CALIFORNIA WINE/VITICULTURE OCCUPATIONS ENVIRONMENTAL SCAN. July Prepared by: Centers of Excellence Los Rios Community College District

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1 CENTERS OF EXCELLENCE Inform Connect Advance WINE/VITICULTURE OCCUPATIONS ENVIRONMENTAL SCAN CALIFORNIA July 2015 Prepared by: Centers Excellence Los Rios Community College District

2 TABLE OF CONTENTS Executive Summary... 3 Introduction... 4 Industry Composition... 4 Supply Chain... 5 Economic Impact... 5 Drivers Growth... 6 Issues and Challenges... 6 Occupational Employment... 7 Wages... 8 Education Work Experience...10 Skills and Abilities Employer Challenges...15 Small Owner-Operated Wineries and Vineyards College Response and Issues Business Partnerships...18 Training Gap Assessment...19 Conclusion and Recommendations...20 Appendix A: How Utilize this Report...21 Appendix B: Survey Methodology Acknowledgements The Centers Excellence (COE) would like acknowledge and thank Nancy Gutierrez, Secr Navigar for Agriculture, Water & Environmental Technologies, for her involvement in developing the research objectives, refining the survey instrument and providing overall technical expertise. We would also like extend our sincere appreciation the following individuals for reviewing the survey instrument: Conner Best, Member Relations Manager, Napa Valley Vintners Becky Peterson, Member and Community Relations Direcr, Napa Valley Vintners David Duncan, President/CEO, Silver Oak Cellars/Twomey Cellars The COE would also like thank the 420 employers throughout California who ok the time complete the survey. This information is critically important California community colleges and educational partners as they develop and strengthen training and education programs in the region. 2 ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

3 EXECUTIVE SUMMARY California wineries and vineyards employ as many as 41,000 workers. The wine industry is expected grow by five percent over the next 12 months adding 1,700 new jobs the economy. Source: COE Wine Workforce Survey, 2015 California s wine industry employs 41,000 workers (excluding seasonal and temporary employees). Over the next 12 months, the wine industry is expected grow by five percent, adding 1,700 jobs. The wine industry generates billions revenue each year, contributing the state and local economies through job creation, sales taxes, and corporate taxes. While most industries experienced declines during the recent recession, California s wine industry performed well with reported increases in harvests and yields, sales volume, and export revenue. The State the Wine Industry 2015 report predicts that the wine industry will continue grow in the coming year due economic facrs, pricing opportunities and record yields. Given the strong growth the wine industry, the Centers Excellence conducted a statewide study better assess the wine industry s training and employment needs. Between February and April 2015, 420 vineyards and wineries across the state participated in a workforce needs survey. The research focused on identifying: Short-term labor market demand for technical occupations Current training supply supporting the wine industry Key issues impacting supply and demand, such as employer hiring challenges, education preferences and skill requirements Eight occupations were selected for inclusion in the survey, including four technical positions: laborary technician, cellar worker, winemaker/assistant winemaker, assistant vineyard manager/vineyard manager and four non-technical positions: sales representative, logistics coordinar, tasting room associate, and event manager. California wineries and vineyards employ approximately 7,700 technical positions. Over the next three years, this industry is projected add more than 1,050 new technical jobs and need replace about 270 existing workers. Due a limited sample size, employment estimates and projections were not calculated for non-technical occupations. Most wine and vineyard employers require postsecondary education for both the technical and non-technical occupations, with the exception cellar workers. The preferred educational background for assistant winemaker/ winemaker and laborary wine technician is an enology degree, while the preferred background for assistant vineyard manager/vineyard manager is a viticulture degree. Employers that require sales representatives, logistics coordinars, and event managers have an associate degree or higher reported no preference for the type degree; just that the applicant have one. More than one year work experience is typically required for all the positions except cellar worker and tasting room associate. Assistant vineyard manager/vineyard manager and assistant winemaker/winemaker positions likely require a minimum three or more years related work experience. In California, there are seven community colleges and three public universities that fer viticulture and/or enology programs, conferring about 165 certificates and degrees annually. California community college programs prepare students for direct employment in the field as well as transfer four-year universities. Based on the projected demand and average supply newly trained workers over the past three years, California s wine industry may experience a shortage nearly 300 qualified applicants entering the field by California community colleges can support the wine industry by aligning existing curriculum technical positions (except cellar workers); adding an internship component the curriculum provide students with hands-on experience that will better prepare them for entry-level employment; and maintaining and developing articulation agreements with enology and viticulture university programs. ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 3

4 INTRODUCTION The wine industry has long been a strong catalyst benefitting California s economy. Due favorable soils, pography and climate conditions, California wineries produce over 110 varieties, more than any other state in the nation. California vineyards and wineries employ nearly 41,000 workers throughout the state with significant concentrations employment in the North Bay, North Valley and South Central Coast. 1 To better assess the training and employment needs the wine industry, the Centers Excellence conducted a survey 420 vineyards and wineries across the state. The research focused on identifying: Short-term labor market demand for technical occupations Current training supply supporting this industry Key issues impacting supply and demand, such as employer hiring challenges, education preferences and skill requirements This report provides an overview the industry, including industry composition, economic impact, key drivers growth, and industry issues and challenges. In addition, this report provides an in-depth analysis the workforce demand, education and training requirements, and educational supply. It also provides a training gap assessment that compares the supply newly trained workers and the projected number job openings for technical occupations. INDUSTRY COMPOSITION Across California there are about 2,200 wineries and vineyards. Half these establishments are located in the North Bay region with a high concentration in Sonoma and Napa counties. 2 Nearly all the wineries and vineyards are privately owned, with only one percent publicly traded. 3 Wineries and vineyards employ nearly 40,000 workers, with the highest concentration employment in the North Bay. Over the next 12 months, the wine industry expects add 1,900 new jobs, a growth rate five percent. This estimate excludes temporary, seasonal or contract workers. Exhibit 2: Industry Growth By Region 2 Exhibit 1: Wineries and Vinyard Establishments by Region 2 North Valley 9% All Other Counties 24% SCC 1 North Bay 51% Description Full-Time Employees Part-Time Employees Total 2015 Employees Projected 2016 Employment New Jobs 12- Month Growth Rate North Bay 14,223 4,898 19,121 19, % North Valley 7,783 1,565 9,348 9, % South Central Coast 3,418 2,227 5,645 5, All Other Counties 3,195 2,032 5,227 5, % California 28,619 10,722 39,341 41,237 1,896 5% 1 Appendix B, Survey Methodology, provides definitions the regions. 2 COE Wine Workforce Survey, 2015; Extrapolated estimate for tal employment across the industry. 3 ReferenceUSA InfoGroup, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

5 SUPPLY CHAIN California s vineyards grow approximately 570,000 acres wine-type grapes annually. 4 They either produce wine onsite or sell their grapes wine processing facilities. In the typical supply chain, wineries sell their bottled wines wholesalers that manage sales and distribution. In addition, wineries ten provide direct services consumers, such as wine tasting, wine clubs, and/or events. Within the supply chain, there are subsecrs that provide support services for growing, making and selling wine. These services include providing vineyard plants or root sck; consultation on vineyard and winery science, technologies, equipment and materials; marketing and sales; and direct--consumer technologies. 5 California s wine industry encompasses all four areas the supply chain. Exhibit 3: Wine Supply Chain Vineyards Wineyard plants Vineyard science Equipment & materials Wineries / Production Winery science and technologies Bottling Wholesale Trade Marketing and Sales Logistics Retail Trade Tasting rooms Direct--consumer technologies ECONOMIC IMPACT In 2013, California s wine industry generated nearly $19.6 billion in revenue: $9.5 billion in the Central Valley, $8.2 billion in Northern California and $1.8 billion in Southern California. The majority firms in this industry generate between $500,000 and $2.5 million in sales. Exhibit 4: Total Establishments by Sales Volume 6 $ Million, 1% $10-$50 Million, 3% More than $100 Million, >1% $5-10 Million, Sales in the wine industry have a significant impact on the economy. Not only does revenue generated by wineries and vineyards contribute the state and local economies through sales taxes, and corporate taxes, it also generates activity among firms in the supply chain. This equates more employment and increased local tax revenue across the industry and supply chain. $2.5-5 Million, 8% $1-2.5 Million, 48% Less Than $500,000, 27% $500,000 - $1 Million, 7% 4 California Grape Acreage, 2013 Crop Report. US Department Agriculture. National Agricultural Statistic Services. Accessed 4/20/ Direct--consumer technologies connect wine producers directly consumers through e-commerce, online sre management, and promotions. 6 ReferenceUSA InfoGroup, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 5

6 DRIVERS OF GROWTH Last year, California exported 49 million cases wine valued at $1.5 billion, a 64% increase from The Wine Institute (International Exports) ISSUES AND CHALLENGES While most industries experienced declines during the recent recession, California s wine industry performed well with reported increases in harvests and yields, sales volume, and export revenue. The economic stability the wine industry is influenced by the strength the U.S. dollar, current interest rates, consumer confidence and supply and demand. On the ground, these drivers are measured by: the annual harvest and crush statistics that point the supply; consumers purchasing patterns that indicate changes in wine consumption and demand; the number additional retail outlets selling wine; and urism that can boost sales and prices. The State the Wine Industry 2015 report projects that the wine industry will grow in the coming year due economic facrs, pricing opportunities and record yields. 7 While the industry is expected perform well in the near term, it has several challenges related the environment and sustainability. These include: Using water resource management practices and technologies in the efficient consumption water in vineyards and wineries and during drought conditions inform planting and production decisions. Employing integrated pest management (IPM) programs prevent and control pests and diseases. Using established procols for clean vine sck by testing mother vines for diseases, propagating in sterile nurseries, and planting in appropriate climates prevent pathogens. Adopting and implementing sustainable wine growing practices, and assessing environmental performance improvements. Upgrading capacity and accuracy by employing innovations in enology and viticulture science and technology such as precision farming (electronic moniring ols and robotics; use evapotranspiration ET sensors); vineyard aumation mechanization (optical grape sorters and processing systems; crushing and bottling technology); and laborary instruments, supplies and chemicals. Reducing reliance on temporary labor support a larger, permanent workforce by adopting vineyard mechanization and precision farming innovations that minimize manual labor by saving time and effort. Increasing financial investments in science and technology for future growth in the industry. 7 State the Wine Industry Silicon Valley Bank. 6 ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

7 OCCUPATIONAL EMPLOYMENT This section the report provides an overview eight occupations employed by California s wine industry. The eight occupations selected for inclusion in the survey include four technical positions and four non-technical positions. Technical Positions: Assistant vineyard manager/vineyard manager Assistant winemaker/winemaker Cellar worker Laborary technician Non-Technical Positions: Event manager Logistics coordinar Sales representative Tasting room associate Over the next three years, the wine industry is projected add more than 1,000 technical jobs and replace 270 technical positions. 8 Cellar worker is the largest technical position in the group with 3,330 jobs. California winery and vineyard employers will need hire over 500 cellar workers during the next three years keep pace with industry growth and replacement needs. Winemaker/assistant winemaker is the second largest occupation with approximately 1,700 positions in the state and as many as 260 openings estimated over the next three years. Exhibit 5: Three-Year Employment and Retirement Projections, Wine and Vineyard Occupations Jobs 2018 Jobs New Jobs 3-Year Growth Rate Expected Retirements Total Openings Total Annual Openings Cellar Worker 3,330 3, % Winemaker/Assistant 1,686 1, % Winemaker Vineyard Manager/ 1,638 1, % Assistant Vineyard Manager Laborary Technician 1,078 1, % Total 7,733 8,784 1, , As shown below, all four occupations are projected experience steady growth over the next three years. Laborary technician is the fastest growing occupation, followed by assistant vineyard manager/vineyard manager, cellar worker, and assistant winemaker/winemaker. Exhibit 6: Three-Year Employment Projections, Wine and Vineyard Occupation 9 4,000 3,500 3,000 2,500 2,000 1,500 1, * 2018 Laborary Technicians 1,078 1,145 1,213 1,280 Cellar Worker 3,330 3,515 3,659 3,765 Assistant Winemaker/ Winemaker 1,686 1,716 1,776 1,866 Vineyard Manager/ Assistant Vineyard Manager 1,638 1,711 1,790 1,874 Jobs * The 2017 one-year employment estimate is based on trend lines, not survey data. 8 Due a limited sample size, employment estimates and projections were not calculated for sales representative, logistics coordinar, tasting room associate, and event manager. 9 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 7

8 WAGES The following table and exhibit display the median and experienced wages for full-time wine and vineyard occupations in California. Entry-level is defined as less than three years related work experience and experienced is more than three years related work experience. Assistant winemaker/winemaker is the highest paid occupation in the group with entry-level earnings starting at $42,000 and progressing $60,000 annually. Assistant vineyard manager/vineyard manager is the second highest paying occupation starting at $40,000 and progressing $55,000 as the manager gains more work experience. It is important note these occupations combine two levels employment which may be lowering the median wage for the higher level position as well as raising the median wage for the less experienced position. Laborary wine technician, cellar worker and tasting room associate are the lowest paid occupations in the group. These three occupations have lower experienced wages than the median for all occupations across California. 10 Exhibit 7: Median Wages, Wine and Vineyard Occupations 11 Occupation: Entry-Level Experienced Assistant Winemaker/Winemaker 42,000 60,000 Assistant Vineyard Manager/Vineyard Manager 40,000 55,000 Sales Representative 35,000 50,000 Logistics Coordinar 35,000 45,000 Event Manager 32,000 45,000 Laborary Wine Technician 34,000 42,000 Cellar Worker 25,000 35,000 Tasting Room Associate 24,000 32,000 Exhibit 8: Median Wages, Wine and Vineyard Occupation 11 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Assistant Winemaker/ Winemaker Assistant Vineyard Manager/ Vineyard Manager Sales Representative Logistics Coordinar Event Manager Laborary Wine Technician Entry-Level Experienced Cellar Worker Tasting Room Associate 10 EMSI Median wages for all occupations across California are $21.83 per hour or $45,406 annually. 11 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

9 EDUCATION Employers were asked identify the minimum education requirement for their wine and vineyard workers. Most wine and vineyard employers require postsecondary education for seven the eight occupations. More specifically: Half the employers require laborary wine technicians have completed postsecondary courses, a certificate or associate degree. Another 4 require a bachelor s degree or higher. Two out three employers require assistant winemakers/winemakers have obtained a bachelor s degree. The majority employers do not require cellar workers have a postsecondary education. Education requirements vary significantly for assistant vineyard manager/vineyard manager: 2 require a high school diploma or less; 34% require postsecondary courses, a certificate or associate degree; and require a bachelor s degree. More than half the employers require sales representatives have completed postsecondary courses, a certificate or associate degree. Another 4 require a bachelor s degree or higher. Half the employers require logistics coordinars have completed postsecondary courses, a certificate or associate degree. Two out five employers do not require tasting room associates have a postsecondary education, while 45% require some college, no degree (courses). Two out five employers require event coordinars have some college or an associate degree, while another 30% require a bachelor s degree. Exhibit 9: Minimum Education Requirements, Wine and Vineyard Occupations 12 Laborary Wine Technician 7% 33% 11% Assistant Winemaker/Winemaker 3% 7% 1 5% 4% 69% Cellar Worker 14% 57% 18% 1% 8% 3% Assistant Vineyard Manager/Vineyard Manager 17% 3% 14% Sales Representative 4% 11% 43% 11% 24% 4% Logistics Coordinar 24% 24% 3% 21% 29% Tasting Room Associate 4% 38% 45% 11% Event Manager 28% 30% 13% 30% 0% 10% 30% 50% 60% 70% 80% 90% 100% Less than High school High school diploma or equivalent Some college, no degree Post-secondary Certificate Associate s Degree Bachelor s Degree Master s Degree 12 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 9

10 EDUCATION Exhibit 10 displays the preferred educational backgrounds for occupations where the majority employers (50% or more) require an associate degree or higher. The preferred degree for laborary wine technicians as well as assistant winemaker/ winemaker is enology. Fermentation was a close second for winemakers. The preferred degrees for assistant vineyard manager/vineyard manager include viticulture, plant science/horticulture, and enology. Employers that require sales representatives, logistics coordinars, and event managers have an associate degree or higher reported no preference for the type degree. Exhibit 10: Preferred Degrees, Wine and Vineyard Occupations 13 1st Choice 2nd Choice 3rd Choice Laborary Wine Technician Enology Chemistry Fermentation Science Assistant Winemaker/Winemaker Enology Fermentation Science Viticulture Assistant Vineyard Manager/Vineyard Manager Viticulture Plant Science/Horticulture Enology WORK EXPERIENCE Two the eight wine and vineyard occupations (tasting room associate and cellar worker) typically require less than one year work experience. The majority employers require two or more years related work experience for event managers, logistics coordinars, sales representatives, and laborary wine technicians. Assistant vineyard manager/ vineyard manager and assistant winemaker/winemaker have a minimum three or more years related work experience. Exhibit 11: Minimum Work Experience Requirements, Wine and Vineyard Occupations 13 Event Manager 11% 27% 25% 14% Tasting Room Associate 21% 25% 3 14% 5% Logistics Coordinar 10% 28% 31% 13% 18% Sales Representative Assistant Vineyard Manager Vineyard Manager 4% 9% 24% % 9% 30% Cellar Worker 1 25% 34% 3% 1% Assistant Winemaker/Winemaker 4% 13% 2 21% 41% Laborary Wine Technician 15% 41% 25% 7% 0% 10% 30% 50% 60% 70% 80% 90% 100% No work experience Less than 12 months related experience 1 year related experience 2 years related experience 3 years related experience 4 or more years related experience 13 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

11 SKILLS AND ABILITIES Exhibits 12 through 19 display the skill requirements for the eight wine and vineyard occupations selected for the study. For each occupation, the respondents were asked review a list common skills and abilities, derived from an analysis online job posting data, and rank how necessary they were the position. Respondents ranked each skill/ability based on the following scale: Must Have the applicant must have the skill otherwise he/she will not be considered for the position Prefer have you would prefer the applicant have the skill however you would consider an applicant if he/she didn t have the skill; though it is not ideal Not Required this skill is not very important and is something that can be easily trained on the job Not Applicable the skill does not apply the position Skills and abilities with 50% or higher must have rankings should be considered critical skill requirements that occupation. Training programs should incorporate these skills in their curriculum prepare students for the viticulture and enology field. Exhibit 12: Skill Requirements, Laborary Wine Technician 14 Ability add, subtract, multiply and divide in all units measure, using whole numbers, common fractions and decimals good sanitary laborary practices 79% 87% 19% 13% Ability read, analyze and interpret technical procedures 7 24% 4% Ability conduct chemical analysis juice and wine 7 24% 4% Ability perform daily calibrations and troubleshooting 64% 3 quality control measures 53% 4 5% Ability conduct statistical analysis data 38% 4 21% 0% 10% 30% 50% 60% 70% 80% 90% 100% Must Have Prefer have Not Required / Not Applicable 14 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 11

12 SKILLS AND ABILITIES Exhibit 13: Skill Requirements, Assistant Winemaker/Winemaker 15 quality quality control control measures measures 73% 73% 2 2 1% 1% Ability Ability perform perform basic basic lab lab tests tests 61% 34% 5% Ability quality write control reports, measures 61% business 73% 34% 2 5% 1% Ability write reports, business correspondence and procedure manuals 47% 38% 15% correspondence Ability and perform procedure basic lab manuals tests 47% 61% 38% 34% 15% 5% wine tracking stware, such as 19% 4 3 WMS Ability wine tracking stware, such as Wine write Management reports, business Systems 19% 4 3 correspondence WMS - Wine and Management procedure manuals Systems 47% 38% 15% wine tracking stware, such as 0% 0% 10% 10% 30% 30% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% 19% % WMS - Wine Management Systems Must Must Have Have Prefer Prefer have have Not Not Required Required / Not Not Applicable Applicable 0% 10% 30% 50% 60% 70% 80% 90% 100% Must Have Prefer have Not Required / Not Applicable Exhibit 14: Skill Requirements, Cellar Worker 15 Ability Ability read read and and comprehend comprehend work work orders orders 75% 75% 5% 5% barrel barrel operations: operations: 49% 43% 8% Ability read and racking, racking, comprehend filling filling and work and pping pping orders 49% 75% 43% 8% 5% Ability Ability operate barrel operate operations: a fork fork lift lift 48% 48% 43% 9% 9% racking, filling and pping 49% 43% 8% techniques techniques sanitize sanitize 48% 45% 8% Ability equipment and facility 45% 8% equipment operate and a fork facility lift 48% 43% 9% techniques Basic Basic computer computer sanitize skills skills 19% 19% % 45% 8% bottling equipment bottling line line equipment and facility equipment parts parts 17% 43% including capabilities and limitations 17% 43% including capabilities Basic computer and limitations skills 19% 4 bottling line equipment parts 0% 0% 10% 10% 30% 30% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% 17% 43% 100% including Must capabilities Must Have and limitations Have Prefer Prefer have have Not Not Required Required / Not Not Applicable Applicable 0% 10% 30% 50% 60% 70% 80% 90% 100% Must Have Prefer have Not Required / Not Applicable Exhibit 15: Skill Requirements, Assistant Vineyard Manager/Vineyard Manager 15 harvest harvest operations operations vine pest disease issues vine pest harvest & disease operations issues 70% 70% 77% 28% 28% 21% irrigation practices vine pest irrigation & disease practices issues 68% 68% 70% 30% 28% 30% pesticides pesticides and other farming chemicals and other irrigation farming chemicals practices % 31% 31% 30% 3% 3% Ability Ability monir and repair irrigation trellis systems monir pesticides and repair and irrigation other farming & trellis chemicals systems 65% 6 65% 28% 28% 31% 7% 7% 3% Skilled at managing and directing subordinates % 35% 3% Ability Skilled monir at and managing repair and irrigation directing & trellis subordinates systems 65% 28% 7% 3% Ability Ability maintain maintain farming farming equipment equipment in in 4 43% 11% Skilled accordance with manufactures requirements 4 43% 11% accordance at managing with and manufactures directing subordinates requirements 6 35% 3% Ability OSHA maintain OSHA policies policies farming and and equipment procedures procedures in 41% 41% 53% 53% 4 43% 11% accordance with manufactures requirements Bi-lingual: Bi-lingual: English/Spanish English/Spanish 54% 54% OSHA policies and procedures 41% 53% 0% 0% 10% 10% 30% 30% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% Bi-lingual: English/Spanish 54% 100% Must Must Have Have Prefer Prefer have have Not Not Required Required / Not Not Applicable Applicable 0% 10% 30% 50% 60% 70% 80% 90% 100% Must Have Prefer have Not Required / Not Applicable 77% 77% 21% 21% 15 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

13 SKILLS AND ABILITIES Exhibit 16: Skill Requirements, Sales Representative 16 Ability effectively interact with cusmers via phone 98% Ability effectively interact with cusmers via phone Ability set and achieve sale targets 98% 77% 23% Priciency Ability set in basic and achieve computer sale programs targets 77% 23% (such MS Excel and Outlook) 65% 33% Ability effectively Priciency interact basic with computer cusmers programs via phone 98% (such wine-grape as MS Excel 65% regions and Outlook) 33% in CA 35% 58% Ability set and achieve sale targets 77% 23% Priciency 35% 58% in wine-grape regions in CA basic the winemaking computer programs process 21% 67% 13% (such as the MS winemaking Excel and Outlook) 65% 33% process 21% 67% 13% wine-grape regions in CA 0% 10% 35% 30% 50% 60% 58% 70% 80% 90% 100% 0% 10% 30% 50% 60% 70% 80% 90% 100% Must Have the winemaking Prefer process have 21% Not Required / Not Applicable 67% 13% Must Have Prefer have Not Required / Not Applicable 0% 10% 30% 50% 60% 70% 80% 90% 100% Exhibit 17: Skill Requirements, Logistic Coordinar 16 Must Have Prefer have Not Required / Not Applicable Ability organize and schedule wine movements Ability and organize shipments, and including schedule shipments wine movements tasting room, and shipments, distriburs, including fulfillment shipments centers, satellite tasting 78% 17% 5% room, srage distriburs, locations, and/or fulfillment wholesale centers, accounts satellite 78% 17% 5% Ability srage organize locations, Ability and and/or reconcile schedule wholesale monthly wine movements accounts physical and shipments, including shipments tasting room, distriburs, Ability invenries reconcile fulfillment from multiple monthly centers, locations physical satellite 6 78% 2 17% 1 5% srage locations, invenries and/or from wholesale multiple locations accounts Ability reconcile database monthly systems physical 5 41% database systems % 2 1 invenries from multiple locations Ability generate and send invoices using 54% 39% 7% Ability Quickbooks generate or similar and send accounting database invoices systems using 54% 5 39% 41% 7% Quickbooks or similar accounting system Ability generate wine and shipping send invoices regulations using 41% 49% 10% wine shipping regulations 41% 54% 49% 39% 10% 7% Quickbooks or similar accounting system 0% 10% 30% 50% 60% 70% 80% 90% 100% Must wine Have shipping Prefer regulations have 0% 10% Not Required 41% 30% / Not Applicable 50% 60% 49% 70% 80% 90% 10% 100% Must Have Prefer have Not Required / Not Applicable 0% 10% 30% 50% 60% 70% 80% 90% 100% Ability Must communicate Have effectively Prefer with have Not Required / Not Applicable many different types individuals 93% 7% Ability handle many routine different purchasing types transactions individuals 93% 7% 77% 23% Ability handle with a cash routine register purchasing and P.O.S. transactions system 77% 23% with Ability a cash communicate register Ability and effectively P.O.S. close system with many different types individuals a sale 7 93% 23% 5% 7% Ability handle routine wine purchasing Ability close and food transactions a sale 7 23% 5% pairing 67% 77% 21% 23% 1 with a cash Ability register organize wine and and and food P.O.S. keep pairing system track 67% 21% 1 all products in invenry 49% 37% 14% Ability organize Ability and keep close a track sale 7 23% 5% 49% 37% 14% wine-grape all products and regions food in invenry pairing CA 18% 67% 61% 21% 21% 1 Ability wine-grape organize and regions keep in track CA 18% 61% 21% all products in invenry 0% 10% 49% 30% 50% 60% 37% 70% 80% 90% 14% 100% Must Have Prefer have 0% 10% Not Required 30% / Not 50% Applicable 60% 70% 80% 90% 100% wine-grape regions in CA 18% 61% 21% Must Have Prefer have Not Required / Not Applicable 0% 10% 30% 50% 60% 70% 80% 90% 100% Exhibit 18: Skill Ability Requirements, communicate effectively Tasting with Room Associate 16 Must Have Prefer have Not Required / Not Applicable 16 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 13

14 SKILLS AND ABILITIES Exhibit 19: Skill Requirements, Events Manager 17 Ability coordinate and manage planned events 89% 11% Ability supervise all levels hospitality staff Ability prepare event proposals according clients needs and company policies 67% 64% 29% 33% 7% Ability negotiate contracts 4 49% 9% food and beverage laws 38% 49% 13% 0% 10% 30% 50% 60% 70% 80% 90% 100% Must Have Prefer have Not Required / Not Applicable In addition the common skill requirements, the respondents identified other technical skills required the occupation. Some the other technical skill requirements include: Laborary Wine Technician database management, MS Excel, knowledge lab safety issues and procedures, and knowledge sensory evaluation detect flaws in wine. Assistant Winemaker/Winemaker a good palate, taste and smell, computer skills (MS Excel), knowledge cellar functions, ability operate a forklift, knowledge sensory evaluation, knowledge applicable wine laws and record keeping requirements, ability supervise others and basic accounting skills. Cellar Worker knowledge basic lab equipment, mechanical repair skills, basic mathematic calculations (especially volume measurements and proportions), ability follow instructions, knowledge invenry management, and knowledge sanitization methods and procedures. Assistant Vineyard Manager/Vineyard Manager knowledge the fermentation process related vineyard operations, business writing skills, knowledge biodynamic farming practices, computer skills, knowledge frost protection, knowledge certified organic practices, knowledge farming for wine quality, knowledge nutritional needs vines, soils, and rootscks, ability operate farm equipment, knowledge pruning and propagation, knowledge sustainability best practices, and knowledge budgets. Sales Representative ability sell wine, engage with cusmers, and communicate effectively (verbally and in writing); Master Sommelier certified; and knowledge viticulture. Logistics Coordinar knowledge government permitting and licensing, electrical and mechanical aptitude, and ability operate a forklift. Tasting Room Associate basic computer skills (web, , MS Excel, MS Word), database management, phone skills, knowledge the wine and wine making process, and knowledge wine varieties and wine flaws. Events Manager basic computer skills (MS Excel), ability analyze and prepare budgets, and ability multi-task. 17 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

15 EMPLOYER CHALLENGES Exhibit 20 displays the level difficulty employers reported in finding qualified wine and vineyard workers in California. Employers reported the greatest difficulty finding qualified tasting room associates, sales representatives, assistant vineyard managers/vineyard managers and event managers. About half the the employers reported moderate extreme difficulty finding logistics coordinars, cellar workers, laborary wine technicians, and assistant winemakers/winemakers. Exhibit 20: Difficulty Hiring, Wine and Vineyard Occupations 18 Tasting Room Associate 60% 9% Sales Representative 60% Assistant Vineyard Manager/Vineyard Manager 5 Tasting Event Room Manager Associate 5 60% 9% Logistics Sales Coordinar Representative 4 60% 5% Assistant Vineyard Manager/Vineyard Cellar Worker Manager 48% 5 1% Laborary Wine Event Technician Manager 45% 5 4% Assistant Winemaker/Winemaker Logistics Coordinar 45% 4 3% 5% Cellar Worker 0% 10% 48% 30% 50% 1% 60% 70% Laborary Wine Technician Moderate difficulty 45% Extreme difficulty 4% Assistant Winemaker/Winemaker 45% 3% 0% 10% 30% 50% 60% 70% Moderate difficulty Extreme difficulty SMALL OWNER-OPERATED WINERIES AND VINEYARDS Small owner-operated wineries and vineyards that did not employ the eight occupations selected for the study were asked a short set questions assess their general business goals and workforce needs. Some the owner-operated wineries and vineyards were self-contained entities without employees while others had workers that were responsible for a variety roles and tasks from vineyard field labor mechanical repairs Grow irrigation sales specialist. 6 Maintain current sales As shown in Exhibit 21, two-thirds volume, status quo 27% the small owner-operated wineries and vineyards plan grow their sales over the next three years and about one-quarter plan maintain the status quo. Some the write-in responses for the other category include increasing production, cutting costs, improving quality the wine, and finding a reliable water supply. Exhibit 21: Short-Term Business Goals 18 Raise capital 11% Expand international markets Grow sales 6 Maintain current sales Downsize personnel volume, cut status costs quo 1% 27% Raise Other capital 1 11% Expand international markets 0% 10% 30% 50% 60% 70% Downsize personnel cut costs 1% Other 1 0% 10% 30% 50% 60% 70% 18 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 15

16 SMALL OWNER-OPERATED WINERIES AND VINEYARDS About 2 small, owner-operated wineries and vineyards reported that difficulty finding qualified candidates for open positions had prevented their business from growing. Very few (fewer than 10%) reported challenges related retaining qualified employees, locating qualified staff development training organizations, or funding staff development training. Respondents were asked indicate the likelihood recruiting and hiring graduates from a newly formed viticulture/ enology associate degree or certificate training program in their region. Seventy percent (70%) indicated that they would be somewhat very likely hire graduates from the program. Two-thirds (65%) reported that they would be somewhat very likely recruit graduates from the program, and 60% would be somewhat very likely send current employees take one or more courses. Exhibit 22: Interest in a Community College Viticulture/Enology Associate Degree or Certificate 19 Hire graduates from the program 4 28% Recruit graduates from the program 41% 25% Send your current employees take one or more courses 31% 29% Somewhat likely 0% 10% 30% 50% 60% 70% 80% When evaluating a potential new hire for an entry-level position, the majority wineries and vineyards (63% - 90%) want candidates with eight the nine skills listed below. The most important skill/knowledge areas required entry-level positions is the ability read and comprehend work orders, knowledge vine pest and disease issues, and knowledge quality control measures. In addition, small owner-operated wineries and vineyards require entry-level applicants have extensive knowledge vineyard farming practices such as pruning and training vines, harvesting, measuring soil and vine water status, life cycle grapevines, plant biology and physiology, and organic and sustainable farming methods. Exhibit 23: Skills for Entry-Level Wine and Vineyard Occupations 19 Ability read and comprehend work orders 23% 67% vine pest & disease issues 37% 45% quality control measures 31% 47% OSHA policies and procedures 4 29% pesticides and other farming 3 41% winery and cellar operations 2 39% wine-grape regions in CA 43% 23% good sanitary laborary practices wine shipping regulations 24% 2 39% 27% Somewhat important 0% 10% 30% 50% 60% 70% 80% 90% 100% 19 COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

17 COLLEGE RESPONSE AND ISSUES In California, there are seven community colleges and three public universities that fer viticulture and/or enology certificate or degree programs. On average, these programs confer about 165 certificates and degrees annually. To identify key training priorities, the Centers Excellence conducted a survey community colleges across the state. Key findings include: All the California community colleges viticulture/enology programs prepare students for direct employment in the field. -- All seven prepare students for assistant vineyard manage/vineyard manager. -- The majority (57% - 85%) prepare students for tasting room associate, assistant winemaker/winemaker, laborary wine technician, sales representative and cellar worker. -- One program prepares students for event manager. -- None the programs train students in logistics coordination. Five the seven community colleges with viticulture/enology programs also prepare students for transfer a four-year university. Four programs articulate with four-year universities. Five colleges fer course(s) only that are not part a viticulture and/or enology specific certificate or degree program. Three these colleges fer courses that are part a different degree or certificate program (such as Agriculture Business or Plant Science), while the other two are stand-alone courses. Four additional colleges are currently developing or considering the development a viticulture and/or enology certificate or degree program, including Butte College, Cuyamaca College, Folsom Lake College- El Dorado Center, and Woodland College. Exhibit 24: Community College and University Programs 20 College Program Name Certificate / Degree 3-Year Average Degrees/Certificates Conferred Allan Hancock College Enology/Viticulture; Viticulture; and Wine AA, AS & Certificate 6 Marketing & Sales Las Positas College Enology and Viticulture AS & Certificate 1 Mendocino College* Viticulture Skills Certificate 0 Cal Polytechnic State University-San Luis Wine and Viticulture BS 54 Obispo California State University-Fresno Viticulture BS 3 MiraCosta College Wine & Viticulture Technology Certificate 4 Napa Valley College Viticulture; Wine Marketing & Sales; and AS & Certificate 23 Winemaking Santa Rosa Jr. College Viticulture; Enology; Wine Business & AS & Certificate 29 Marketing; and Wine Evaluation & Service Shasta College** Winemaking and Marketing Certificate 1 University California-Davis Viticulture and Enology BS; MS 43 * Mendocino College s viticulture skills certificate program was launched in Consequently, they have not conferred any certificates yet. ** Shasta College is in the process deactivating the certificate and fering courses as a stand-alone option. 20 CCCCO Data Mart. NCES, IPEDS data. COE College Survey, Year Average includes academic years , and ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 17

18 COLLEGE RESPONSE AND ISSUES Exhibit 25: Community College Program Details 21 College Allan Hancock College Las Positas College Mendocino College MiraCosta College Napa Valley College Santa Rosa Jr. College Prepares students for transfer a four year university Prepares students for direct employment in the field Prepares students for the following jobs Yes Yes Laborary Wine Technician; Assistant Winemaker/ Winemaker; Assistant Vineyard Manager/Vineyard Manager; Sales Representative; Tasting Room Associate Yes Yes Laborary Wine Technician; Assistant Winemaker/ Winemaker; Cellar Worker; Assistant Vineyard Manager/ Vineyard Manager; Tasting Room Associate; Event Manager No Yes Assistant Vineyard Manager/ Vineyard Manager; Sales Representative Yes Yes Laborary Wine Technician; Assistant Winemaker/ Winemaker; Cellar Worker; Assistant Vineyard Manager/ Vineyard Manager; Sales Representative; Tasting Room Associate Yes Yes Laborary Wine Technician; Cellar Worker; Assistant Vineyard Manager/Vineyard Manager; Tasting Room Associate Yes Yes Laborary Wine Technician; Assistant Winemaker/ Winemaker; Cellar Worker; Assistant Vineyard Manager/ Vineyard Manager; Tasting Room Associate Shasta College No Yes Assistant Winemaker/Winemaker; Assistant Vineyard Manager/Vineyard Manager; Sales Representative; Tasting Room Associate Established articulation agreements Cal Poly, San Luis Obispo; UC Davis UC Davis; UC Fresno None None None UC Davis; Fresno State University; Cal Poly, San Luis Obispo; Cal Poly Pomona UC Davis BUSINESS PARTNERSHIPS California wineries and vineyards expressed interest in partnering with community colleges. As shown below, two out three respondents indicated that they would provide work experience or internship opportunities students, over half would recruit graduates from a local viticulture/enology program and over one-third would provide technical expertise for curriculum development. Exhibit 26: Interest in Partnering with California Community Colleges (n=420) 22 Recruiting graduates from viticulture/ enology programs Providing technical expertise for curriculum development Providing work experience or internship opportunities students 161, 38% 223, 53% 283, 67% COE College Survey, COE Wine Workforce Survey, ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS

19 TRAINING GAP ASSESSMENT The training gap assessment compares the anticipated supply newly trained workers and the projected number job openings for technical positions within the next 12 months and three years out. Due several untracked variables, the difference between supply and demand does not reflect an exact shortage or oversupply. These variables include, but are not limited, varied education requirements, worker migration trends, employer preferences, worker preparedness, and graduate/completion duplication. 23 Though there are limitations supply and demand analysis, it does provide a starting point assess training challenges. Over the next three years, California s wine and vineyard industry will need as many as 785 laborary technicians, assistant vineyard managers, vineyard managers, assistant winemakers, and winemakers. 24 Education institutions confer an average 164 certificates and degrees in viticulture and enology each year, and at the same level, project graduate approximately 492 with a degree or certificate over the next three years. This suggests that there could be a shortage qualified applicants entering the field over the next 12 months approximately 50 trained workers and over the next three years almost 300 workers. Graduates from other programs, such as plant science, agriculture and chemistry, will likely reduce the training gap, as employers indicated a willingness hire applicants with a range educational backgrounds. Exhibit 27: Training Gap Assessment, Wine and Vineyard Occupations 12-Month Estimate 215 Job Openings 164 Completers 51 Gap 3-Year Estimate 785 Job Openings 492 Completers 293 Gap 23 The training gap assessment does not take in account skill builders: students that take one or more courses in CTE but do not obtain a degree or certificate in the field. Skill builders may obtain employment in their field study, thereby creating a larger supply then estimated by completers only. In addition, completer duplication occurs when a student is awarded both a certificate and a degree in the same program and/or transfers complete a 4-year degree in the same field. 24 Demand for cellar workers was not included in the training gap assessment because the minimum education requirement is a high school diploma or less. ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS 19

20 CONCLUSION AND RECOMMENDATIONS California s wine industry employs nearly 41,000 workers throughout the state with significant concentrations employment in the North Bay, North Valley and South Central Coast. While most industries experienced declines during the recent recession, California s wine industry performed well with reported increases in harvests and yields, sales volume, and export revenue. Economists predict that the wine industry will continue grow in the coming year due economic facrs, pricing opportunities and record yields. To better assess the workforce needs the wine industry, the Centers Excellence conducted a survey 420 vineyards and wineries across the state. Eight occupations were selected for inclusion in the survey including four technical positions - laborary technician, cellar worker, winemaker/assistant winemaker, assistant vineyard manager/vineyard manager and four non-technical positions - sales representative, logistics coordinar, tasting room associate, and event manager. California s wine industry employs approximately 7,700 technical positions. Over the next three years, this industry is projected add over 1,050 technical jobs and replace 270 positions. Due a limited sample size, employment estimates and projections were not calculated for the non-technical positions. Most wine and vineyard employers require postsecondary education for both the technical and non-technical occupations, except for cellar workers. The preferred educational background for assistant winemakers/winemakers and laborary wine technicians is enology, while the preferred background for assistant vineyard managers/vineyard manager is viticulture. Employers that require sales representatives, logistics coordinars, and event managers have an associate degree or higher reported no preference for the type degree. More than one year work experience is typically required for all the positions except cellar worker and tasting room associate. For assistant vineyard manager/vineyard manager and assistant winemaker/winemaker a minimum three or more years related work experience is typically required. Small, owner-operated wineries and vineyards that do not employ the eight occupations selected for the study were asked a separate set questions. Two out three these establishments plan grow sales over the next three years. While the majority small owner-operated wineries reported no difficulty finding qualified applicants, 70 percent indicated that they would be somewhat very likely hire graduates if a community college developed a program in their region. In California, there are seven community colleges and three public universities that fer viticulture and/or enology programs, conferring about 165 certificates and degrees annually. California community college programs prepare students for direct employment in the field as well as transfer 4-year universities. Four additional community colleges are considering the development a viticulture and/or enology certificate or degree program. Based on the projected demand and hisric supply newly trained workers, California s wine and vineyard industry may experience a shortage nearly 300 qualified applicants entering the field over the next three years. For the technical positions, about two-thirds the employers reported the greatest difficulty finding qualified assistant vineyard managers/ vineyard managers and event managers, and half reported difficulty finding qualified laborary technicians and assistant winemakers/winemakers. The Center Excellence recommends the following action steps respond the wine and vineyard secr s growing workforce needs: Align curriculum technical positions (except cellar workers). Non-technical positions do not require extensive training in viticulture and/or enology. Incorporate skills and abilities with 50% or higher must have rankings by employers in courses and programs ensure that students are prepared for the viticulture and enology field in alignment with employers skill requirements. Consider development courses and low-unit certificates for event managers. 60% employers expressed difficulty in finding qualified candidates for this position, but currently only one college in the state prepares students for this occupation. Market existing programs career counselors and students promote viticulture/enology as a viable career option. Articulate community college programs with enology and viticulture university programs as a bachelor s degree is the typical education requirement for the technical positions. Add an internship component the curriculum provide students with hands-on experience that will better prepare them for entry-level employment. 20 ENVIRONMENTAL SCAN: WINE/VITICULTURE OCCUPATIONS