IL Labor Market Review Banner

Volume 5, No.2
Summer 1999


Go Home

Archive Articles:
Women in Business: 9.1 Million Women-Owned Businesses in the US

Illinois Wineries: A Growth Industry

Mass Layoffs

Archives

Illinois Wineries: A Growth Industry
By: Mike Vessell and C. Dennis Hoffman

Wine consumption is at an all time high. The debate on the merits of domestic versus imported wine continues. Red wine is even touted to have some health benefits. While Illinois’s wine industry has an economic impact of only $7.5 million a year, the State’s commercial vineyards have doubled from 41 to 82 in the last three years**. And based on a recent survey by the University of Illinois, grape growers plan to increase their current grape growing acreage by 50 percent during the next two years.

Illinois is the fifth largest wine consumption state, spending $600 million on wine annually. Yet, statewide, wine producers currently only develop enough wine to meet one-third of one percent of that demand. The potential for growth is there, both within the State and as an exported product.

Recent statistics demonstrate that both the grape production/harvesting firms (*SIC 0172) and wineries (*SIC 2084) in Illinois are expanding. A strong commitment by state government has resulted in the creation in 1997 of the Wine and Grape Resources Council. The council will promote Illinois wines, encourage wine manufacturing research, assist the grape and wine industry in Illinois and encourage its development. In its first year of existence, the efforts of the Wine and Grape Resources Council contributed to a statewide jump in wine sales from $2 million to $7.5 million***.

The favorable climate and soil in Illinois has contributed greatly to the vineyard boom. Currently, there are 77 vineyards located in 34 counties throughout Illinois with over 75 percent of the grape growers situated in southern Illinois. Although about 120 acres were used for producing grapes in 1998, by the year 2002, over 240 acres are expected to be in production. Roughly, one acre of vines yields four tons of grapes, which produces 140 gallons of wine. In addition, the Pomona Winery in Jackson County uses locally grown apples, peaches, blueberries and strawberries in their wine making process.

Number of Illinois Wineries Nearly Triple from 1990 to 1998
Number of IL Wineries Graph

The number of wineries in Illinois has also exploded during this decade. The total number of commercially bonded wineries was 5 in 1990 and 14 in 1998; four additional wineries are projected to open by March 2000 (it takes four years for a grapevine to mature). As many as 25 wineries are expected to be in operation in Illinois by 2002**.

Nearly 60 percent of the wineries are located in southern Illinois (roughly south of I-70), including Alto, Chateau Ra-Ha, GenKota, Owl Creek, Pomona, Schorr Lake, Spring Pond, VonJakob, and Waterloo wineries. Those in other parts of the State are Galena Cellars, Glunz Family Winery and Cellars, and Lynfred Winery in Northern Illinois; Seminary Winery and Baxter’s Vineyards/Winery (the oldest winery in the State) in the west Central area of Illinois****. Find addresses and phone numbers of Illinois’ wineries, University of Illinois survey information, and a list of grapes grown in Illinois on the Internet at:

http://w3.aces.uiuc.edu/NRES/faculty/Skirvin/cfar/smfru98.htm
http://w3.aces.uiuc.edu/NRES/faculty/Skirvin/cfar/index.htm
(Click on ‘SITE VISITS’ for winery/vineyard descriptions and photos.)

* Standard Industrial Classification Code
** Vintners Show Off at State Fair, Daily Southtown, July 26, 1999.
***Illinois Grape and Wine Industry Fact Sheet, Carbondale, Illinois: Illinois Grape and Wine Resources Council.

****A Guide to the Wineries & Vineyards of Illinois, The Illinois Grape Growers & Vintners Association

Dennis Hoffman holds an MA degree from the University of Illinois at Urbana and has also worked in the Illinois Department of Employment Security Chicago Central Office.

Mike Vessell recieved a BA from Southern Illinois University and served as a Captain in the U.S. Air Force.

Together, Mike and Dennis, frequent contributors to the ILMR, have a total of 57 years of experience with IDES’ Economic Information and Analysis division. Both are Labor Market Economists in our Southern Region.




last update: June 21, 2001