Pennsylvania Invests $2 Million in Wine Industry Growth

Agriculture Secretary Russell Redding
Credit: Commonwealth Media Services

CHADDS FORD, PA — Pennsylvania is directing $2 million into wine marketing and research, including more than $1 million for a statewide promotional campaign, as the state’s fourth-largest-in-the-nation wine industry seeks to expand sales, improve production and strengthen its competitiveness.

Agriculture Secretary Russell Redding detailed the investments Friday, October 23, at Penns Woods Winery in Chester County, where the funding announcement coincided with Pennsylvania Wine Month and followed the release of Gov. Josh Shapiro’s statewide agricultural strategic plan.

The grants support an industry that contributes $1.77 billion annually to Pennsylvania’s economy and sustains 10,756 jobs paying $518.2 million in wages, according to a 2024 economic impact study commissioned by the Pennsylvania Wine Marketing and Research Board.

Pennsylvania has more than 400 licensed wineries across five regions, generating approximately $747 million in annual tourism revenue. The state ranks fourth nationally in wine production, up from fifth in 2018, according to U.S. Treasury Department figures cited by the Agriculture Department.

The largest award, $1,081,534 over two years, will support a comprehensive marketing campaign by the Pennsylvania Winery Association to promote wineries throughout the state.

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The association previously received a $441,180 grant in 2024 to support a five-year marketing strategy. The new funding extends that effort to increase consumer awareness and demand for Pennsylvania-produced wines.

Andrew Yingst, vice president of the Pennsylvania Winery Association, said the investment is important to maintaining a coordinated statewide promotional effort.

“This crucial investment accelerates our transition from a local hidden secret to national recognition, showcasing the diverse wines being grown and produced in Pennsylvania,” Yingst said.

The remaining awards support 11 Penn State University research projects addressing production costs, vineyard management, wine quality and consumer behavior.

The research grants total $827,445, with individual awards ranging from $38,919 to $97,860.

Several projects focus on preventing defects associated with sulfur compounds and oxygen exposure during wine production and storage.

Penn State researchers will investigate alternatives to copper sulfate treatments, develop diagnostic methods for identifying wines at risk of developing sulfur-related odors, and examine naturally occurring yeasts and microbes that could reduce reliance on added sulfites.

Other projects will study oxygen exposure during processing and storage, including methods intended to reduce oxidation, prevent spoilage and improve shelf life.

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A $97,860 award will support research into lower-cost alternatives to traditional barrel aging and oxygenation methods.

Additional funding will examine grapevine nutrient levels, their relationship to crop yields and fruit quality, and production costs for Vinifera, hybrid, and Concord grapes.

A separate $78,973 project will study consumer purchasing behavior and barriers to wine consumption across the Mid-Atlantic region.

The research is intended to provide Pennsylvania growers and winemakers with information that could improve product consistency, reduce expenses, and strengthen vineyard productivity.

The investments come as some Pennsylvania wine producers face losses from an April 2026 freeze that damaged crops.

The state’s 2026-27 budget includes $10 million in Freeze Disaster Assistance Recovery Grants for affected agricultural producers, including grape growers. Distribution of those grants is expected in the coming months.

Redding said the state’s investments in research, marketing, infrastructure and tourism are intended to support the industry’s continued expansion.

“Pennsylvania’s wine industry has grown from transplanted vines in a colonial-era Philadelphia park to the fourth-ranking wine producer in America,” Redding said.

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Penns Woods Winery, which hosted the announcement, is among five nominees for American Winery of the Year in the 2026 Wine Enthusiast Wine Star Awards. The winner is scheduled to be announced in December.

The winery, founded by Gino Razzi and now led by President Carley Razzi and winemaker Davide Creato, is celebrating its 25th anniversary.

Penns Woods also received a $15,000 Farm Vitality Grant in 2024 to support business planning for a proposed expansion.

“Great wine begins with healthy vineyards, and building a sustainable industry requires meaningful investment in the agricultural businesses behind every bottle,” Carley Razzi said.

The wine grants are administered through the Pennsylvania Wine Marketing and Research Board, with annual funding provided through the Pennsylvania Liquor Control Board.

Information about Pennsylvania wineries and Wine Month activities is available at pennsylvaniawine.com.

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