San Diego County is home to 166 active and planned wineries that contributed a whopping $54.5 million in gross sales in 2023, according to the San Diego County Vintners Association (SDCVA)’s 2024 economic impact report. In the last seven years, that figure has nearly doubled (up from $30.4 million in 2016) and 50 new wineries have since opened their doors.

In addition to sales, these winemakers also recently added more than 800 jobs to our region in 2023.

Along with revenue, locally produced events like Nat Diego and the San Diego Food + Wine Festival help give the region an economic boost.

Michelle Metter, co-founder and producer of the San Diego Food + Wine Festival, shared that their festival is a recipient of marketing dollars from the San Diego Tourism Marketing District to generate hotel stays for the city. “This past year, when we looked at the ROI (return on investment) reporting that was given to the Tourism Marketing District, we produced 9,911 room nights with the room night revenue [going] back into the city—just over $2.5 million,” Metter said.

These events can be an additional financial boost to the region as tourists spend money at local restaurants and hotels—but these festivals are also an opportunity to showcase the biodiverse wine region of San Diego County.

“We don’t host Nat Diego to make money. We do it to gather and nurture our community. And of course, to party. Not only do we get to meet the producers, but they all get to meet each other,” said Tami Wong of Nat Diego.

The San Diego Tourism Authority found that about 6.5% of tourists who came to San Diego visited a winery or did a wine tasting, according to a 2024 visitor profile. And, while the number may seem low, the Wine Institute and the California Association of Winegrape Growers estimate around $900 million is generated in annual tourism spending, based on their 2022 Economic Impact of California Wine report.

Marc Hashagen says their Blue Door Winery location in Julian sees almost all tourist clientele, while their San Diego location is mostly all local, especially wine club members. As more visitors come in, he’s hoping to market the region as a wine location in the process, one customer at a time.

“A decade ago, when you thought of San Diego wine country, you thought of Temecula,” Hashagen said. “I definitely am all for pushing exposure for winemakers and wineries in San Diego, especially since this is where California winemaking first started. We will do barrel tastings to showcase our wines at events, and every time the focus is on the wine,” he shared.

One of the pain points of many local winemakers is marketing the area as an award-winning, high-quality wine region, not only to tourists but locals too. Instead of sending visitors to neighboring wine regions like Temecula or Valle de Guadalupe, the goal would be to keep revenue and tax dollars in San Diego.

“As we meet on a monthly basis and we discuss the things going on, our thrust is to get San Diegans to drink San Diego wine. If we were able to do that … it would cure a lot of ills,” said Mike Weber, president of the San Diego County Vintners Association (SDCVA).

With a decade of winemaking in Escondido’s backyard, Domaine Artefact Vineyard and Winery’s co-owner, Lynn LaChapelle, is proud to see her winery receiving more awards in the wine world last year. Such recognition ultimately helps spread the word that San Diego is home to high-quality wines.

“We still have customers coming to our winery who have not been made aware that San Diego has a wine-growing region,” said LaChapelle. “That is something that I hope to highlight—that we have a lot of local wineries and wine growers who have put their heart and soul and passion into these projects, and that it’s important to support local producers,” she added.

Some other economic challenges for winemakers, like for every consumer, have been higher prices on just about everything. For Marc Hashagen of Blue Door Winery, one of the biggest costs has been diesel.

Blue Door Winery produces about 1,700 cases of wine each year using grapes from vineyards in Ramona, Escondido, Fallbrook, and Santa Barbara. But, due to the high cost of diesel, their team decided to stick to using only local grapes this past harvest.

“A trip to Santa Barbara with a Penske rental [truck] and the diesel was $1,000. That does not include the grapes, hotel, breakfast, and dinner,” said Hashagen. To put that in perspective, a year ago it was $150 cheaper to make that trek north. And, back in 2010, it only cost him $300–400.

Hashagan isn’t alone. More than 60% of winemakers shared with the SDCVA that they have seen higher prices for goods and services in their business since the pandemic in March 2020, especially with the price of glass bottles. Hashagen says he’s cut costs where he can, but ultimately he has had to raise some of his prices to keep up. “We try to be price-conscious so we are not out of people’s budgets.”

Another expensive pain point for winemakers has been insurance coverage. The recent SDCVA economic report found that nearly 60% of winemakers had seen an increase in their insurance rates in the past year, with nearly a quarter of them losing coverage altogether.

“We were canceled by our insurance in 2023. You have to go to the California FAIR Plan, which is the insurer of last resort,” said LaChapelle. Instead of having one insurance policy that covers everything, LaChapelle says she now has five policies, independent of one another, to cover all her insurance needs. Edward Embly, co-owner of Hungry Hawk Vineyards, says the cost of their insurance in 2024 went up by 50%, and in 2025, it looks like it will be 10–15% more.

With steep costs, and now tariffs on many items like aluminum, these changes are proving the importance of sourcing locally. “We source all our produce and honey, everything we [use to] make our cider and mead, from San Diego County. On top of that, we source our labels and artwork from local label makers and artisans. Of course, nobody is making local bottles and cans—we try to buy them within the state so it minimizes shipping costs and the distance it has to travel,” said Dave Carr, owner, cider maker, and orchardist at Raging Cider & Mead Co. Carr founded his company on the principle of sourcing everything hyperlocal—long before tariffs were a headline.

“Every money spent at a local business ends up being put back into the local economy. The more money you spend here, and the more you spend at local wineries and cideries, the more you’re going to help the local economy. And in the end, the money comes back to you as well,” he added.

The bottom line: Each time locals support locals, that support has a domino effect. For winemakers, that means supporting everyone who has a hand in making their wine, from the winery owner all the way down to the farmers growing the wine grapes. The next time you’re reaching for a bottle, consider that your choice doesn’t just affect the flavor of your evening—it shapes the economic future of San Diego County’s growing wine region.