Wine Improvement Districts (WIDs) are a stable funding source for organizations of wineries working to improve business activity through an increase in marketing and promotional efforts. Owners within the district work together to market and promote their wine destination and attract new visitors to the wineries.

Wine Improvement Districts are funded through an assessment placed on the wineries within the district, which is typically based on a percentage of direct-to-consumer sales. The assessment methodology is determined and approved by the winery owners during the formation process, within particular legal guidelines, and is typically passed onto the customer.

Wine Improvement Districts provide stable funding for winery owners to ensure their area is well marketed to potential visitors. As competition between wine destinations increase, creating a stable funding source to provide an increased level of marketing to promote the wine region has become increasingly vital.

The assessment is voted on by the wineries within the proposed district, whereas taxes are not. Because these assessments are self-imposed, funds are allocated for programs approved by those businesses paying the assessment to be used for their benefit. Unlike a tax, the government may not divert the assessment funds.

Wine Improvement Districts were established under California’s Property and Business Improvement District Law in 1994.  The law requires a thorough approval process beginning with the submission of a petition from winery businesses that will be assessed in the district.  Districts are initially created to exist for up to five years.  Similar to marketing boards and commissions, a WID can be renewed for up to ten years by re-engaging the petition and hearing process.

Yes, Wine Improvment Districts are growing in popularity and there are Wine Districts throughout California including in Temecula Valley, Santa Barbara, Livermore Valley and Amador County.  In addition, other wine regions in California and across the country are in the process of creating or exploring the creation of a Wine Improvement District.

Our industry is facing challenges like never before. We must reverse the decline and grow the overall wine category now.  To do this, we will want to make our wine more accessible,  find new wine fans to increase visitation to Sonoma County, and drive sales at the assessed winery businesses.  Through the Wine Improvement District, we will be able to secure a significant, stable supply of funding needed to promote Sonoma County throughout the country and around the world.

The Sonoma County Winegrowers is a Winegrape Commission. Growers in Crush District 3 vote every five years on a referendum to continue the Commission and voluntarily assess their grape sale revenues to support the marketing and promotion of Sonoma County on their behalf. A Wine Improvement District will be an assessment through the wineries and the assessment collected will be used for the benefit of marketing and promoting the assessed wineries and will complement the activations and efforts of Sonoma County Winegrowers.