1. The Southern Oregon Wine
Institute: Development of a
Business Incubator to Support
the Growth of a Regional Wine
Industry
Chris Lake
Southern Oregon Wine Institute
Umpqua Community College

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. 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. An Economic Development Project
• Service Area = 23742 sq. mi.
• Equal to 6149150 hectares

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. 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. Southern Oregon is Desirable for
Growing Fine Winegrapes
Geographic Data = 140,000 Ac. Suitable for
vineyards. (56655 Hectares)
40,000 are Prime Vineyard Sites (16187
Hectares)
Land Values are Low Compared to Other
Wine Regions

8. Southern Oregon is Desirable
On The 'it' list for 2010 travel, Sunset
Magazine, January 2010
“The next big wine country = Southern
Oregon
Why 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. The Wine Industry is Large
The US is the Worlds Largest Consumer
of Wine in 2011
•Total wine sales in the U.S. climbed to a new record of
347.0 million cases, a 5.3 percent jump from 2010, with
an estimated retail value of $32.5 billion
•This is the 18th consecutive year of volume growth in
the U.S.
Of 300 Million People in the US, Only 28
Million Consume Wine
Source: The Wine Institute

11. 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 2009
Cabernet
Sauvignon $2,020 $2,100 - - $1,910 $1,770 - $1,500 $1,700 $1,370
Chardonnay $1,250 $1,340 $1,950 $1,620 $1,000 $1,220 $1,470 $1,700 $950 $1,330
Merlot $1,810 $2,180 - - $1,470 $1,800 - - $1,540 $1,010
Pinot Gris - $1,500 $1,400 $1,250 $1,370 $1,330 $1,330 $1,430 $1,320 $1,400
Pinot Noir $2,110 $1,990 $2,820 $2,340 $1,670 $1,820 $2,300 $2,180 $2,000 $2,140
White Riesling $1,080 $1,070 $1,150 $950 $1,280 $1,400 $1,180 $1,240 $980 $1,050
Source: National Agricultural Statistical Service

12. An Economic Development Project
• Start-Up Funds Secured
• Curriculum Developed
• Degree and Certificates Approved
• Director Hired in July 2008
• Begin Planning for Wine
Incubator

13. 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

14. Curriculum Developed
• Study of Curriculum from Other
Schools
• Industry Input on Outcomes
• Modeled on Distance Education
but Includes Face-To-Face
components

15. Begin Planning for Wine Incubator
• Based on Winery Type Found in
Regional Industry
• Input Sought from Industry
• Hire Design Firm w/Wine
Production History

16. An Economic Development Project
The Project Includes:
 Headquarters for SOWI
 Student Vineyard
 Commercial-scale Winery
 Internationally Recognized
Testing Laboratory
 Wine Incubator

17. Wine Incubator

18. Wine Incubator

19. Wine Incubator

20. Wine Incubator
Construction
begun 9/10/10
Completed in
December 2011
Local Capital
Campaign rasied
$2.5 M
Recovery Zone
Bonds issued -
$4.25 M

21. Thank You
Chris Lake
Southern Oregon Wine Institute
Umpqua Community College
chris.lake@umpqua.edu
Website
www.sowicellars.com