Pacific Northwest shows astonishing growth - wine industry

The Pacific Northwest is one of the fastest growing wine producing areas in the United States. New wineries are popping up so fast that it is hard to keep track, but at last count there were 116 in Oregon, 91 in Washington and 13 in Idaho. If the math is right, that's 220 wineries.

Oregon ranks second in the number of wineries (behind California) and Washington is fourth. In 1986 there were 47 wineries in Oregon and in 1981 only 19 in Washington, showing the astonishing rate of winery growth for the Northwest. Oregon wine sales have increased 272% since 1986 and Washington sales are up 350% since 1982.

Oregon produces 21 varietal wines, Washington 20. Oregon white wine production is 38% of the total, while Washington's is 60%, reflecting one major difference. Washington's total acreage in vinifera is about 14,000 while Oregon has some 7,500 acres planted.

In 1996, Oregon's winegrape crop was a record 15,000 tons, 7% higher than the previous year and up 39% from 1994. The value of the crop was $15.3 million, up 15% from the previous record, set in 1995.

The Washington harvest in 1996 was 32,000 tons, the lowest since 1991 and the second lowest in the past ten years. A recent development of the past few years has been the increase in exports from the Pacific Northwest. Certainly, the bulk of exports are still Californian but the Pacific Northwest, and Washington in particular, is coming on strong.

Steve Burns, executive director of Washington Wine Institute and head of the Northwest Wine Alliance (a coalition of Washington, Oregon and Idaho wineries joined for international trade) said in a recent interview, "Our export markets are not looking at us for mass supply. They are interested in the quality story and especially in the red wine story, particularly in the U.K." Burns said that in the U.S., the image of Washington state wines was still stuck in the inexpensive Rieslings and Chardonnays value-for-money image, but globally there was not that preconception to overcome.

"In London, they are looking at Washington like New Zealand except as red wine specialists. They are interested in Merlot and Cabernet Sauvignon, but beyond that they are looking at Washington Syrah and Cabernet franc. And they see Oregon as a Pinot noir specialist. What's encouraging is that many importers are looking beyond Merlot. They are asking what's next, and are willing to take on small lots of wines on an exclusive basis," Burns said.

The U.K. is the number one market for Northwest wines but on an individual basis, more Northwest wineries are doing business in Canada than in any other country. Pacific Rim business also is strong, especially in Japan, Hong Kong and Singapore. There, again, the full range of Washington wines is available. There is strong interest in Washington in developing the Chinese market also.

"We've seen a big increase in requests for wine in Taiwan and Singapore," Bums said. "On the other hand, at this point, we can't supply our customers in the U.S."

Burns said that plans for 1998 include doubling the U.K. export program and a quadruple expansion of the Canadian [TABULAR DATA OMITTED] [TABULAR DATA OMITTED] program, including a new four-city tasting tour.

PERCENTAGE OF ACREAGE BY APPELLATION

                        Acres Planted          Percent of
                           (1994)                   Total

Columbia Valley           7,280.72                    57%
Yakima Valley              5189.00                    40%
Walla Walla Valley           90.50                     1%
Puget Sound                  33.00         [less than] 1%
All Other Wash-
ington Locations            268.97                     2%

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