Economic Impact of COVID-19: New Report from Sonoma State University Shows $9.6 Billion Loss to CA Economy from Wine Industry Decline

​Rohnert Park, CALIFORNIA – The Wine Business Institute at Sonoma State University has issued a new report estimating that the California economy will experience a loss of nearly $10 billion from a decline in revenues to the state’s vintners and growers because of COVID-19. California’s wine industry is projected to lose $4.22 billion in revenues in 2020, based on significant decreases in on-premise, tasting room, and direct sales, according to an analysis by Jon Moramarco of bw166 released in April. That analysis estimated a $5.9 billion revenue loss for the entire U.S. wine industry this year.

California wine’s role in the travel and hospitality sectors across the state creates economic connections to hundreds of other businesses, according to the SSU report, which measured lost business revenue based on direct, indirect, and induced economic impacts. In addition to forecasting a contraction of $9.6 billion in the California economy, the Sonoma State report projects a loss of 42,376 jobs and $586 million in state and local taxes in 2020 from COVID-19 related losses to wineries and growers.

“The California wine industry’s loss will have a ripple effect throughout the California economy because of the strong link to tourism, restaurants and related business sectors. We anticipate a challenging recovery period ahead,” said Ray Johnson, executive director of the Wine Business Institute at Sonoma State University.

View the Sonoma State University Report here.

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Media Contacts:

Ray Johnson, Executive Director
Wine Business Institute, Sonoma State University
ray.johnson@sonoma.edu

Robert Eyler, Dean
School of Extended & International Education
Professor of Economics
Sonoma State University
eyler@sonoma.edu