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Pnrec lake compressed

  1. 1. The Southern Oregon Wine Institute: Development of aBusiness Incubator to Supportthe Growth of a Regional Wine Industry Chris Lake Southern Oregon Wine Institute Umpqua Community College
  2. 2. An Economic Development Project• Established in Fall 2008• Response to Poor Economic Conditions• Decline of the Timber Industry• Unemployment Rate for Region = 15%• The Institute is created serve 7 counties• Wine Industry in Southern Oregon is Growing
  3. 3. An Economic Development Project• Regional Economy had High County Unemployment Coos 14.1% Unemployment in 2009 Curry 14.5%• Rates Higher than State and Douglas 17.2% National Avg. Jackson 13.7%• Institute is designed to Josephine 15.3% serve seven counties in Klamath 15.3% Southern Oregon Lane 13.2% Oregon 12.2% U.S. 9.5% Source: Oregon Employment Dept., July 2009
  4. 4. An Economic Development Project • Service Area = 23742 sq. mi. • Equal to 6149150 hectares
  5. 5. An Economic Development Project • Survey of Industry Needs – 2006 • Focus Groups with Industry • College Forms Steering Committee • Economic Modeling by CC Benefits, Inc. • Modeled Growth of Southern Oregon Industry based on Growth of Wine Cluster in Walla Walla, Washington
  6. 6. The Walla Walla Wine Cluster Factsheet for the Walla Walla Wine Industry Cluster 2010 Total jobs in wine production and wine tourism in 2010 1,620 Jobs Total jobs dependent on the wine cluster including multiplier effects 4,833 Jobs Total earnings in wine production and wine tourism in 2010 $69 Million Total earnings dependent on the wine cluster including multiplier effects $153 Million Total jobs (including multiplier effects) projected to be dependent on the wine cluster in 2020 6,850 Jobs Percent of all jobs dependent on the wine cluster in 2010 13% Projected percent of all jobs dependent on wine cluster in 2020 16% Annual average growth in direct wine cluster employment, 2000 to 20% Annual 2010 Growth Overall growth in the regional economy, 2000 to 2010 9% Overall growth in the regional economy, 2000 to 2010 absent the -3% wine cluster
  7. 7. Southern Oregon is Desirable for Growing Fine WinegrapesGeographic Data = 140,000 Ac. Suitable forvineyards. (56655 Hectares)40,000 are Prime Vineyard Sites (16187Hectares)Land Values are Low Compared to OtherWine Regions
  8. 8. Southern Oregon is DesirableOn The it list for 2010 travel, SunsetMagazine, January 2010“The next big wine country = Southern OregonWhy we love it: Exciting wines, no crowds, and inexpensive tasting fees.Go now: Arm yourself with a map from the Southern Oregon Wineries Association and hit the road”.
  9. 9. The Wine Industry is LargeThe US is the Worlds Largest Consumerof Wine in 2011•Total wine sales in the U.S. climbed to a new record of347.0 million cases, a 5.3 percent jump from 2010, withan estimated retail value of $32.5 billion•This is the 18th consecutive year of volume growth inthe U.S.Of 300 Million People in the US, Only 28Million Consume Wine Source: The Wine Institute
  10. 10. Price Per Ton of Grapes, 2008-2009 Variety North South By Columbia Willamette Rogue Willamette Umpqua Region River Valley Valley Valley Valley 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009CabernetSauvignon $2,020 $2,100 - - $1,910 $1,770 - $1,500 $1,700 $1,370Chardonnay $1,250 $1,340 $1,950 $1,620 $1,000 $1,220 $1,470 $1,700 $950 $1,330Merlot $1,810 $2,180 - - $1,470 $1,800 - - $1,540 $1,010Pinot Gris - $1,500 $1,400 $1,250 $1,370 $1,330 $1,330 $1,430 $1,320 $1,400Pinot Noir $2,110 $1,990 $2,820 $2,340 $1,670 $1,820 $2,300 $2,180 $2,000 $2,140White Riesling $1,080 $1,070 $1,150 $950 $1,280 $1,400 $1,180 $1,240 $980 $1,050 Source: National Agricultural Statistical Service
  11. 11. An Economic Development Project • Start-Up Funds Secured • Curriculum Developed • Degree and Certificates Approved • Director Hired in July 2008 • Begin Planning for Wine Incubator
  12. 12. Start Up Funds Secured• Douglas Co. Industrial Dev. Board• Cow Creek Band of Umpqua Indian Tribe• Wal-Mart Foundation• USDA RBEG• US Dept. of Commerce - EDA
  13. 13. Curriculum Developed• Study of Curriculum from Other Schools• Industry Input on Outcomes• Modeled on Distance Education but Includes Face-To-Face components
  14. 14. Begin Planning for Wine Incubator • Based on Winery Type Found in Regional Industry • Input Sought from Industry • Hire Design Firm w/Wine Production History
  15. 15. An Economic Development Project The Project Includes:  Headquarters for SOWI  Student Vineyard  Commercial-scale Winery  Internationally Recognized Testing Laboratory  Wine Incubator
  16. 16. Wine Incubator
  17. 17. Wine Incubator
  18. 18. Wine Incubator
  19. 19. Wine IncubatorConstructionbegun 9/10/10Completed inDecember 2011Local CapitalCampaign rasied$2.5 MRecovery ZoneBonds issued -$4.25 M
  20. 20. Thank You Chris LakeSouthern Oregon Wine Institute Umpqua Community College chris.lake@umpqua.edu Website www.sowicellars.com

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