'Plenty of buyers' to purchase or recapitalize 'remaining wounded winery players' in the next 18 months
[caption id="attachment_33230" align="alignleft" width="313" caption="Rob McMillan"][/caption]
The fine wine segment of the industry is at the beginning of a "long-term, steady growth phase," with sales of such wines forecast to grow 11 percent to 15 percent from last year and wineries enjoying "marginally improving profitability," according to a report released this morning by Silicon Valley Bank.
Download the reportSilicon Valley Bank 2011--12 State of the Wine Industry (PDF)
"After several years of doom and gloom in this business, it feels good to be past the bottom of the cycle and headed up again," said Rob McMillan, founder of the bank's Wine Division and author an annual report and forecast on the industry. "While we aren't expecting the business to return to the halcyon days before the financial collapse anytime soon, we are predicting a slow and steady climb up that should span several years leading to improved prospects for the wine business."
YearSales growth201010.8%2009-3.8%20082.0%200722.3%200621.2%200519.4%200425.5%200317.6%20025.2%Source: Silicon Valley Bank research
Last year, overall sales for U.S. upscale wineries grew 10.8 percent, according to the bank's research. That's much better than the previous two years and returns sales growth to where they were in 2002--2003.