March 1, 2007

THOMPSONVILLE - Michigan wineries and grape growers this week received highlights of a national study which finds that the state's grape juice and wine industry contributes more than $789 million annually to the state's economy, and supports employment of approximately 5,400 Michigan residents. The final report on the economic impact of Michigan's wine, grape and grape juice industry was presented today at the Michigan Wine Industry Annual Meeting at Crystal Mountain Resort in Thompsonville, MI. The MKF Research LLC report reflects an upward revision to preliminary results released in December 2006. Michigan State University Product Center for Agriculture and Natural Resources reviewed and supported the final results.

"The impressive results of this national study confirm that Michigan's juice and wine grape industries are flourishing and significantly benefiting our state's economy," said Mitch Irwin, Michigan Department of Agriculture director and chair of Michigan's Grape & Wine Industry Council. "We are also pleased with the good dialogue between the National Grape Co-operative (Welch's) and Michigan Grape and Wine Industry Council, which is enabling these industries to work through challenges and capitalize on opportunities."

Michigan's development as a significant grape and wine growing region mirrors similar growth in other states around the country. In total, grapes and wine contribute $162 billion annually to the U.S. economy. Both studies were conducted by MKF Research LLC of Napa, Calif., and used the reliable IMPLAN model, and data from both the USDA National Agricultural Statistics Service and Federal Reserve. Michigan is the fourth largest grape producer in the United States. There are approximately 465 grape farmers in the state with 14,400 bearing acres, which produced more than 102,000 tons of grapes in 2005.

Michigan's booming grape juice and wine industries significantly impact both tourism and the preservation of farmland. More than 800,000 tourists visited Michigan's 50 wineries in 2005, with an overall direct effect on the economy of $8.6 million. Wineries included in the research use all or mostly locally grown fruit to make wines that won more than 600 medals in 2006 at national and international competitions.

Concord and to a lesser extent, Niagara, are Michigan's dominant grape varieties, the majority of which is used for non-fermented products such as Welch's grape juice. The impact of the grape juice industry on the Michigan economy is estimated at $503 million. There are many emerging positive health benefits associated with the consumption of grape juice that have the potential to greatly increase the market growth of these products.

Among the key findings:

• Total economic impact: $789.3 million
• Employment: 5,400 full-time equivalent jobs
• Wages paid: $190 million
• Wine-related tourism expenditures: $8.6 million
• Number of wine-related tourists: 800,000
• Michigan wine sales: $33.5 million
• Grape sales: $22 million
• Grape juice production value: $173.3 million

For more information on Michigan's grape and wine industry, visit: www.michiganwines.com. To receive a copy of the Economic Impact Final Report, call the Michigan Grape and Wine Industry Council at (517) 241-4468.