State of Oregon’s Wine Industry Oregon Winegrowers Association

Founded in 1980, the OWA represents more than 400 wineries, vineyards and suppliers from around the state. Over the decades, the OWA has served as the Oregon wine industry’s voice in legislative and regulatory affairs at the state and federal levels, helping pave the way for the industry’s success. As the industry grows and diversifies, the OWA continues to stand as a vital advocate for the health, growth and economic sustainability of Oregon’s wine grape growing and wine production community. Oregon Winegrowers Association

Governance Changes • In May 2020, OWA members approved bylaws changes outlining a new election process for board directors. • The OWA board of directors no longer mirrors the Oregon Wine Board. • 9 board seats are allocated as follows: • 1 Eastern Oregon • 1 Rogue Valley • 1 Umpqua Valley • 2 Willamette Valley • 1 Large Winery • 1 Independent Grower • 2 At-Large • Elections were held over the summer. The new OWA board was seated September 1. Oregon Wine Council • Representing over fifty percent of Oregon Wine grapes grown, produced and sold, the Oregon Wine Council (OWC) advocates on behalf of growers, producers and businesses supporting Oregon’s thriving wine industry across the state. • The OWC was founded in August of 2019 by a committed group of industry leaders who are passionate about the success and sustainability of Oregon’s wine industry. Together, our Board of Directors and our members represent a variety of different AVAs and wineries of all sizes. • We have accomplished a lot in the short time since we formed including adopting by-laws, sitting our first elected board, creating our overall structure and establishing a strategic plan that we believe will help support both our members and the industry as a whole. • When our organization was formed, nobody could have guessed how difficult 2020 would be for vineyards and wineries. These challenges, however, have highlighted how important it is that our industry work together to help vineyards and wineries across the state as they face these unprecedented times. COVID-19 Impacts on Oregon’s Wine Industry

• Tasting rooms closed for onsite tastings for more than two months • Small and mid-sized wineries that rely on direct to consumer sales saw as much as a 40% decline in revenue • Restaurant closures and revenue declines continue to impact Oregon’s wine industry • Growers and producers are facing increased costs as they adjust their operations to ensure the health and safety of their employees and customers and as they work to implement complicated rules from various agencies including the new OSHA infectious disease rules Wildfire Impacts on Oregon’s Wine Industry • Unfortunately, wildfires and the related smoke exposure are not new challenges facing Oregon’s winegrowers. • Wineries and growers across the state have been impacted by wildfire smoke this year. • Testing of smoke exposed grapes is ongoing, but the extent of smoke exposure impact is still unclear. • Winemakers are able to utilize scientifically proven procedures to mitigate the effects of smoke exposed grapes. • While the long-term impacts remain unknown, some wineries have rejected grapes due to smoke exposure or decided not to produce a 2020 vintage. • Only 32% of grape growers in Oregon have crop insurance to cover losses from smoke exposure. Collaboration with Oregon Solutions

• Oregon Solutions released the Oregon Wine Industry Strategic Issues Resolution Assessment Report released June 2020 • Several industry meetings have been held with an additional meeting scheduled for November • Group purpose: Members of the Oregon Wine Industry Collaborative Forum commit to working together to address key issues impacting the industry near and long term for which the collective group agrees on the need to stay unified and, potentially, develop joint strategies. • The group has 28 industry participants representing OWC, OWA, OWB and several regional associations • OWA and OWC have coordinated on several COVID-19 and wildfire issues affecting the industry – a joint OWA/OWC board meeting will be held in advance of the next Oregon Solutions meeting to discuss how the two organizations can work together to help the industry OLCC Rulemaking

• OLCC has adopted or is considering several rules and initiatives impacting the wine industry. OWA and OWC are actively engaged in the following: • Wine labeling • Alcohol home delivery • Curbside delivery • Winery space accommodations • Online privilege tax collection Questions?

Jana McKamey Oregon Winegrowers Association [email protected] Fawn Barrie Oregon Wine Council [email protected]