Silicon Valley Bank - State Of Wine Industry 2013 | Wine Report
Keys: Survey responses from wineries; Forecasts by Silicon Valley Bank.
- Record yields, great quality, stagnant economy (forecast by Silicon Valley Bank): 1) ↑11-15% in 2011; 2) ↑7-11% in 2012; 3) ↑4-8% growth in fine wine sales in 2013.
- Bottle prices to rise slightly in 2013 (for $20-29 per bottle range) (survey response from wineries): 1) ↓35% reduce; 2) 23% maintain; 3) ↑40% small increase.
- Best West Coast grape harvest ever (forecast by Silicon Valley Bank): 2012. The perfect harvest - 4m. tons.
- Balanced inventory (survey response from wineries): 55% of wineries are in balance.
- Optimistic despite increasing economic & pricing pressures (forecast by Silicon Valley Bank): 1) 40% expect to pay same or more for grapes this year; 2) 40m. cases of bulk wine imported to the US in 2012; 3) 1% wineries
profitability increased slightly in 2012; 4) 100% depend on consumers drinking their wine.
- Continued, slow improvement in winery financial health (forecast by Silicon Valley Bank): 1) Strong: 2012 (↑61%); 2012 (↑64%); 2) Good: 2012 (↓21%); 2012 (↓20%); 3) Weak: 2012 (↓7%); 2013 (↓2%).
- Modernizing (survey response from wineries): 58% - social media is "useful" to "extremely beneficial".
- Consumption rising (survey response from wineries): 3 gallons per capita per adult in US.
Source: Wine Institute.
- Boomers buying (survey response from wineries): 74% of average sales to gen xers & baby boomers in all price categories (age 35-64).
- Direct consumer (survey response from wineries): 27% wineries say DTC is their largest opportunity in 2013.
Read the full report at www.svb.com/wine-report/#SVBWine | Twitter - #SVBWine.
Fine Wine = $20 + retail per bottle.
* Data based on responses to Silicon Valley bank's Wine conditions survey from 450 West Coast wineries in November 2012.