Looking to Purchase a Winery? You're in Luck

Company news  |  May 28, 2014

Study by Silicon Valley Bank's Wine Division Indicates 524* West Coast Wineries are Strongly Considering a Sale Within the Next Five Years

ST. HELENA, Calif. –– May 27, 2014 — Silicon Valley Bank, a leading provider of commercial banking services to the innovation sector and the wine industry, released a new study, "Ownership Transitions in the Wine Industry," today. Based on a survey of 646 West Coast wineries, the report finds that 31% of wineries from California, Oregon and Washington would consider selling under the right circumstances, and of those 10.5% are strongly considering a sale or are hopeful a sale will take place.

The study is a follow-up to a similar report released in 2008 by Silicon Valley Bank and Scion Advisors that predicted 50 percent of West Coast fine wine businesses would transition to new ownership by 2018.

"If you're in the market for a winery as a commercial entity or a family business, there's never been a better time," said Rob McMillan, founder of Silicon Valley Bank's Wine Division and author of the report. "The current pace of ownership transitions in the last - and next - few years is the highest the West Coast wine industry has ever seen. There are plenty of opportunities for strategic buyers to acquire labels and production capacity, and for high net worth individuals to find their own place in the fine wine business."

Key findings from Ownership Transitions in the Wine Industry 2014: 

 • 10.5% of West Coast wineries are likely to sell in the next five years. Extrapolating from these results, 524 West Coast wineries are strongly considering a sale within the next five years*.
• The number of wineries considering a sale is roughly split between commercial wineries and lifestyle properties.
• Wineries in Washington State are more likely to be sold in the near term versus other regions.
• 31% of wineries are open to a sale under the right circumstances. Though that represents a record number of wineries, the percentage has dropped from 51% in a 2008 survey conducted by Silicon Valley Bank, indicating the industry is partially through the predicted transition.

To participate in Silicon Valley Bank's annual Wine Conditions Survey in the future, and receive the full data set and restricted participant analysis, contact the author Rob McMillan at rmcmillan@svb.com or on Twitter @SVBWine.

*524 wineries strongly considering a sale in the next five years is an extrapolation of the 10.5% of survey respondents multiplied by the total number of West Coast Wineries: 4,989. Source: California Wine Institute (3,754), Oregon Wine Board (690), Washington State Wine Commission (545).

About Silicon Valley Bank's Wine Division
Silicon Valley Bank is the premier commercial bank for emerging, growth and mature companies in the technology, life science, private equity and premium wine industries. Its Wine Division specializes in commercial banking for premium wineries and vineyards and the industries that support them. Founded in 1994, SVB's Wine Division has offices in Napa and Sonoma counties and serves clients in the fine wine producing regions of California, Oregon and Washington. By virtue of its dedication to the wine industry, Silicon Valley Bank is able to support its clients consistently through economic and growth cycles, and offer guidance on many aspects of their business, beyond traditional banking services. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB). More information on the company can be found at www.svb.com. 

Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve. SVB Financial Group is also a member of the Federal Reserve. 

Carrie Merritt    
SVB Financial Group