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Growing Paso Robles Wine Value

Sunday, February 26, 2006

Buy a bottle of California wine, and you may be savoring the terroir of Paso Robles.

As much as 70 percent to 80 percent of the grapes grown in Paso Robles wine country leave the county and are purchased by some of the country's largest wine companies. The grapes are often blended into wines labeled only as coming from California.

Despite rapid growth in the number of wineries in the North County in recent years, there just are not enough to process all of the grapes grown.

While this is no longer an issue in the much smaller wine appellations of the South County, the exodus of North County grapes translates into lost economic value for San Luis Obispo County in terms of processing jobs and grape prices.

By aggressively branding the region - through nationwide marketing campaigns highlighting local wineries and grape growers - the Paso Robles Wine Country Alliance hopes to enhance the image and value of its wines and wine grapes.

Karen Ross, president of the California Association of Winegrape Growers, said that many of the country's top wine companies, including E&J Gallo Winery, Constellation Brands, The Wine Group and Diageo Chateau & Estate Wines, are believed to be active buyers of Paso Robles grapes.

However, no one knows for sure where the grapes go.

The exodus of grapes translates into lost economic value for the county, which can't be fully calculated, said Bob Lilley, agricultural commissioner for San Luis Obispo County. Wine grapes are the No. 1 cash crop in the county, valued at $127.4 million in 2004.

Too much added-value is currently leaving the county. Grapes are not only hauled out of the county, jobs are being exported. It would be beneficial if we could process the grapes locally.

Vintners and growers echo that the county is supportive of this goal. It allows the building of destination processors, where different grape growers can bring their crops to be processed. That's far more lenient than in Santa Barbara County, which specifies that 50 percent of the grapes processed must be grown on site.

"There is certainly room for expansion in this county for winery processors and county policies have tried to encourage this expansion," said Lilley.

Increasing the recognition of Paso Robles wineries and wine grapes will also translate into raising the region's profile as a destination for wine travelers. An improved tourism infrastructure â€” which is already in the works with a number of new hotels under way for Paso Robles - could equal increases in transient occupancy taxes and sales taxes as well as many more jobs in tourism and industries that support tourism.

In response to requests by local growers, the Wine Country Alliance is putting together its first growers' tour. It wants to connect local grape growers with major wine grape buyers outside the Paso Robles area to educate them on the region.

The tour, which is being conducted in partnership with Joseph W. Ciatti Co., one of the leading wine brokerage firms, will travel to the Napa, Sonoma and Lodi wine regions on May 8 and 9. Jacob anticipates that about 30 growers will participate in the road show.

Educating buyers about the quality of the grapes may allow growers to place their harvest with producers that are selling higher priced wines.

Another recognition of increased value, say industry experts, is the identification of a region on a wine label. When wineries specify the region, such as Napa or Sonoma County, it is because the buyer will recognize the quality of the region even if it doesn't know a particular winery.

For this reason, the Wine Country Alliance is also aggressively marketing the Paso Robles wine region. It kicked off its second Grand Tasting Tour in early February, taking approximately 30 Paso Robles wineries on the road to meet with trade and media professionals in Atlanta.

Read More: The Tribune, Ermina Karim

Tags: San Luis Obispo Central Coast Wine