Silicon Valley Bank, a leading provider of commercial banking services to the wine industry, has released preliminary findings for its annual State of the Wine Industry Report for 2010-11.
Based on in-house expertise and ongoing research among West Coast wineries, the report reiterates the prior prediction that the market will be slow to fully recover, predicts year over year sales declines for calendar year 2009, but also forecasts modest growth at the producer level in 2010.
The growth prediction is tempered by observations of continuing economic softness and demographic shifts that are creating headwinds against a quick return to the business conditions that were considered normal prior to the third quarter of 2008.
“Not all the changes we’re seeing and expecting during an ongoing correction and recovery will be permanent, and it’s not all doom and gloom, but everyone in this business should expect that the future will be quite different than the past decade in fine wine,” said Rob McMillan, founder of Silicon Valley Bank’s Wine Division and author of the report.
And that’s why the wine clubs of Vinesse will continue their long-standing quest to seek out wines that represent not only outstanding quality, but also exceptional value.