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Growth of Texas Hill Country wine region drives $20.35 billion statewide industry

by Ivy

In 1975, Susan and Ed Auler established a vineyard on their ranch in Tow, Texas, giving rise to Fall Creek Vineyards. The couple’s passion for winemaking blossomed after a trip to France, where they explored the country’s renowned wine regions just two years prior.

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Years later, while practicing law, Ed Auler submitted a detailed map delineating the boundaries of the Texas Hill Country to the Alcohol and Tobacco Tax and Trade Bureau. His efforts paid off when, in 1991, the federal agency officially recognized the Texas Hill Country as an American Viticultural Area (AVA), establishing its reputation as a legitimate grape-growing region.

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Today, the Texas Hill Country AVA stands as the third-largest in the United States, experiencing significant growth over the past few decades with the emergence of new wineries and vineyards.

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Economic Impact of the Texas Wine Industry

The burgeoning wine region has played a vital role in elevating Texas to the rank of the fifth-largest wine-producing state in the nation, contributing over $20 billion to the state’s economy, according to a 2022 report by WineAmerica.

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This October marks the 25th anniversary of Texas Wine Month, coinciding with the national initiative “Come Over October,” which promotes gatherings among family and friends centered around wine.

Local wineries and industry organizations report that the Hill Country’s wine sector continues to thrive, fueled by a flourishing hospitality industry and a diverse selection of wines, alongside initiatives to boost local wine production.

“We’re a destination for great wines,” Susan Auler stated confidently. “We stand shoulder to shoulder with all the great wine regions of the world.”

By the Numbers

  • Texas Wine Industry
  • Total Economic Impact: $20.35 billion
  • Tourism Visitors: 2.02 million
  • Vineyard Acres: 1,474
  • Wine Producers: 443
  • Texas Hill Country Wine Region
  • Total Area: 9 million acres
  • Yearly Visitors: 1 million
  • Vineyard Acres: Over 1,000
  • Wineries: Over 120

(Sources: WineAmerica/Texas Hill Country Wineries)

Continued Growth

Currently, Texas is home to approximately 500 wineries, as reported by the Texas Department of Agriculture. The number of active winery permits in the state surged by 186% from 2013 to 2023, according to a 2024 report from the Texas Alcoholic Beverage Commission.

Many of these wineries are situated in the Texas Hill Country, which covers roughly 15,000 square miles. Since its inception in 1999, the Texas Hill Country Wineries trade organization has expanded its membership from eight to over 60 wineries.

Visitors flock to Hill Country wineries not only for their wines but also for the unique cultural and natural offerings in the region. Fredericksburg, a historic German settlement, has become a central hub for wine enthusiasts, complemented by a vibrant array of restaurants, live music, and artistic venues, noted Valerie Elkins, co-founder of the Texas Wine Auction.

“Texas is really known for hospitality,” Elkins remarked. “It’s very different to come here than it is to go to maybe other wine regions.”

Beyond the appeal of the experience, the state’s growing wine industry generated approximately 141,235 jobs and $6.91 billion in annual wages for Texans in 2022, according to WineAmerica. Each year, the Texas Wine Auction raises funds to provide mental health services for hospitality workers, helping to ensure sustainable career paths in the industry.

“I think we’re getting a more engaged workforce,” Elkins observed about the Hill Country wine region. “People are beginning to see this not just as a job but as a career.”

The Variety of Texas Wines

Texas’ diverse climate allows for the cultivation of numerous grape varietals, which vary based on the soil and environmental conditions, explained January Wiese, executive director of Texas Hill Country Wineries.

While most Texas wine originates from the High Plains AVA near Lubbock—known for its cooler climate—Hill Country wineries often feature selections from other regions, according to Elkins. However, the number of vineyards in the Hill Country is on the rise, with grape acreage having more than doubled in the last decade.

Though the Central Texas heat can pose challenges, certain grape varietals thrive in this environment. “Tannat is a varietal that is a little more hearty and able to withstand more of the heat and develops really rich, natural flavors,” Elkins explained. “Other types of grapes may not fare as well here.”

Solaro Estate Vineyards & Winery, located in Dripping Springs, has been producing wine since 2009. Owner Robert Fritz, whose family has a winemaking legacy dating back to the 1800s in Italy, emphasized the importance of establishing estate wineries that grow their own grapes. “Solaro is really trying to put the Texas Hill Country AVA on the map as a producer of some of the finest wines in the world,” he stated.

The winery is also adapting to climate change by cultivating drought-resistant vineyards that require minimal water. These vineyards are under observation by universities nationwide, with the potential for replication by other wineries.

Texas Wine Growers is advocating for revisions to the state’s permitting process to support wineries that cultivate their own grapes, according to Elkins, who serves as the executive director of the nonprofit organization. Proposed changes include reduced permitting costs, increased production caps, and additional permissions for these wineries.

Get Involved During Texas Wine Month

Throughout October, numerous opportunities await Texans to participate in Texas Wine Month across the Hill Country. Local wineries will host educational events, food pairings, and live music.

“Texas is a fantastic place to learn about wines and enjoy them for the first time, as wineries are very inviting and provide substantial education,” Wiese noted.

Upcoming events for Texas Wine Month include:

  • Texas Wine Passport: $85 ticket grants access to over 45 wineries throughout the Hill Country from October 1-31.
  • Texas Wine Growers Texas Tasting Event: October 6 in Marble Falls.
  • San Antonio Road Show 2024: October 24.
  • Fredericksburg Food & Wine Festival: October 25-26.
  • Come on Over October Live Music Series: October 5, 12, 19, and 26 at Pedernales Cellars.
  • Austin Food & Wine Festival: November 1-3 at Auditorium Shores.

For more information about these events, visit the Uncork Texas Wines website, managed by the Texas Department of Agriculture.

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