Silicon Valley Bank Wine Industry Report 2013January 14, 2013 Posted by: Rob McMillan
It's another good-news, bad-news year in fine wine for 2013. With the release of our annual , we found that wineries are feeling good about their businesses and even expect to raise bottle prices slightly this year. While we are quite optimistic about the future prospects in the US wine business, a combination of events will continue to hold back robust growth in 2013, and we think raising bottle prices, for example, is going to be tough.
This year's report is based on our own predictions and forecasts after nearly 20 years banking the wine industry. We are also extremely thankful for the 450 wineries who completed our survey in November. All told, there are a number of really interesting, and some surprising, findings:
The general financial condition of the wine industry is improving at a slow and steady pace.2012 produced the rarest of events: large yields coincident with outstanding quality across all Western US growing regions. Wine businesses expect to increase bottle prices in 2013, although SVB believes that will prove difficult.Winery gross and net profit will be negatively impacted in 2013 due to higher grape costs.Inventory is balanced; yet grape planting...Read More