Institute: http://www.wineinstitute.org/resources/statistics/article639 California has 89.5% of U.S. Wine Production California has 90% of U.S. Exports U.S. is Worlds Largest Wine Market, Examiner – 3-23-12: http://www.examiner.com/article/u-s-is-world-s-largest-wine-market California has 61% of U.S. market Share U.S. Market Share Facts & Figures , Porvence de France, 1/12: http://res.franceguide.com/us/press_2012/weblinks/vin_de_provence_facts_figures.pdf Of total U.S. wine sales in 2010, 69% represented domestic (mainly California) wines, while 31% represented imported wines, according to the U.S. Department of Commerce. Of these imports, 66% were from Old World exporters, with France at 24%, Italy at 30%, and Spain at 6%. The other countries in the top six were from the New World markets of Australia (14%), Chile (7%), and Argentina (6%).
0100200300400500600700800900
1975 1985 1995 2005 2007 2010
Wineries
IA,IL,IN,MI,MN,MO,ND,NE,SD,WI Wineries
TTB.gov
12-25-11= 886
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12/2011 IA – 95, IL – 146, KS-31MI-191, MN-51, MO - 153, NE - 32 ND -10, IN – 103, SD – 22, WI-83 =886 KS = 31 Sept 2009 = 663 wineries TTB - Oct 18 2010 = 786 wineries M_ = 169, IN = 70 SD = 9, WI = 72, IL = 116 , MO = 138, IA = 90, MN = 50, SD = 20, NE = 27, KS = 25 9-2009 TTB winery list ia = 81, Il = 108, IN = 55, MI=153, MN= 40, MO = 114, NE = 28, ND=8, SD= 17, WI = 59 12/07 TTB winery list IA = 64, IL=89, IN = 43, KS = 19, MI = 125, MN = 30, MO=95, ND=9, NE=24, OH=118, OK=53, SD=15, WI=45 Ca = 2,951 wineries. 51% of U.S. Wineries now outside of CA TTB Winery List of wineries & Blenders can be found here: http://www.ttb.gov/foia/frl.shtml 12/97 Report shows KS-19, IA -62, IL-89, IN-43, MI-128, MN-29, MO-94, NE-24, ND-9, SD-15, WI-47, = 559, CA = 2171, U.S. total of 5438 1-7-07 Review of Each State’s WWW site showed: IA -68, MO-61, WI-30, MN-16, IN-33, IL-64, MI-48, NE-16, SD-8, ND-2 = 345 up from 246 in 2005 = 6.8% of U.S. wineries. TTB.gov showed 1867 wineries 4/06 report in California.
U.S. Census Bureau & Catchwine
700mm
5.38mm mm 5.73 mm
3 mm 804 m
1.86 mm 12.9 mm
6 mm 2.9 m
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40
55 20
99
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125 125
2-24-13 Wineries vs State Population
88m/winery
135m/winery 104m/winery
30m/winery
111m/winery 48m/winery
52m/winery
104 m/winery 16
40m/winery
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10-18-10 list of TTB wine producers and blenders: http://www.ttb.gov/foia/frl.shtml
Six Wine Trails
Scenic Rivers Wine Trail
7 IA wineries 5 IL wineries
4 MO wineries
Heart of Iowa Wine
Trail
13 wineries
Iowa Wine Trail 8 IA
wineries
Western Iowa Wine
Trail 7 wineries
Amana Wine Trail 4 wineries
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I-80 Wine Trail – 7 IA wineries
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Presentation Notes
Wine trails are typically limited liability corporations (LLC’s) that are set up by a group of wineries to promoted weekend wine related activities on a monthly or quarterly basis to get wine trail tourists to visit multiple wineries in a area.
Western Iowa Grape Growers Assn.
Mississippi Valley Grape Growers Assn.
Five Associations
Northwest Iowa Grape Growers Assn.
Scenic Rivers Grape & Wine Assn.
Iowa Wine Growers
Association
Upper Mississippi Valley American Viticultural Area
(AVA)
U.S. largest AVA covering 29,914 sq. miles in IA, IL, MN, & WI approved by the Tobacco Tax & Trade Bureau (TTB) in June, 2009
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Reported in Federal Register on 6-22-09 AVA’s must be approved by the U.S. Tax and Trade Bureau. Typically are identified by soils, environment, cultural areas, ethnic areas, and/or grapes grown. Many refer to them as Appellations as they do in Europe.
Loess Hills American Viticultural Area (AVA) is in our future
196 AVA’s in U.S. Today (10-18-12)
http://www.ttb.gov/appellation/us_by_ava.pdf 20
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The Western Iowa area is currently in the process of getting an AVA approved in their area.
Unique Native Winery Laws No mandatory “Iowa” juice requirements.
Retailers can sell Iowa wine by the bottle and have tastings. $25/yr. license.
$25 license to have a wine festival
Wineries and associated land are assessed as agricultural.
Wine Doggy Bag Law enacted in 2009
$1.75/gal. excise tax goes to the Iowa Wine & Beer Promotion Board
Iowa wineries can sell beer enacted in 2009
Out and in-state wineries can direct ship within Iowa - $25 annual license
Micro-distilleries can taste and sell at retail locations - 2010
Iowa wineries can self distribute to retailers
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Note: Dramm Shop insurance also is needed to hold a wine festival. No mandatory “Iowa” juice requirements. Food Inspectors “DO NOT” inspect wineries Retail sales EXEMPT from $1.75/gallon state tax. Any Retail Business can sell native Iowa wine by the bottle with a $25/year license, ie….. flower shops, gift shops, Bed & Breakfasts, etc… $25 license available for wine tasting and sell wine by the bottle, ie…. promotes wine festivals and events. Native Iowa Wineries and their associated land are classified as “Agricultural Land” (300+ Grape Plants) 2009 Wine Doggy Bag Law enacted.
22 http://www.iowaabd.com
$7.286mm in Fiscal Year 2012
$255,627 came from Iowa Wineries
6% Retail Wine Market Share
$1.75 / gal. Excise Tax
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Iowa has the 3rd highest wine excise tax in the nation = $1.75/gallon. $255, 627 of the $7,286 mm came from Native wineries in 2012 Iowans purchased 4,247,166 gallons of wine from wholesale and 265,255 gallons from native Iowa wineries for the year ending June 2012 or 5.92 percent of the total sold. Iowa’s 2012 population is 3,075,000 and consumes about 1.47 gallons of wine per person. The US average is 2.54 gallons of wine per person. (1)
2005 Profile of TX Wine & Winegrape Industry
Primary Iowa Winery Price
Range
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U.S.
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Presentation Notes
2005, Texas Wine Marketing Research Institute, Texa A & M University Most Iowa wines retail in the $10 to $12 range.
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Grapes, Wine & Taxes
Average yield of 3.5 tons/acre will produce 525 gallons of wine.
525 gal. x state wholesale wine tax of $1.75/gal. = $919
525 gal. x federal tax of 17 cents per gallon = $ 89
525 gal. x 5 bottles/gal. x $11/bottle x 6% state tax = $1,732
$26,250 of wine/acre x 1% local option tax = $ 289
Potential Total Tax of = $ 3,029/ acre/year
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2011 The $1.75/gallon wine tax is applied to wholesale wine sales only. Approx. 56% of Iowa made wine is wholesaled by Iowa wineries.
2008 IA Economic Impact Study
$30 total economic impact for each $1 in native Iowa wine sales.
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Presentation Notes
The 2008 Iowa vine/wine economic impact statement was released in March of 2010 and was paid for with a grant from the Iowa Wine and Beer Promotion Board. http://www.extension.iastate.edu/NR/rdonlyres/76EF63EC-3311-47AC-B2F1-791C81E1A736/120834/2008IowaWineandVineyardsEconomicImpactReport_FINAL.pdf
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QUESTIONS
Primary Wine Grapes Being Planted in Iowa
White Grapes Chardonel, Edelweiss, Frontenac Gris, La Crescent, La Crosse, Louise Swenson, Niagara, Petite Amie, Prairie Star, St. Pepin, Seyval Blanc, Swenson White, Vignoles, Brianna, Esprit
Red/Blue Grapes Catawba, Concord, Norton/Cynthiana, Frontenac, Leon Millot, Marechal Foch, Petite Pearl, St. Croix, Steuben, Swenson Red, Valiant, St. Vincent, GR-7, Marquette, Noiret, Corot noir, Sabrevois
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Presentation Notes
The Midwest has a large arsenal of winegrapes to make wine. This ads a huge variety to what one can find in each winery.
It takes approx. 75 to 100 hours to pick an acre of grapes. A mechanical picker can do this chore in approx. 1 hr.
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Iowa has National and
International Award Winning Wines
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Presentation Notes
Wine trails are typically limited liability corporations (LLC’s) that are set up by a group of wineries to promoted weekend wine related activities on a monthly or quarterly basis to get wine trail tourists to visit multiple wineries in a area.
http://www.iowawinegrowers.org 31
32 100,000+ people at Iowa State Fair
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http://www.traveliowa.com/GetInspired/WineAndBeer
34 http://www.midamericanwine.org/
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16 states NE received 23 awards for 6 wineries
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Midwest Grape & Wine Industry Institute established…9-26-07
http://www.extension.iastate.edu/Wine/
http://www.viticulture.hort.iastate.edu
Good Place to go for Midwest
Viticulture info!
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Northeast Iowa Community College at Peosta is the Iowa Community College contact. Scott Kohl at Highland community College is the VESTA contact for Kansas. [email protected]
http://www.iowaabd.com 39
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The End 56% of Iowa made wine is sold wholesale
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Presentation Notes
Wine trails are typically limited liability corporations (LLC’s) that are set up by a group of wineries to promoted weekend wine related activities on a monthly or quarterly basis to get wine trail tourists to visit multiple wineries in a area.
