How Much Did Wineries Really Make in 2016?

Oct 3, 2017

(SVBWine) - Unlike most of the business world, there's a sense in the wine business that your neighbor is part of your support mechanism. They are not a rival nor are they a competitor. Everyone freely offers support in the form of information and time. If you need a tractor because yours is mired in a soggy field, no problemo! Need a little welding and custom fabrication on a pump? I'll be right over with a welding rig. Stuck fermentation? I'll send over a portable heating unit.

That kind of sharing happens all the time. But ask your neighbor for a customer list, or ask "Can you show me a copy of your financial performance so I can compare my winery to yours?" The answer is always just < ..... crickets ..... >. 

When it comes to that question you'll just get a mixture of liars dice, false bravado, partial truths and ..... well ..... the following video I put together is the best explanation of how that game is played with your neighbors in wine country.......

In the 2017 SVB State of the Industry Report released in January of this year, we said there was blood in the water, using the Jaws theme to paint the picture. The sharks; those large production level wineries and companies who often set the market tone, are moving on up the price chain as premiumization continues. Consumers are permanently vacating lower price segments in favor of higher quality and higher priced wine. That change impacts every decision you make today.


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