Colorado wine industry shows steady growth in production and demand

(DenverPost) - Colorado wine drinkers are purchasing more local wines and willingly spending more to support the homegrown industry.

A report shows a big jump in Colorado wine sales last year and a record high in the market share of locally produced wines.

The industry is still comparatively tiny — accounting for just 2 percent of all wine sales in Colorado by volume and 5.5 percent by dollars spent.

But the growing numbers suggest a maturing sector that is focusing more on quality and building a market for local wine drinkers and tourists alike.

The report, commissioned by the Colorado Wine Industry Development Board, shows that consumers in Colorado paid on average $16.68 per bottle for Colorado-made wine compared with an average of $6.14 for all other wines.

"We see this as an indication that Colorado wine drinkers consider our local wines as a special-occasion selection, perfect for their holiday feasts," said Dawn Thilmany, an economics professor at Colorado State University and the report's lead researcher.

Sales of local wines jumped from $19.1 million in fiscal year 2011 to $28.2 million last year. Production in Colorado grew to 335,000 gallons, a 14 percent increase from the previous year.

In addition to direct sales, wine is a significant contributor to Colorado's tourism industry, especially in the Grand Junction area where many of the state's wineries are located.

CSU researchers concluded that wine tourism generates $103 million annually in direct and indirect economic activity.

The wine industry statewide is valued at an estimated $144 million in sales, employment and secondary economic impacts.