US: Minnesota's nascent wine industry sees growth, and challenges

Minnesota's wine industry has nearly doubled in size since 2007, and a new study points to more growth ahead.

Researchers at the University of Minnesota found that half of the 101 vineyard owners surveyed have plans to expand in the next two years. Among the 34 Minnesota wineries surveyed, three-fourths have expansion plans in the next five years. And newcomers are joining the party all the time.

"We are a $59 million industry (in Minnesota), between the grape growers and the wineries and the winery tourists," said university community researcher Brigid Tuck, who authored the study with economist William Gartner.

"From being a place where you really couldn't grow grapes, this is a pretty dramatic shift," Tuck said.

(TwinCities) - The growth was fueled by the rise of cold-tolerant grape varieties, more relaxed liquor laws and a new generation of winemakers.

But as the novelty wears off, Tuck believes the industry will face new challenges and "will need to capitalize on opportunities to grow and develop," including looking for new ways to market and promote.

"Right now, a lot of the sales for our wineries (63 percent) are going through the tasting rooms," Tuck said. "And most of them are located in rural areas. That indicates ... most of the wineries are relying on tourists to come to them."

Wineries might consider other paths to market their wines, such as collaborating with local restaurants, working with tourism organizations or teaming with other local partners, she said.

Minnesota wineries sold an estimated 540,000 bottles of wine in 2011, the study said. It also found that nearly half of all acres of grapes grown here were planted since 2007.