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This study estimates the economic impacts of the Texas wine and wine grape industry on the Texas economy by marketing channel. Survey data from the state's vineyards and wineries for 1996 is used to construct an input‐output model of the Texas economy and an industry impact framework using IMPLAN. Results show that the total core economic impacts of the Texas wine and wine grape industry were $85.8 million in output impacts, 1,157 jobs, $29.6 million in income impacts, and $46.6 million in total value added impacts in 1996. Much of these core economic impacts were attributable to the retail and restaurant marketing channels.

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