Silicon Valley Bank Releases Annual Wine Industry Report
Company News | May 6, 2008
The report forecasts the next 12 months to be generally positive for the industry as a whole. However, it predicts that the fine wine segment of the industry is likely to experience a drop in sales growth and profitability compared to a record high in 2007.
"The fine wine industry in particular is dealing with a lot of obstacles - a potential recession, an emerging grape shortage, sluggish restaurant sales, distributor consolidation, foreign competition and higher manufacturing costs to name a few," said Rob McMillan, founder of Silicon Valley Bank's Wine Division and author of the report. "What will separate successful wineries from the rest, more than any other factor, will be their ability to market and sell their wine effectively."
Nearly 500 wineries throughout California, Oregon and Washington participated in Silicon Valley Bank's annual wine survey in March 2008, which informs much of the report and forecast. Data from Silicon Valley Bank's Peer Group Analysis program, which contains information from more than 100 premium wineries over several years, is also used.
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. SVB has the largest team of commercial bankers dedicated to the wine industry of any bank nationwide. Founded in 1994, Silicon Valley Bank's Wine Division has offices in Napa and Sonoma counties and serves clients in Napa, Sonoma, the Central Coast 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), with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. 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 Private Client Services is a division of Silicon Valley Bank. SVB Financial Group is also a member of the Federal Reserve.
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