Written by The Business Journal Staff
A new report pegs Covid-19-related losses to California’s wine industry at $4.21 billion, equating to the direct and induced loss of 42,376 jobs.
The report, completed by the Wine Business Institute at Sonoma State University, estimates a $5.9 billion revenue loss for the entire U.S. wine industry this year. Using a revenue multiplier of 2.28, the total loss to California’s economy is estimated at $9.6 billion in business revenues.
The direct $4.21 billion loss may also generate a tax loss of $586 million for state and local government this year, according to the report.
In terms of direct impact, that figure is spread to an estimated $2.8 billion impact to wineries, $1.26 billion for vineyards and $154.4 million for on-premises and off-premise sales.
“The impact of COVID-19 on the wine industry will ripple through all parts of the economy,” according to the report. “Beyond lost jobs and business revenues, state and local governments will see impacts to their budgets and the services that they can provide to citizens.”