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Explore Sonoma County's Wine, Tourism and Emerging Craft Beverage Industries
- 1. SONOMA COUNTYTOURISM, WINE AND CRAFT BEVERAGE
- 2. Where is Sonoma County?
- 3. Community Profile Population: 483,878 Land Area: 1,768 square miles 76 miles of coastline 9 incorporated Cities Santa Rosa is the largest city and county seat The voters have twice approved open space initiatives that have provided funding for public acquisition of natural areas, preserving forested areas, coastal habitat and other open space.
- 4. High Cost of Living Median Household Income Median Home Sales Price Sonoma County $64,343.00 $479,000.00 San Francisco $72,947.00 $840,000.00 California $61,632.00 $433,760.00 United States $52,762.00 $213,500.00 Source: ACS, 2007-2011 Data Source: Various
- 5. Key Industries- Tourism $1.47 billion in 2011 9% Increase over 2010 Visitor spending accounts for 19 percent of local tax revenue in Sonoma County,
- 6. Key Industries- Tourism Tourism creates nearly 17,000 jobs From 2001 through 2011 tourism spending has increased by 41.5%
- 7. Key Industries- Wine Over 300 wineries Annual Sonoma County grape harvest is worth an estimated $200 million Represents 61 percent of the county’s total agriculture. 13 recognized AVA’s- most in US
- 8. Creation of a Regional Brand
- 11. Conjunctive Labeling Conjunctive Labeling: Labeling of a wine to show both region and sub-region (AVA) of origin. In our case, it refers to the inclusion of “Sonoma County” on the label of all Sonoma County wines along with any AVA designation. Objectives: •Build brand equity for Sonoma County wines •Preserve and strengthen Sonoma County’s position as a recognized worldclass wine region •To increase sales of wines produced from Sonoma County grapes. •To increase recognition for every AVA within Sonoma County, and ensure that consumers understand where they are.
- 13. Expanding Sonoma County BrandFood and Craft Beverages
- 14. Expanding Sonoma County BrandCraft Beverages •EDB interns indentified emerging industry •Created first local industry report for Craft Beverage •Excellent fit with Sonoma County Brand and Tourism •Well received in banking community
- 15. Craft Brewery National Trends More than 2,300 Craft Breweries in U.S. Craft beer sales increased 15% in 2012 Number of craft distilleries has increased fivefold in the last five years Craft cider sales increased 70% in 2012
- 16. Sonoma County Trends Craft beer sales increased 41% in 2012 Three distilleries in Sonoma County using locally sourced ingredients to win national awards California Cider Company is the largest family owned cidery in the United States
- 18. Economic Impact Estimated total economic impact of craft brewery industry is $123 million 680 jobs supported by craft breweries Lagunitas Brewing Company employs 50% of Sonoma County’s brewery industry
- 19. Growth Trends In the next year: 95% expect to expand production 85% expect to invest in locations and equipment 65% expect to hire more full-time workers Impediments: Permits and Local Regulations State and Federal Regulations Access to Water
- 20. Pliny the Younger Russian River Brewing Company’s Pliny the Younger is released annually in February In 2013, 12,500 people visited the pub, 65% being tourists The estimated economic impact of tourist spending was $2.35 million
- 22. Next Steps- Craft Beverage Industry conference – Fall 2013 Task group to address challenges Creation of Sonoma County Beer Trail Map Regional and National promotion through Sonoma County Tourism
Hinweis der Redaktion
- Thank you for having me. Today I will talk briefly about some topics that Sonoma County is well know for- namely wine and tourism. However I really want to focus on a new and emerging industry that the Economic Development Board is helping to growe-Craft Beverages- Breweries, Cideries and distilleries. Hopefully I can move quickly as I have a short movie produced by two interns in our office at the end.
- First off where is Sonoma County >It is located about 45 minutes north of San Francisco along highway 101. Considered to be part northern most part of the 9 County Bay Area
- I call this my wikipedia slideEconomic Development is very region specific, taking advantage of local assets and building on those, therefore I think it is important to understand a little more about the CommunityNote slow grow culture and focus on environmental sustainability
- Although we have a fairly robust and diverse economy our high cost of living in California and Sonoma County along with a community focus on environmental sustainability and makes the business climate difficult for many traditional manufacturers etc. As I mentioned earlier economic developers most focus on the strengths of the community and find ways to build on these strengths.
- Our Strength… Toursim
- Our Strength… ToursimThese jobs are diverse from farmers to chefs, and anyone who has recently been married on paid for a wedding knows how many people are involved and how expensive it can get
- Over 300 wineriesBy far the most dominate cropAVA- American Viticultural Area is an Alcohol and Tobacco Tax and Trade Bureau (TTB) designation of a distinct wine grape-growing region distinguishable by geographic features, with boundaries defined by the 206 AVAs in the United starts as of October 2012.
- Today, all 50 states produce wine in some fashionTherefore there is more pressure than ever before to strengthen the presence of Sonoma County and its AVAs among world-class wine regions Therefore in 2012 the Sonoma County Tourism, Bureau, Winegrape Growers, and Vinters hired BHC Consulting worked to define a “brand essence” and target audience for Sonoma County’s offerings related to grapes, wine and tourism during an initial phase in the branding effort.Through focus groups with dozens of wineries and surveys of hundreds of consumers, the firm identified a well-educated demographic that is 30 years or older and makes above-average income for their age group as an appropriate target for marketing. That demographic was also defined as “adventure seekers,” those who enjoy travel, outdoor activities and wine as a staple but not dominant part of their experiences.Through adds The Sonoma County branding campaign highlights more than our wine, but builds on our reputation as laid back but adventurous, diverse and focused on small batch premium, wine and food products.
- Examples of some of the ads
- An important aspect of the brand effort is the Sonoma County Brand stamp and how it will be used in conjunctive labeling.
- Exploring implementing the brand mark with local nationally distributed food manufacturers
- We had been hearing a lot of buzz about the rapid growth of our local brewing industry and two interns convinced Executive Director Ben Stone to conduct a economic impact study
- First a little bit about craft brewing on a national stageMore than 2,300, most in 125 years… only 10% of national beer market, but grew by 15%Craft beer makes up 10% of total beer market, but experts believe will capture 20% of total beer revenue ($100 billion market total)Positive demographics, increased craft consumption among MillienialsConsumers increasingly attracted to authentic productsSegment still small and under-developed in many marketsUnprecedented innovation in brewing and marketing
- Sonoma County trends18 breweries in Sonoma County, 8 opened since 2011, sales increased 41% 3 distilleries in Sonoma County, using Sonoma County products to produce award-winning spirits4 cideries in SoCo, 2 opened in the last three years, California Cider Company is the largest family owned cidery in the United States, grew sales 52% in 2012
- respondents to craft beverage survey, found eager to share opinion, 88% response rate results following…
- Estimated total economic impact of craft brewery industry is $123 million about 500 jobs directly created, about another 180 indirectly, 13 times more concentrated in SoCo compared to USLagunitas employs 50% of Sonoma County’s brewery industry, 40% increase in salesutlitizedImplan, direct, indirect and induced..
- Businesesswere asked growth outlook for the next year: stats up above also asked, top impediments to growth permits and local regulations – permit process long and expensive state and fed: especially applicable to distilleries with direct to consumer sales/tasting rooms not allowed – Washington state faced similar laws, legalized in 2008, distillery numbers went from 0 to 40 in 4 years access to water: water is essential to brewing process, could become a major one (Lagunitas survey)
- Laginitas may be the biggest player but little Russian River has a huge impact to tourismPliny the Younger, brewed by RRBC, ranked one of the best beers in the world by beeradvocate.com and ratebeer.com Annually released in February, people come from all of the US and world to try it 2013, 12,500 people, 65% were toursts, 26 states, 5 countries spending $2.35, 44% stayed in hotel, visiting other breweries, wineries, and supporting local economy
- Industry conference planned for Fall 2013Marketing industry to service providers, media and government creating an action plan addressing the top impediments to growthWith national trends moving quickly towards craft beverages and such great assets in Sonoma County, taking advantage on the resources available to promote Sonoma County