Colorado wine industry ripens

Grape growers, winemakers boost economy, study says

Roger Fillion, Rocky Mountain News

Published June 16, 2006 at midnight

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Colorado's growing wine industry is delivering more than just good bottles of sauvignon blanc, Riesling and cabernet franc.

Colorado's grape growers and winemakers helped give the state an economic shot in the arm totaling $41.7 million during the 2005 growing season, a Colorado State University study shows.

The study - the first of its kind for Colorado - shows that the industry's impact extends beyond just wine production and sales, which generated $21.1 million in direct and indirect economic activity.

Chalk it up as well to wine festivals, wine trains and tourists hoisting glasses in winery tasting rooms. Such wine-based tourism generated $20.6 million in 2005.

"The tourism impact is what we're really excited about," said Doug Caskey, executive director of the Colorado Wine Industry Development Board.

At the same time, Coloradans tip their wine glasses nearly 20 percent more than the average American.

The state's wine industry is based mainly on the Western Slope, with Mesa County accounting for nearly 60 percent of the wine produced. But wineries are located across the state, in such places as Evergreen and Cañon City.

During the 2005 growing season, Colorado produced nearly 689,000 liters of wine - about 76,550 cases. That's a fivefold increase from 10 years ago.

As of March 2005, the state had 66 wineries. The number of wineries has jumped 250 percent since 1995.

Ron Binz, co-owner of Trail Ridge Winery in Loveland, said the study "confirms what a lot of people have been feeling - that the industry has been growing rapidly in recent years and has been contributing significantly to the economy."

Colorado, to be sure, pales in comparison with such powerhouses as California, where the industry delivers an economic jolt exceeding $45 billion a year.

And Colorado winemakers account for only 3 percent of wine sales in the state.

Yet the state can deliver a punch, given its size. Colorado's wine production ranked 22nd in the nation. And per-capita consumption here - at 3.66 gallons a year - exceeds the national average of 3.06 gallons.

Dawn Thilmany, a Colorado State University professor who led the study, said Colorado's wine industry is benefiting from large crowds of baby boomers who call the state home as well as people who own a second home here.

"We are growing with the types of people who tend to be wine drinkers," she said.

Thilmany also said Colorado's tourism industry lends itself to promoting the local wine business, with tourists visiting tasting rooms around the state during the off-seasons.

In wine-producing areas, she noted, hotels can fill their rooms and restaurants can fill their tables during spring and fall.

"We're well-suited to grow for a while," Thilmany said of the industry.

The CSU study also showed that:

• More than 130 wine-grape growers are active in the state, devoting 650 acres to production.

• Wine-grape production has increased by more than 20 percent a year since 1996.

• Colorado reported about $11.8 million in wine sales for the 2004-2005 production year, creating $21.1 million in direct and indirect economic impact.

• The average 750 milliliter bottle of Colorado wine sells for $12.86.

• In 2004, Colorado ranked 16th among all 50 states in terms of total wine consumption.

Caskey of the Colorado Wine Industry Development Board singled out another factor that's boosting the state's wine industry and its impact.

"There's more of an interest on the part of consumers in wine from states that are outside of what people think of as wine states," he said, pointing to Colorado as well as New Mexico, Missouri and Virginia.

"That's one of the things that's helping drive the growth in sales and the impact of tourism."

fillionr@RockyMountainNews.com or 303-892-2467

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