Washington Wine Industry Comes of Age

Both states have strong agricultural programs. At a time when some agricultural products are declining in sales, growing grapes turns out to be very profitable, prompting some farmers to rip out apple orchards and plant grape vines. The value of the wine grape crop in Washington increased by 62 percent from 1995 to 1999, while the value of the apple crop declined by 14 percent, according to recent statistics.

"Washington's focus on growing quality, 100-percent premium wine grapes is helping growers achieve higher profitability margins," said Motto, whose company has studied the wine industry for the past 20 years. "Wine is the highest-value agricultural crop in America today."

What does it mean for the consumer? Motto said the region has experienced four periods of economic recession since 1974 and in each case, wine sales continued to grow. People have a higher quality of lifestyle, and with that comes the appreciation of better wines, he said.

"People may put off buying or building a house when the economy slumps, but they continue to purchase premium wine," he added.

Burns said varietals grown in Washington and Oregon mirror the consumer's palate as taste preferences change. Twenty years ago, consumers in the Northwest were sipping more white wines. As Washington and Oregon produced more premium red wines, the industry shifted. Washington produces a ratio of 52 percent red to 48 percent white. Oregon is just the opposite 52 percent white of 48 percent red wine.

The bottom line is good news for Washington and Oregon wine producers, and the consumer.

"As we continue to expand and focus on quality, we will help strengthen the overall agricultural economy throughout the Pacific Northwest," Burns said. "We're keeping a close eye on the consumer."

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