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Home
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Working Papers
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State Funded Marketing and Promotional Activities to Support a State’s Winery Business

Working Paper No. 27

Published: 2008
Category:
Business

State Funded Marketing and Promotional Activities to Support a State’s Winery Business

Roger D. Hanagriff, Michael Lau & Sarah L. Rogers
Full Text PDF
Abstract
Texas wineries were surveyed regarding their participation in wine marketing activities, annual changes in gross sales, and level of sales growth attributed to Texas Department of Agriculture’s funding support. The response from the 93 registered Texas wineries was 53 wineries, which was a 57 percent response rate. Senate Bill 1370 allocated $725,000 for marketing and promotion of Texas wines. Combining the $725,000 with the normal funding of $250,000 creates $975,000 in annual support to the Texas wine industry to be used in marketing Texas wine.
The most utilized funded activities are promotional materials and wineries attending TDA supported wine events. Ninety-two percent of Texas wineries recognized an increase in awareness for the Texas wine industry and attribute 49 percent of the increase to state marketing efforts and use of state funding. As previously mentioned, a portion of TDA marketing funds were directed towards supporting wine events in Texas attracting large numbers of consumers for promotional opportunities. Consumers attending these events were surveyed and one result found that 68 percent of consumers reported these events encouraged them to purchase more Texas wines.
Annual economic impact results from all funding activities were $2.16 per $1 of funding of total direct sales increases, $3.93 per $1 of funding in economic impacts of increases in sales and $.40 per $1 of funding in valued added impacts (based on IMPLAN Type II Economic Multiplier values). It is apparent that both direct and indirect economic results were positive towards program funding and created economic growth in local economies.

Submission

Please send your papers as PDF files to the editor, Victor Ginsburgh, at vginsbur@ulb.ac.be
Papers will be quickly reviewed, prior to potential posting on the website. Decision will be to post or not, possibly with short comments, but without referee reports. The decision will be based primarily on the suitability of the paper’s topic to the aims of the Association.
Such decisions are independent of publication decisions for the Journal of Wine Economics.

Working Paper publication requires that at least one author
is a regular member of AAWE.

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