899 Adams St. Suite G-2, St. Helena, CA, United States of America, 94574
The Annual SVB Direct to Consumer Survey continues to be open through March 24th, and I need your help with contributing your own data. Only participants will get a success guide... And now you're asking, 'What is a success guide?'
What most wineries want today are answers. What should wineries do to get through this period?
In this year's survey, we are collecting the solutions wineries are using to counter the headwinds. When finished, we will collate those thoughts into a file, and give those anonymized solutions only to participants. That's a success guide.
Think of the success guide as a checklist or a muse. If you are searching for answers, you might get help from hearing what others are trying.
What information will respondents get back in the guide? A very short topical list will include strategies that might fall into categories like:
Enhancing Wine Quality and Experience
Operational changes
Cost management
Supplier contracts
Inventory management
Marketing and engagement
Expansion and Distribution
Customer retention
Access to Capital
Navigating challenges
Respondents also will receive the full set of slides from which you can benchmark your operations. Neither of these two files will be released to the public.
Here are the [survey questions], and here is the [link to the survey]
In this challenging business environment, solutions are in short supply but critically valuable. Good news! The annual SVB Wine direct-to-consumer survey offers a pathway to insights and is currently open for your participation!
This is the grandaddy of DTC surveys, taken by thousands of wineries over the decades.
This year, a compilation of crowdsourced ideas will be crafted into a guide, exclusively available to those who take 15 to 20 minutes of time. Moreover, participants of the survey will receive an exclusive detailed slide deck comprising dozens of slides reserved only for respondents. Ready to go?
It's time to break the mold and reevaluate everything we think - DTC, grape contracts, the tasting room model, micro collaborations with neighbors, the effectiveness of our social media campaigns, wholesale distribution, our efficiencies, how we use data, our messaging, where we market, how we define 'an experience' ...
A blog about the US Wine Business
How Long Will This Last?
Now it feels like it's 2025. The new year's cobwebs are clearing, and the events are starting, including the release of the Annual SVB State of the Industry Report, the DTC Wine Symposium, and next week, the Unified Wine Symposium will be in full force.
The main goal of presenting the SVB State of the Industry Report is to provide a forward view and be as transparent as possible. I understand that many in this industry don't like to hear 'doom and gloom.' Who does? But that is exactly the comment I received several times over in the 2019 report when I said:
With a good 2018 in the books, it would be easy for winery owners to just keep doing what they do now, hoping the multitude of challenges creating the current retail sluggishness will be solved. This would include consumers finding more discretionary income, labor and migration issues becoming disentangled, and the emergence of digital platforms and strategies to unravel the many problems and opportunities in the DTC sales channel.
Hope is always good, but hope is never a good strategy. Despite the positive year in 2018 and 25 years of great growth for the US wine business, I believe sales growth forecasts for the next five years should be tempered. The fundamental underpinnings that created the industry growth are changing, which means the tactics that were relied upon to ride this wave of success to this point will slowly prove flawed without business adaptation. To continue its growth in the years ahead, the US wine industry needs new direction and a changed focus.
The 2019 report was also the first in which I spent a chapter discussing the neo-prohibitionist threat. In any case, the industry finally understands what I was warning about on both counts. So, will this report be hard to hear?
I don't need to spend much time rehashing what the industry knows. Of course, the data are a foundation that must be offered, but in this report, I don't spend much time discussing neo-prohibitionism or dwelling on the obvious: We are in a correction. In this report, like the other SVB reports, I look forward to what comes next and will answer the question, "How long will this last?"
Knowing how long this phase will last is a core consideration for industry plans for the next five years. This is a report I believe you will appreciate, and it may be helpful in your specific circumstances.
Please sign up above to watch the presentation with a great panel; get the replay link and the link to your own copy of the report!
2025 is here. Let's get after it!
Event Type: Webinar
Event Date: 01/23/2025
Location: Online
With the continuing decline of key metrics, the question most have is, “How long will this current market last?”
We'll tackle that question with a panel of industry experts and present findings from the SVB State of the US Wine Industry survey that can help guide vintners and growers through the current down cycle.
Please join us on Thursday, January 23, for a live, virtual event to review findings from our 2025 State of the US Wine Industry Report.
Our panel of industry leaders will share their thoughts on the surprising drivers of this stubborn downturn and discuss paths that may lead to a healthier, more resilient industry.
This year’s session will include the following topics:
Speakers:
The title of this post reflects the actions the Surgeon General is promoting. It's part of a long-term, well-thought-out, and well-funded campaign against consuming alcohol - any amount of alcohol. The campaign runs circles around anyone wanting to point out the other positive health science behind moderate consumption. But this report shouldn't be a surprise to anyone.
In a September 2019 blog post titled "Get Ready For Cancer Warnings on Wine Labels," I discussed the developing impact of the Cumulative Negative Health Message spread by neo-prohibitionists. Even then, there was a growing push to add enhanced cancer warning labels. By now, you've undoubtedly heard the latest iteration of this skirmish, but if not, let me get you up to speed.
On January 3rd, when many were resetting their circadian clocks back to work time after an extended holiday break, the outgoing Surgeon General released an advisory about alcohol consumption.
The release comes at an interesting time - right before he leaves office and before his parent agency, the HHS, releases a critical scientific paper from their Interagency Coordinating Committee on the Prevention of Underage Drinking (ICCPUD). The forthcoming paper from the ICCPUD, a political event in and of itself, will help inform the committee approving the next edition of the alcohol section of the USDA Health Guidelines.
As an aside, the ICCPUD is a horrible initialism. You were thinking it, and I just said it out loud.
The key findings in the report are that alcohol consumption is the third leading preventable cause of cancer, after tobacco and obesity, and that there is a well-established, direct link between alcohol consumption and cancer risk for at least seven types of cancer, including cancers of the breast, colorectum, esophagus, liver, mouth (oral cavity), throat (pharynx), and voice box (larynx).
The report further concludes that about 100,000 alcohol-related cancer cases and about 20,000 alcohol-related cancer deaths in the US annually are attributable to alcohol consumption, and cancer risk increases as alcohol consumption increases - which is information straight off the WHO website.
The anti-alcohol industry likes to obfuscate the science behind moderate consumption. They roll together those who consume alcohol moderately with those who drink alcohol irresponsibly, and from that angle, the math will say alcohol does cause cancer because the abuse of alcohol does significantly increase your risk. But if you separate the two, there is a long-held scientific view that wine extends average life spans and improves cardiovascular risk. The science regarding cancer risk for moderate consumption is quite different from what the Surgeon General is reporting.
What is the Surgeon General's solution to this issue?
He is calling for enhanced cancer warnings on all alcoholic beverages and a reassessment of the (USDA) guideline limits for alcohol consumption to account for cancer risk, and advising public health professionals and community groups to highlight alcohol consumption as a leading modifiable cancer risk factor and to expand education efforts to increase general awareness of the link between cancer and alcohol.
It's confusing to read that statement against the government report released by the NASM in December. That Government report said:
"The committee concludes that compared with never consuming alcohol, moderate alcohol consumption is associated with lower all-cause mortality (moderate certainty). The committee determined that there was insufficient evidence to establish certainty for an association of moderate alcohol consumption with... cancers of the breast, colorectum, esophagus, liver, mouth (oral cavity), throat (pharynx), and voice box (larynx)."
The part of the NASM statement that said moderate consumption is associated with lower all-cause mortality (longer life) is a throwback because that is the uncomfortable reality the anti-alcohol movement has been successfully marketing against since the 1990s, but they still haven't been able to fully erase the message.
Living a longer life was an easy metric for the public to understand in the 1990s, but it was in opposition to the World Health Organization's goals. So, being unable to combat the scientific link between moderate consumption and longer life spans, the goalposts were moved to make cancer the threat, and they changed the measures away from lifespan to a new measure: DALYs (Disability-adjusted life years).
The WHO says that "DALYs are calculated by adding together years of life lost due to premature mortality (YLLs) and years of healthy life lost due to disability (YLDs). One DALY represents the loss of one year of full health." There is a greater opportunity to shape a counterargument if you increase the assumptions needed to arrive at a finding. Reading through the definition, how many assumptions do you need to make to calculate the years of life lost due to premature mortality? Using DALYs, you can conclude that no amount of alcohol is safe.
Advisories from the Surgeon General "are reserved for significant public health challenges that require the nation's immediate awareness and action." Translation: The Surgeon General believes this report is critical to digest and understand now. From this perspective, the Nation is late in understanding and addressing the ills of alcohol consumption. The report's suggestions are only recommendations, and from that perspective, the report is unimportant, as Congress has to agree to and approve the actions.
But most mainstream news organizations have covered the report extensively over the weekend - paying little mind to the other side of the story. You can fully expect that neo-prohibitionists will cite this report as foundational proof that there is no safe amount of alcohol, and that is settled science.
The battle is being played out, and the 'no safe amount' mantra is being recited repeatedly. If you say anything enough and nobody contradicts you, that message becomes truth. The alcoholic beverage industry is late in finding ways to bring out the other science on positive health impact that has been proven sound and contradicts the 'no safe amount' message.
The other impact of this report is that it could presage the tone of the upcoming release of the HHS and ICCPUD paper, which will influence the creation of the USDA Dietary Guidelines on alcohol consumption. We presently have the NASEM findings that moderate alcohol consumption leads to longer life, and in direct opposition to the Surgeon General's view, that they can't confirm the tie between the researched cancer findings and moderate alcohol consumption.
With the two reports likely coming to different conclusions, the committee charged with writing and updating the 2025 USDA Dietary Guideline on alcohol will either have to choose one message over the other or somehow combine conflicting report findings. Stay tuned for late in 2025 when the latest edition of the USDA Dietary Guidelines will be published.
The SVB Annual State of the Wine Industry Survey closes this coming Sunday evening, October 20th.
The great news is there has been a strong response rate this year, and we will close with a statistically significant response size above 500 total responses. The AVAs in seven regions will receive their own comps to compare performance against the other regions.
A special thanks to Paso Robles for their record participation this year. Napa will again cross the 100-participant mark, so once again, thank you, Napa!
I'd still love additional responses from wineries in Oregon, Washington, Lodi/Clarksburg, New York, Santa Cruz/Monterey, and Texas. With another seven to ten responses, each of the last four named regions will have sufficient responses to have their own regional comps too.
Adding your data to this annual industry event will only take about 20 minutes.
Here are the survey questions that you can use to prepare: Link.
Here is the survey itself: Link.
The wine industry is in uncharted territory, but analysts' opinions of its current state vary. If the analyst views were music, they would range from Bob Marley's, 'Every Little Thing's gonna be Alright,' to Led Zeppelin's, 'When the Levee Breaks, I'll Have no Place to Stay.' Who are you going to believe?
While instinct has a place, facts matter, and there are too many supporting facts to think everything is just fine. Finding the good news in the information has become challenging. It's not all bad. Some wineries continue to perform well, even though they are experiencing the same headwinds as your winery. Why is that? How will you respond to the headwinds? Where are there opportunities?
SVB has been dissecting the wine business and offering the industry and regions fact-based guidance for nearly 30 years. The NY Times calls the SVB report "probably the most influential analysis of its kind." What do we owe that to? A lot of consistent hard work and a desire to improve each year, a wide net when gathering information, personal relationships with hundreds of wineries, and a partnership with the industry to drive benchmarks that give subjective and objective conclusions to our opinions. We can only do what we do with the industry's support.
These are the final days to participate in the 2024 State of the Industry Survey. We have a soft close scheduled for Friday the 18th but have decided to leave the survey open for stragglers through the weekend. We currently have 363 responses and are on pace to reach our goal of 500 wineries with cooperation this week.
Adding your data to this annual industry event will only take about 20 minutes.
The SVB Annual State of the Industry Survey is open for two more weeks, and your participation is vital.
A blog about the US Wine Business
For nearly 30 years, Silicon Valley Bank has been dedicated to providing global financial services to some of the most innovative and entrepreneurial companies in the technology, life science, venture capital and premium wine industries. Our experience with these industries affords us a deep understanding of our clients' business models and a high level of comfort with the business cycles inherent to these dynamic markets.
Silicon Valley Bank offers a full range of sophisticated banking and investment services, but what sets us apart from other banks is our innovative approach and deep commitment to helping entrepreneurial companies of all sizes, and at all stages, grow their businesses around the world.
Over the years, we've built an unparalleled network of relationships with companies, service providers and venture capital. Silicon Valley Bank helps clients gain access to the right people and the right resources to achieve their goals.
Wine Division
When formed in 1994 to serve premium wineries and vineyards, Silicon Valley Bank's first wine industry office stood as the only banking office in the United States dedicated exclusively to the premium wine industry. Today Silicon Valley Bank's Wine Division is the leading provider of financial services to wineries and vineyards in the western United States, with over 300 winery and vineyard clients, and growing, in Napa, Sonoma, the Central Coast of California, Oregon and Washington.
Silicon Valley Bank's premium wine specialists are a unique group they are experts in the wine industry and understand that the winemaking business is like few others. They have a thorough appreciation for the rewards that come from winemaking, but also understand the risks and challenges faced by vintners. You'll find that our team of 35 professionals is enthusiastic about helping you turn challenges into opportunities.
Title | Name | Phone | Extension | |
---|---|---|---|---|
Division Relationship Mgr - Founder, Wine Division | Rob McMillan | rmcmillan@svb.com | 707-967-1367 | |
Wine Division Manager | Bill Stevens | wstevens@svb.com | 707-967-1373 |
Locations | Address | State | Country | Zip Code |
---|---|---|---|---|
Silicon Valley Bank | 899 Adams St. Suite G-2, St. Helena | CA | United States of America | 94574 |