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Producing Wine No Picnic As the recently harvested grapes from Western Colorado find their way to the 65 wineries across the state, they highlight a story of economic opportunity and potential concern. Although wine production is tiny in Colorado, particularly compared to the giant California industry, it is having a positive impact on the entire state, particularly the Western Slope. According to a 2006 study by Colorado State University, the value of grape production is $3072 per acre while that of irrigated corn is only $400 an acre. Adding in the value of wine production, the direct revenues per acre of wine grapes mount to $14,000. Despite its small vineyard acreage and Colorado's often difficult climate, this is an industry of growing importance to our state. As in Northern California, wineries in Western Colorado are a strong tourist attraction. That stretches the economic importance of the industry beyond merely producing and selling wine. Coloradans are also larger consumers of table wines than residents of other states, drinking 20% more wine than the average U.S. consumer, according to Vine Lifestyle at Altitude. And, we enjoy domestic wines more, with 87% of our consumption domestic compared to the American average of 75%. That should bode well for sales of Colorado wines, if only we produced more. Even more crucial, said Bart Taylor, editor of Vine Lifestyle at Altitude, is improving the quality of Colorado wines to broaden their appeal to liquor stores and restaurants as well as consumers. While Colorado wineries produced almost 50% more wine in 2006 over 2002, that was still only a market share of 1.5%, with virtually all sales within the state. Contrast that to California's nearly 90% market share and you can see what a tiny player we are. Meanwhile, worldwide, competition looms ever larger as more countries enter an already crowded global market. CSU's study showed that the United States share of world wine production was 9% compared to emerging competitors Argentina, at 6%, and Australia at 4%. Both these countries make excellent wines at very competitive prices. At the same time, France is converting nearly a billion bottles a year of wine into ethanol or animal feed. On a recent business trip to Argentina, I spent several days in Mendoza, the lovely, but barren, heartland of the Argentine wine industry, pressed up against the majestic Andes. While 5 years ago, there were only a handful of wineries in the region, today there are over 100. These are very high-tech operations, owned and run by families with long experience in the industry in Europe and the U.S., as well as South America. They produce exceptional wines at equally exceptional prices. This competition is just the first factor of concern to any wine maker in Colorado, or California, for that matter. Not only is the quality of imported wine excellent, but the lower cost of production and the dismal value of the dollar against other currencies makes the prices very appealing. Second is climate, though this is a concern world-wide. In Colorado, as in Argentina, runoff from snow is essential to irrigation. Without the Colorado River, the Western Slope could not sustain its strong agricultural economy. In Argentina, the Mendoza River was bone dry, awaiting snow melt from an all too meager covering of snow
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