Growth of the Iowa Vine/ Industry Nebraska Winery and Grape Growers Forum and Trade Show 3-1-13

Michael L. White Specialist ISU Extension Cell: 515-681-7286 E-mail: [email protected]

1 http://www.extension.iastate.edu/Wine/

Midwest Grape & Wine Industry Institute http://www.extension.iastate.edu/Wine/ 2 Iowa Wine History A.S. Bonham planted grapes in Council Bluffs in 1857

3 http://www.extension.iastate.edu/wine/history Des Moines Register Iowa Wine History

4 http://www.extension.iastate.edu/wine/history 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

5 White Elk Vineyards (1869 – 1914?) Keokuk, IA

Ruins still located 2 mi. north of Keokuk.

6 Amana Colonies 4 Wineries Primarily Fruit

Located on I-80 just west of Iowa City Down from 11 Wineries in 1999

http://www.amanacolonies.com/ Iowa Wineries

100 90 80 Wineries 70 60 99 50 Wineries 40 1-13-13 30 20 10 0 1999 2001 2003 2005 2008 2010 2012

Iowa Alcohol Beverage Division

8 http://www.iowaabd.com/ 99 Wineries & 306 Vineyards 7/20129 Iowa's Maturing Wine Industry Growth

1200

1000

800

A C Wineries R 600 E Vineyards S Acres

400

200

0 1,999 2,000 2,001 2,002 2,003 2,004 2,005 2,006 2,007 2,008 2,009 2,010 2,011 2,012 YEAR

10 11 Perspective U.S. Wineries 8000 7000 6000 5000 4000 3000 2000 1000 0 1975 1995 2005 2006 2007 2008 2009 2011 2012

U.S. Wineries

13 WineAmerica U.S. Wine Market 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. #1 Wine Market in the World

2011 IA,IL,IN,MI,MN,MO,ND,NE,SD,WI Wineries 12-25-11= 886

900 800 700 Wineries 600 500 400 300 200 100 0 1975 1985 1995 2005 2007 2010

15 TTB.gov 2-24-13 Wineries vs State Population

8 135m/winery 5.38mm 104m/winery 88m/winery 700m mm 5.73 mm m 40 40m/winery 804 55 20 m 99 3 mm 1.86 mm 30m/winery 12.9 mm 52m/winery 36 6 mm 125 125 2.9 m 111m/win 48m/winery 104 m/winery 28 ery

16 U.S. Census Bureau & Catchwine Six Wine Trails

Iowa Wine Trail Heart of 8 IA Iowa Wine Amana wineries Trail Wine Trail 4 wineries

I-80 Wine Trail – 7 IA wineries

Western 13 Scenic Rivers Iowa Wine wineries Wine Trail Trail 7 IA wineries 7 wineries 5 IL wineries 4 MO wineries

17 Five Associations

Northwest Iowa Grape Mississippi Valley Grape Growers Growers Assn. Assn.

Iowa Wine Growers Association

Western Iowa Grape Growers Scenic Rivers Grape Assn. & Wine Assn.

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

19 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 Unique Native Winery Laws No mandatory “Iowa” juice requirements. Iowa Food Inspectors “Do Not” inspect wineries. Feds Do! Retail sales EXEMPT from $1.75/gal. excise tax $1.75/gal. excise tax goes to the Iowa Wine & Beer Promotion Board $25 license to have a wine festival Retailers can sell Iowa wine by the bottle and have tastings. $25/yr. license. Wine Doggy Bag Law enacted in 2009 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 Wineries and associated land are assessed as agricultural. Iowa wineries can self distribute to retailers $7.286mm in Fiscal Year 2012

$255,627 came from Iowa Wineries

6% Retail Wine Market Share

$1.75 / gal. Excise Tax

22 http://www.iowaabd.com U.S. Primary Iowa Winery Price Range

2005 Profile of TX Wine & Winegrape Industry23 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

24 $30 total economic impact for each $1 in native Iowa wine sales.

2008 IA Economic Impact Study 25 QUESTIONS

26 Primary Wine Grapes Being Planted in Iowa White Grapes , Edelweiss, Gris, La Crescent, , Louise Swenson, , Petite Amie, Prairie Star, St. Pepin, , Swenson White, , Brianna, Esprit Red/Blue Grapes , Concord, /Cynthiana, Frontenac, , Marechal Foch, Petite Pearl, St. Croix, Steuben, Swenson Red, Valiant, St. Vincent, GR-7, , Noiret, Corot noir, Sabrevois

27 $5 each

http://www.agriculture.state.ia.us/Horticulture_and_FarmersMarkets/sensitiveCropDirectory.asp

28 Six Grape Harvesters in Iowa Today

29 Mechanical Harvesters Iowa has National and International Award Winning Wines

30 http://www.iowawinegrowers.org

31 32 100,000+ people at Iowa State Fair http://www.traveliowa.com/GetInspired/WineAndBeer

33 http://www.midamericanwine.org/ 34 Midwest Grape & Wine Industry Institute established…9-26-07

http://www.extension.iastate.edu/Wine/

35

Good Place to go for Midwest Viticulture info! http://www.viticulture.hort.iastate.edu 36 Wine Grower News

Weekly in-season viticulture/enology newsletter. Total Circulation of 1,600+ recipients in AZ, CA, CO, FL, OH, IA, IN, IL, KS, KY, MI, MN, MO, MS, MT, NC, ND, NE, NH, NM, NV, NY, OK, OR, PA, SD, VA, VT, WA, WA DC, WI, Australia, Canada, Israel, Norway, Pakistan, Sweden & Turkey

To Subscribe to this FREE Newsletter E-mail “ [email protected]“ with the word subscribe in subject line. http://www.extension.iastate.edu/Wine/Resources/winegrowernews.htm 37 On-line Viticulture and/or Enology Courses 2 yr degree or 100 hour certification

http://www.vesta-usa.org 38 http://www.iowaabd.com 39 The End

56% of Iowa made wine is sold wholesale

40