On tap: More profit from wine
Raising a glass to American-made wines
• 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.