1. VIRGINIA'S COMMITMENT TO MAKING THE COMMONWEALTH THE WINE CAPITAL OF THE EAST COAST Wineries Unlimited Trade Show & Conference “Best of the East” Grand Gala Virginia Secretary of Agriculture & Forestry Todd P. Haymore March 30, 2011

2. Welcome to the Commonwealth

3. History of Virginia Wine  A 400-Year Old Industry “That’s in its Adolescence”  Wine Production was a Factor Behind Jamestown Company’s Operations Beginning in 1607  In 1619, House of Burgesses Approved “Acte 12;” Required Colonists to Plant & Maintain Ten Vines  Thomas Jefferson Planted European Grape Wine Varieties on Two Separate Occasions at Monticello

4. History of Virginia Wine  Early/Mid-1800s Saw Continued Growth in Production & Exports  In 1873, VA Wine Made from Norton – VA’s Only Native Wine Grape – Named “Best Red Wine of all Nations” at Vienna World’s Fair  Prohibition Effectively Wiped Out Grape Growing & Wine Making in VA for Almost 50 Years  1933 & Beyond, Stagnancy Ruled: Only 15 Acres of Commercial Wine Grape Production 20 Years Later

5. History of Virginia Wine  Renaissance: Mid-70s Saw Birth of Modern VA Industry  New Focus on Using French Hybrids, Vinifera Varietals, Fertilizing Techniques to Help Combat Disease, Mildew  Zonin Family Sent Gabrielle Rausse to VA; Barboursville Founded in 1976  VA Farm Winery Law, USDA & State University Technical Aid Helped Industry Grow, Improved Product Quality  By End of Decade, VA was Home to Six Wineries

6. Virginia Wine Today  VA is 5 th Largest Wine Producing State in U.S., Following CA, OR, WA, NY  Wine Grapes Reached VA’s Top 20 Ag Commodities List in 2009; Cash Receipts of $13 Million  Receiving Domestic & International Awards & Acclaim  Recognized by Travel + Leisure as a “Top Five Wine Regions on the Rise;” Joined by Chile, Italy, New Zealand, Spain

7. Virginia Wine Today Top Wine Grape Variety Production (Rank)  Reds  Cabernet Franc (2 nd )  Merlot (3 rd )  Cabernet Sauvignon (4 th )  Petite Verdot – “With a Bullet”  Whites  Chardonnay (1 st )  Viognier (5 th )

8. Virginia Wine Today  Virginia Tourism Corp: More Than 1 Million Tourists Visit VA Wineries Annually; Approximately $57 Million Generated  Almost 200 Licensed Wineries Across the State  2005 MKF Study: VA Wine Industry Contributes More Than $360 Million to State’s Economy Yearly, Employs Approximately 3,200 People  Less Than 120 wineries in 2005; Plan to Update EIS During McDonnell Administration

9. Virginia Wine Country

10. Gubernatorial Commitment to Wine  Candidate Makes Wine Industry a Focus of 2009 Campaign for Governor  Wineries & Vineyards Promote Tourism, Support Local Farms, Keep Land in Agricultural Production  Industry Growth Promotion Included in McDonnell’s “Jobs & Opportunities” Agenda During 4-Year Term  Legislative, Budgetary, “Bully Pulpit” Initiatives Began at 2010 Inaugural

11. Successes in 2010  Wine Promotion Fund Increased from $580,000 Per Year to $1.325 Million; Helped to Fund:  New Wine Marketing Office Employee Working to Expand VA Wine Presence in Retail Stores, Restaurants, Wine Shops  Underwriting of Vintage: The Winemaker’s Year; Started Airing Nationally on PBS in October; International Distribution in 2011?  First Ever Dedicated International Marketing Efforts  More Education & Research by VA Tech & PVCC

12. Successes in 2010  First Lady’s FLITE Brings More Attention to VA Wineries; Encourages Retail/Restaurant Sales, Tourism  Trade Missions to United Kingdom; One to Hong Kong  Partnerships with VTC, Domestically & Globally  Created “Choose the Commonwealth!” Campaign to Highlight VA Food & Beverage Products

13. Successes in 2010  European “Circle of Wine Writers” Visit VA  Creation of 1 st Ever “Virginia Wine Week – Love by The Glass” in March  Wineries Unlimited Trade Show & Conference Successfully Recruited to Richmond from PA (March/April 2011)  National Wine Bloggers Conference Chooses Charlottesville (July 2011)

14. Successes in 2010  VA Wine Sales Increase 13% in FY10 vs. FY09  First Half FY11 Sales Up 10% Over Same Period in FY10  2010 “October Virginia Wine Month” Sales Increase Almost 15% vs. 2009 Promotion  VA Wine Distribution Company Sales Up Sharply After Online Purchase System Launched

15. 2011 General Assembly Successes  Winery/Vineyard Tax Credit: Creates a 25% Reimbursable Tax Credit for Establishment or Expansion of Winery or Vineyard; Program Capped at $250,000 for Tax Year 2011  Budget Amendment: Measure Fully Dedicates VA Wine Liter Tax Proceeds to VA Wine Promotion Fund; Yearly Balance Rises/Falls on Wine Sales; Fund Now at $1.6 Million

16. 2011 General Assembly Successes  Corkage: Legislation Allows Restaurant Customers to Bring/Enjoy Their Own Wines; Subject to Restaurant Corkage Fee  Double Taxation: Legislation Removes Tax on VA Wines Shipped to Out-of-State Customers

17. Promoting Virginia Wine in 2011  Continue Work with First Lady on FLITE Winery Tours  Trade Missions to Asia, Canada, UK, Europe, India  Continue Domestic/Global Partnerships with VTC & Private Sector Entities  Host Wineries Unlimited & National Wine Bloggers Conferences, Work to Keep Them in VA!

18. Promoting Virginia Wine in 2011  2 nd Annual “Virginia Wine Week – Love By The Glass” (March 18 – 27)  Planting Chambourcin Vines at Governor’s Mansion; Kick-Off of 200 th Anniversary Celebration  Inaugural Virginia Wine Summit (August)  23 rd Annual “October Virginia Wine Month”

19. Wineries Unlimited – End Thoughts  Wineries Unlimited: Thank You for “Choosing The Commonwealth!” in 2011  Choose The Commonwealth in 2012: Help Us Achieve Governor McDonnell’s Goal of Making VA the Wine Capital of the East Coast

20. Wineries Unlimited – End Thoughts Virginia Looks Forward to Hosting You Again in 2012 and Beyond!

21. Thanks for Supporting VA’s Wine Industry “Wine is like people. The wine takes all the influences in life all around it, it absorbs them and it gets its personality.“ French Kiss (1995) – Kevin Kline as Luc