- The general financial condition of the wine industry continues to improve at a slow and steady pace.
- 2012 produced the rarest of events: large yields coincident with outstanding quality across all Western US growing regions.
- Sales growth in fine wine is predicted to be in the range of 4-8 percent in 2013, which is a lower rate of growth than in the previous three years.
- Wine businesses expect to increase bottle prices slightly; however, SVB believes that will prove difficult in 2013.
- Winery gross and net profit will be negatively impacted in 2013 due to higher grape costs.
- Inventory is balanced; yet grape planting will be restrained compared to the same point in prior cycles.
- The purchase volume of wine grapes and grape pricing will largely be flat compared to 2012.
- Mergers and acquisitions of vineyards and wineries will continue at a record pace in 2013.
- Massive bulk imports will continue to dominate the lowest price point wine categories.
- Planting in grape growing regions is and will continue to be more restrained versus prior cycles.
- Direct-to-consumer sales will continue as the largest growth channel for most wineries.
Silicon Valley Bank Forecasts 4-8% Sales Growth In Wine For 2013
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