Subject: Wine Industry Financial Health Looking Good: Silicon Valley Bank - NEWS FETCH News Alert - December 10, 2014
Date: 2014-12-10 18:23:24
To: Emailing List Subscriber
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2014 Has been a very good year for the vast majority of wineries, according to Silicon Valley Bank's 2014 industry survey.
News Alert - December 10, 2014
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Wine Industry Financial Health Looking Good: Silicon Valley Bank
The entire report can be accessed by clicking on this link. According to the report summary:
- 82% of wineries reported overall financial health of "good" or better for 2014. This is up 7% over the previous year. This trend is expected to continue as the grapes from three strong harvests (2012,2013, and 2014) make their way into the market.
- Consensus view of 2014 shows 79% of respondents reporting having a good year or better. The Sierra Foothills, CA region reported the largest proportion of disappointment which correlates directly to issues felt during the California drought. Over 41% of respondents from that region reported feeling some issues from the drought.
- 60% of all wineries are projecting price increases per retail bottle with only 6% projecting a decrease in 2015. The majority of increases are expected to be small across all price points except the >$69 range. Wines with a price point >$69 are the most bullish with 45% reporting increases of moderate to strong.
- Wine sales continue to be dominated by the Baby Boomer generation contributing to 44% of all sales with Gen-X’ers coming in at 29%. Three year trends indicate little change amongst the generational buyers in the market today.
- Overall, 93% of wineries reported the quality of grapes harvested as good/excellent for 2014. Wineries in the Pacific Northwest further benefited from the 2014 harvest with 62% of Washington wineries and 85% of Oregon wineries reporting higher yields than average. The next closest region was Napa, CA with 43% of wineries reporting higher than average yields.
- Only 36% of California wineries reported a measurable affect from the 2014 California drought with the most significant issues being felt in the Central Valley, CA, Central Coast, CA, and Sierra Foothill, CA regions.
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