Paso Robles, Calif. -- A study commissioned by the Paso Robles Wine Country Alliance (PRWCA) and the Economic Vitality Corporation (EVC) of San Luis Obispo County reveals that the economic impact of the county's grape and wine industry totals $1.8 billion currently. If more locally grown winegrapes were made into wine made within the county, that figure could increase by as much as $1.4 billion.

Currently, 58% of the county's winegrape crop is sold outside the county, destined primarily for wines bearing California and Central Coast labels. The current winegrape harvest could source an additional 3.6 million cases of Paso Robles or San Luis Obispo (SLO) wines, which would increase the county's share of California wine production from 2.9% to 7.5%, according to the study, just completed by MKF Research. Wines & Vines reported on preliminary results in our March, 2007 issue.

The wine industry now employs more than 8,000 people; by capturing more Paso Robles and SLO AVA brands, 5,600 skilled jobs in marketing, sales, management, finance and science could increase the payroll by more than 30%.

Other highlights:

• Annual industry wages--241 million
• Retail value of SLO County wine--$803 million
• Retail value of Paso Robles AVA wine--$657
• Bonded wineries in the county--217
• Bearing winegrape acreage--29,000
• Wine tourism expenditures--$113 million annually
  (Results based on 2006 data.)

"The study confirms how greater brand awareness could provide a significant economic return to the region," PRWCA executive director Stacie Jacob said in a statement.

According to Christopher Taranto, PRWCA communications manager, the alliance has its own internal program that puts local growers in touch with grape brokers, and perhaps eventually buyers who will want to promote the Paso brand. While building more local wineries and brands is a goal, however, "We're not actively promoting any individual projects, or going out to get wineries to build here." Nor are there any economic incentives at the county level to encourage winery development, Taranto told Wines & Vines.

Although two divergent, well publicized proposals for new sub-appellations within the Paso Robles AVA are currently in limbo, following the TTB's decision to revisit its approval process for new vineyard areas (see Headlines, Aug. 1, at winesandvines.com), there is potentially some political action on the horizon. Taranto was hopeful that California Assembly Bill 87, otherwise known as "the Conjunctive Labeling Law" would make its way onto the books. This bill, if passed and signed, would specifically require that the Paso brand  not be diluted. No matter how many sub-appellations are eventually approved, any wine labeled as, say, "Westside" would also be required to bear a Paso Robles designation.

To see a summary of the study, visit pasowine.com.