899 Adams St. Suite G-2, St. Helena, CA, United States of America, 94574
Feeds
The 2023 SVB Annual State of the Industry Report Will Be Released January 18th
Within the 2022 SVB State of the Wine Industry Survey run last October, we asked how 2022 went and got the following response.
Forty-percent of respondents said that the year was one of their better years or their best year ever. Fully sixty-five percent said it was a good year, and those results are very close to those from 2019 when we asked the same question. The survey is largely representative of the views of premium wineries.
Good News and Bad News
The results from the above survey reflect the view of the smaller premium wineries, and while they had a good year, the same can't be said for the industry as a whole.
2022 will be the second year in a row the wine industry will report negative sales growth by volume. I've been scouring the press this month, looking for an estimate of positive volume growth but haven't found one yet. The estimates I've seen range from negative 3.5% volume decline, to negative 0.6%. This is the first time there is an industry analyst consensus that the wine business has entered a period of negative volume growth. The last time the industry reported a volume decline was 1994, so it is a big deal.
Does that mean the industry is collapsing? Hardly. The wine business has been a part of rituals, family celebrations, religion, and used in social occasions for at least 8,000 years. So it's not going away. In fact the premium side of the wine business is still doing just fine with sales growth on a dollar basis of about 9% through nine months ending September 2022.
But we can't ignore the clear warning signs. The writing on the wall is quite legible and there are major challenges to act upon if we ever want to recover growth in the industry.
I'm particularly proud of the work done on the Annual State of the Industry Report this year. It's a report that started the middle of September 2022 and was completed on December 5th before editing and formatting. The report is one-hundred pages of charts and perspectives.
Within the new report, we discuss a full range of challenges and have an updated view on how the wine industry has progressed in attracting younger consumers to the category. The news regarding younger consumer adoption of wine is a surprise to me and it's part of what will be discussed in the live videocast that will take place Wednesday, January 18th.
Silicon Valley Bank and I invite you to join us on Wednesday, January 18th for the live videocast release of the findings from the new 2023 State of the US Wine Industry Report. Registration for the telecast comes with a replay link for later viewing, download links to the studio presentation deck, and the full report.
About
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.
Contact
Contact List
| 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 |
Location List
| Locations | Address | State | Country | Zip Code |
|---|---|---|---|---|
| Silicon Valley Bank | 899 Adams St. Suite G-2, St. Helena | CA | United States of America | 94574 |
List of Locations
Profile Picture