Assessment Of A State Commodity Marketing Program: A Case Study Approach Using 2003-2004 Texas Wine Marketing Assistance Program Evaluation

Abstract

The Texas wine industry is a growing industry that impacts the states economy, offers gains in tourism and provides Texas jobs.  This study shows the gains recognized from Texas Wineries during their participation (2004 fiscal year) in the Texas Wine Marketing Assistance Program (TWMAP) with comparisons made to the initial assessment for 2002 fiscal year.  A questionnaire was created to assess the benefits to the wineries of the state of Texas which participated in the TWMAP program.  When compared to the initial assessment (2002), participating wineries experienced an increase in all categories, for example, average sales, number of wineries participating in the program and visits to the wineries.  A greater number of wineries participated in the programs, and a higher percentage believed that the TWMAP was beneficial to their business.  Thirty percent more wineries reported sales increases, (67% in 2003, 97% in 2004) with average sales increase from $88,983 in 2003 to $109,387 in 2004 creating a total economic impact increase from $4.1 million to $10.1 million.  The ROI increased from 930% to 1,400%. The participants in the TWMAP attribute 35.4% of their sales increases directly to the TWMAP, amounting to $3.57 million in economic benefit for the state, with programming costs of $250,000.  The TWMAP returned over $14 for each $1 of state funds invested, or 1,400% return on state funding.  This was an increase in the already impressive 930% increase in returns reported in 2002.  In light of these trends in this program, it is clear that the TWMAP is establishing a pattern of success and the existence of a marketing campaign has had a successful economic impact on the growth of the Texas wine industry.