Speaker says area needs to expand wine theme amenities

YAKIMA -- Development of more wine country tourism amenities will not only move the state's wine industry to the next level but provide a major boost for the Yakima Valley economy, said the leader of the state's oldest and largest wine company.

Ted Baseler, CEO and president of Ste. Michelle Wine Estates, described the Yakima Valley as the "tenderloin" of the state's $4.7 billion wine industry, noting that the company's beginnings date back to 1934, when it opened its first winery in Grandview.

Ste. Michelle Wine Estates operates several wineries in the area, including Snoqualmie Vineyards in Prosser and Columbia Crest in Paterson.

Baseler encouraged Yakima Valley business and community officials to develop more spas, golf resorts and restaurants that are geared around the industry, Baseler said during his speech, which attracted about 200 people to the annual meeting of New Vision-Yakima County Development Association, the county's economic development arm.

Such offerings are especially essential in the Yakima Valley, with its proximity to the Seattle area, he said.

"Even though people are going to wine country, (visitors) want other amenities," Baseler said after his speech Wednesday afternoon.

During the meeting, New Vision CEO and president Dave McFadden acknowledged the struggling economy has provided challenges for business development, but he also highlighted the organization's successes for the year that included:

* The development of two new Web sites, www.liveyakimavalley.com and www.workyakimavalley.com, to help new and existing businesses looking to build and retain a professional and technical workforce.

* The Yakima Valley Entrepreneurship Network had 19 workshops attended by 150 entrepreneurs.

* The completion of a fundraising campaign that generated $1.85 million from private and public donations, enough to fund New Vision's operations through 2012.

The Yakima Valley also avoided dramatic increases in unemployment or a large drop in home values, which has plagued other communities nationwide.

"Let's remember that we're relatively fortunate," McFadden said.

Baseler continued on that theme in his speech.

The wine industry has faced challenges during the economic recession, he said. Consumers are opting to trade down to lower-priced wines, the number of wine distributors have dropped with consolidation, and restaurants, key customers of the wine industry, have seen a drop in customer traffic.

Despite those challenges, the wine industry in Washington has fared better than other regions, Baseler said. A greater availability of value-priced wine has helped the state see growth in 2009.

And the selection of the Columbia Crest 2005 Reserve Cabernet Sauvignon as Wine Spectator's "No. 1 Wine in the World" for 2009 did not only bring recognition to Chateau Ste. Michelle Wine Estates, but the entire Washington wine industry, Baseler said.

That Columbia Crest vintage was the first wine from Washington state to receive the honor.

"The Washington wine industry, even in these economic times, is healthy," Baseler said. "It will become even more healthy."

* Mai Hoang can be reached at 509-577-7685 or mhoang@yakimaherald.com.