COMPANY PROFILE

SILICON VALLEY BANK

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CONTACT INFO

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Address

899 Adams St. Suite G-2
St. Helena
CA, 94574
United States
Phone
(707) 967-1367
Fax
(707) 967-4827
Primary
Rob McMillan

Silicon Valley Bank and the Wine Industry

For nearly 30 years, Silicon Valley Bank has been dedicated to providing global financial services to some of the most innovative and entrepreneurial companies in the technology, life science, venture capital and premium wine industries. Our experience with these industries affords us a deep understanding of our clients' business models and a high level of comfort with the business cycles inherent to these dynamic markets.

Silicon Valley Bank offers a full range of sophisticated banking and investment services, but what sets us apart from other banks is our innovative approach and deep commitment to helping entrepreneurial companies of all sizes, and at all stages, grow their businesses around the world.

Over the years, we've built an unparalleled network of relationships with companies, service providers and venture capital. Silicon Valley Bank helps clients gain access to the right people and the right resources to achieve their goals.

Wine Division

When formed in 1994 to serve premium wineries and vineyards, Silicon Valley Bank's first wine industry office stood as the only banking office in the United States dedicated exclusively to the premium wine industry. Today Silicon Valley Bank's Wine Division is the leading provider of financial services to wineries and vineyards in the western United States, with over 300 winery and vineyard clients, and growing, in Napa, Sonoma, the Central Coast of California, Oregon and Washington.

Silicon Valley Bank's premium wine specialists are a unique group they are experts in the wine industry and understand that the winemaking business is like few others. They have a thorough appreciation for the rewards that come from winemaking, but also understand the risks and challenges faced by vintners. You'll find that our team of 35 professionals is enthusiastic about helping you turn challenges into opportunities.

Silicon Valley Bank - Make Next Happen Now


Winery Solutions

Our goal is to provide winery owners with the custom financial solutions they need so they can stay focused on the business of growing grapes and making wine. Our flexible finance solutions provide for:

  • Inventory and accounts receivable financing
  • General working capital lines of credit
  • Winery acquisition
  • Winery construction and upgrades
  • Vineyard acquisition
  • Short and long term real estate loans
  • Equipment and barrel facilities
  • Buyouts and recapitalizations

In addition, Silicon Valley Bank offers treasury management and foreign exchange products and services to keep your business running smoothly, day after day and vintage after vintage.

 

Vineyard Solutions

Our goal is to provide  vineyardowners with custom financial solutions to help them stay focused on the business of growing and harvesting grapes. Our flexible finance solutions provide for:

  • Vineyard acquisition
  • Vineyard development
  • Re-planting
  • Seasonal crop lines of credit
  • Long-term real estate purchases
  • Equipment loans


In addition, Silicon Valley Bank offers treasury management products and services to keep your business running smoothly, day after day and harvest after harvest.

Download(s):

State of the Wine Industry Report Infographic
State of the Wine Industry Report Infographic
Silicon Valley Bank's annual State of the Wine Industry Report forecasts 4-8% sales growth in wine for 2013. The report identifies trends and addresses current issues facing the U.S. wine industry, offering data and observations that help that wineries can use to develop their business strategies. Silicon Valley Bank's wine report is based on its in-house expertise as one of the largest bankers to the West Coast wine industry for nearly 20 years, a proprietary database of more than a decade of winery financials, ongoing research, and an annual survey of 450 West Coast wineries. The report findings were discussed in a January 15, 2013 video webcast with author Rob McMillan, founder of Silicon Valley Bank's wine division, Paul Mabray of VinTank, Tony Correia of The Correia Company and MJ Dale of KLH Consulting. Read the full report at: www.svb.com/wine-report
Terroirnomics
Terroirnomics
Silicon Valley Bank's deep industry knowledge makes us the banking choice of great wineries and vineyards
Liquid Asset Management
Liquid Asset Management
Silicon Valley Bank's deep industry knowledge makes us the banking choice of great wineries and vineyards
Vinvestment Counseling
Vinvestment Counseling
Silicon Valley Bank's deep industry knowledge makes us the banking choice of great wineries and vineyards
Silicon Valley Bank. For over 15 years, our Wine Division has helped vineyards and wineries from Washington to the central coast of California reach their full potential. At SVB, we'll help you find a way, all the way.
2012-2013 State of the Wine Industry Report Infographic
2012-2013 State of the Wine Industry Report Infographic
The report captures trends and addresses critical issues facing the U.S. wine industry, offering unique data and observations that help wine business owners and managers think critically about their strategies. http://www.svb.com/2012-wine-report/
Silicon Valley Bank. For over 15 years, our Wine Division has helped winemakers and growers achieve their goals with everything from growth capital to winery construction and vineyard acquisition. We understand what you do and have the resources and flexibility you need. At SVB, we'll help you find a way, all the way.
Silicon Valley Bank. For over 15 years, our Wine Division has helped winemakers and growers reach their full potential with everything from flexible financing to growth capital to constructing that dream winery or acquiring that perfect vineyard. At SVB, we'll help you find a way, all the way.
2018 Secrets for Growing DTC Wine Sales
2018 Secrets for Growing DTC Wine Sales
Watch SVB's Direct-to-Consumer (DtC) videocast which goes deeper into the findings from SVB and Wine Business Monthly’s Annual DtC survey. The 2018 panel includes Rob McMillan, EVP & founder of Silicon Valley Bank’s Wine Division; Amy Hoopes, President, Wente Family Estates, Paul Mabray, Wine Industry Digital Futurist and Director, Getemetry.com and Cyril Penn, Editor-in-Chief at Wine Business Monthly.
2018 SVB State of the Wine Industry
2018 SVB State of the Wine Industry
SVB's annual videocast delves into the trends and topics that are shaping the wine industry. The 2018 panel includes Rob McMillan, EVP & founder of Silicon Valley Bank’s Wine Division; : Gretchen Boock, Chief Executive Officer, Dobbes Family Estate / Wine By Joe; Mary Jo Dale, Marketing Director, Americas, Vinventions / Nomacorc; and Paul Mabray, Wine Industry Digital Futurist and Director, Getemetry.com.
2018 SVB State of the Wine Industry Follow-Up
2018 SVB State of the Wine Industry Follow-Up
Watch the follow-up video to SVB's annual videocast which goes deeper into the trends and topics shaping the wine industry. The 2018 panel includes Rob McMillan, EVP & founder of Silicon Valley Bank’s Wine Division; Gretchen Boock, Chief Executive Officer, Dobbes Family Estate / Wine By Joe; Mary Jo Dale, Marketing Director, Americas, Vinventions / Nomacorc; and Paul Mabray, Wine Industry Digital Futurist and Director, Getemetry.com.
Current State of the West Coast Wine Economy
Current State of the West Coast Wine Economy
Gary Vaynerchuk is a master promoter. As of today, he has 854,000 Twitter followers. These are people who WANT to follow him and hear his opinions about wine. Gary and I sat down for a great discussion about what's happening on the business side of fine wine. Discounting, the growth of Argentinean malbec; Will the fine wine business in the US fall off the edge of a cliff? By tracking inventories of the top Northern California wineries, we at Silicon Valley Bank(SVB) have a unique perspective. Enjoy the video conversation between @SVBWine and @GaryVee.

News Archive


Institute of Masters of Wine Announces Silicon Valley Bank as a Supporter
02 November, 2018

October 31, 3018 - The Institute of Master of Wine is pleased to welcome Silicon Valley Bank to its international supporter community.

For over 35 years, Silicon Valley Bank has provided a wide range of banking and financing services to businesses of all sizes in innovation centres around the world. In 1994 SVB’s Wine Division was founded to offer those services and strategic advice to premium vineyards and wineries.

With one of the largest banking teams in the United States dedicated to the wine industry, SVB’s Wine Division has four offices in fine wine regions in the US, serving premium wine clients, primarily on the West Coast.

The IMW has 28 Supporters from around the world, who work jointly with the IMW to promote its mission of excellence, interaction and learning across all sectors of the global wine community. SVB will work closely with the IMW and its students in furthering their understanding of the business of wine, a large component in the Master of Wine exam syllabus. The bank also plans to work with a number of individual Masters of Wine, to enhance the offer the bank makes to its wine industry producers and other clients.

The announcement comes just after a Masters of Wine trip to California, where 47 MWs tasted over 600 wines and met 300 of California’s most esteemed vintners over 10 days. Adrian Garforth MW, Chairman of the IMW met with William Stevens, Head of the Wine Division (both pictured), at Silicon Valley Bank to celebrate and welcome SVB into its supporter community. Adrian said, “We are delighted to welcome Silicon Valley Bank as a Supporter of the IMW. They are the first financial company to join our international supporter community and are doing so at a buoyant time in the IMW’s history. We respect their commitment to the wine industry and their wine research immensely, and look forward to working with them closely over the next few years.”

William Stevens, Head of the Wine Division at Silicon Valley Bank said, “The IMW champions knowledge and excellence in the global wine community, which is why we have chosen to partner with this prestigious organisation. Here at Silicon Valley Bank’s Wine Division, we appreciate the challenges of this great industry, and the rewards it brings. Our association with IMW aligns with our goals to go well beyond banking and act as strategic advisors and brand ambassadors to wine proprietors using our global network.”


Wine Supply Is Hitting a Tipping Point
23 October, 2018

I've been pointing out the slowdown in the growth rate of consumer demand by volume for some time now. We are still growing, but the growth rate is slowing, particularly when looking at volume.

I began to talk about shifting consumer demand and premiumization as early as 2006 in the Annual State of the Industry Report. This is a pretty optimistic industry so I was called a Debbie Downer when I started discussing the forward trends back then. That blow-back has since settled down into general agreement and instead of debating the facts as I've laid them out, the discussion has settled into a discussion of strategy.

 

 

 

At some point as demand in volume flattens while bearing acres increase (above chart), we should expect to see a change in grape buying patterns from wineries and ensuing price changes depending on the specific region and variety

From all the signs I can see, it appears we've arrived at that tipping point in supply. That will change a lot of things going forward. 

 

Reading the Tea Leaves 

In the past month there have been stories of wineries rejecting fruit. Smoke taint is the reason cited which is reasonable when there is taint. But growers are suggesting the real reason for rejection is those wineries have more supply than needed. I don't know which is right but either way, experience tells us that rejection rates drop when there is short supply, so those stories are one small indicator of a possible market change.

 

A better indicator: Last week, both of the major wine brokerages came out with their harvest updates. Both commented on the good quality fruit from most regions and both hinted at a large harvest. For the past several months, both brokers have suggested wineries might be changing their buying patterns, but as is often the case when we are at this point in a cycle, harvest is the final arbiter.

It looks like the verdict is nearly in now and we may end up with a record harvest in California which will further tip the scales.

 

Current Wine Broker Comments:

Within the Ciatti report Robert Selby said:

"Growers will have to decide whether or not to turn overage, unwanted by the buyer, into bulk wine. They should think very carefully about this and not do it unless they can bear the potential risk considering that the bulk wine market continues to be sluggish. The lack of market activity, together with the fact the 2018 crop is looking big, means prices are softening across the board."  

In the Turrentine Report Steve Fredricks said:

"For some time, a number of market variables have been pointing toward a market of excess supply and seem to currently be outweighing the market indicators for a supply shortage. We seem to be on pace for a crop with higher than average yields, which may intensify some of the market dynamics of excess and continue downward pressure on pricing.  

 

 


Save-The-Date: SVB's Annual Wine Conditions Survey
05 October, 2018

Each year, roughly 20 percent of the bonded wineries in the U.S. take part in the Silicon Valley Bank Annual Wine Conditions Survey. The results provide important benchmarks and data, which when coupled with SVB analysis, help winery owners gain insights that will assist with planning for 2019. We hope you will participate.

This year, the survey will be open October 1 through October 19. The survey takes about 12 minutes for most, but to prepare, we’ve included this link to the questions. Watch for an email on October 1 announcing the opening of the survey. Take the survey here.

As a survey participant, we will provide you the full anonymous results, top-level analysis and relevant charts. Please note that the results are distributed only to those who complete the survey.

Please feel free to forward this to other wineries who could benefit from the information. Thank you for your support in helping our dynamic industry learn, evolve and grow.

 

Sincerely,

Rob


Silicon Valley Bank Opens New Napa Office
28 August, 2018


Silicon Valley Bank (SVB), the bank of the world’s most innovative companies and premium wineries, today announced the opening of its new office in downtown Napa. Its third office in the North Bay wine country, the move demonstrates the bank’s dedication to providing excellent service to its clients in wine country.


“We’re excited to open our new Napa office and be part of the vibrant downtown community,” said William Stevens, Wine Division Manager for Silicon Valley Bank. “SVB has helped wineries grow and succeed for over 25 years, and this new office shows our continued commitment to providing unique client service and supporting the growth of great viticulture. We are ready to do more. We aim to further integrate our broader client base with our established relationships across wine country.” 

"Silicon Valley Bank is deeply embedded in the wine community,” said John Trefethen, Founder of Trefethen Estates. “They’ve been an unwavering partner to us at Trefethen, and support their clients through unforeseen challenges - like the Napa earthquake and fires. This new Napa office further underscores their commitment to the wine industry and the community as a whole.”

Silicon Valley Bank’s new Napa office is located at 1300 First Street, Suite 466, with offices, client entertainment areas and an outdoor patio. It is part of First Street Napa, a 350,000 square foot mixed-use development with retail shops, hotels, wine tasting rooms and restaurants.

The bank’s wine division was founded in 1994 and maintains more than 400 clients in the wine industry as one of the largest wine lenders in the country. In addition to the new Napa office, the division has a full-service branch in St. Helena and banking offices in Santa Rosa and Portland, Oregon. In 2017, the bank relocated its Pacific Northwest team to be based in Oregon’s wine country.

In addition to providing a full range of financial services, Silicon Valley Bank offers proprietary benchmarking, wine ambassadorship, insights and research for the wine industry through resources including its State of the Wine Industry 2018 Report and Direct-to-Consumer Wine Sales Report, done in partnership with Wine Business Monthly. More information on Silicon Valley Bank’s wine division is available at svb.com/premium-wine-banking/


Silicon Valley Bank Expands in Portland
06 June, 2018

PORTLAND, Ore., June 4, 2018 - Silicon Valley Bank (SVB), the bank of the world's most innovative companies and their investors, today announced the expansion of its Portland, Oregon team. SVB hired technology executive Jane Ullman as Managing Director to support Oregon's innovation economy and lead its local banking team. SVB also recently added a local wine team to continue serving Oregon's premium wineries.

"Oregon's technology sector is dynamic and growing, its wine is world-class and the Pacific Northwest is a great place to live for our employees," said Bruce Helberg, Senior Market Manager of the West region at Silicon Valley Bank. "Our expansion is a reflection of these trends. We're thrilled to welcome Jane to the Portland team. She brings experience from repeat roles as an SVB client at various tech companies, has raised debt and equity, and understands board room dynamics at VC-backed companies. She truly understands the lives and needs of the founders and CEOs we serve."

Silicon Valley Bank helps address the unique needs of entrepreneurs, innovative companies and their investors in technology and life science sectors, and the company runs a wine practice that works with premium wineries in California, Oregon and Washington. With more than $50 billion in assets and more than 2,500 employees globally, SVB strives to improve the probability of its clients' success. 

Jane Ullman has more than 20 years of experience as a finance and operations executive for high-growth organizations including Rulespace, Shiftwise and The Clymb. She has also actively supported the growth of the Oregon technology community through her consulting business, Grow Partners. Jane earned an MBA at the Stanford Graduate School of Business.

Silicon Valley Bank has been in Oregon since 1992, working with hundreds of local startups such as Lytics and Mirador. Today, SVB's Oregon office is located in Portland's Old Town neighborhood and serves the local technology and wine sectors. 

In an effort to support Oregon and Washington's growing wine sector, Market Manager Nick Wolfe and his team, including Garrett Hoemmen, relocated to Portland from Napa County to focus exclusively on the Pacific Northwest. SVB's wine division has served local wineries, including Ken Wright Cellars and Doubleback Winery, for more than 20 years.

About Silicon Valley Bank 

For 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com.

©2018 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB).


Last Chance: SVB Live DTC Videocast
14 May, 2018

I wanted to title this post with something like, "Jaw Dropping Evidence You Won't Believe!!" Then I was going to send you to another site that would have you click through 75 random pictures. Don't you hate it when you get pulled into one of those links? They never get to the picture you wanted to see. It's a form of internet fraud and torture.

Well I actually do have more than 75 slides we've just finished putting together. They're from the most recent Direct to Consumer survey; hardly a fraud. I think you would really appreciate all of the information, but the total deck of slides are only for original survey participants. There are some slides and information anyone can get though.

Among many interesting metrics and findings, the conclusions on Urban Tasting Rooms were pretty remarkable ... we could even say the discoveries are 'jaw dropping?'

Urban Tasting Room Failures

For quite sometime now, I've been wondering about the effectiveness of Urban Tasting Rooms. I haven't seen any good information to support their true worth. But our recent analysis for the first time shows that tasting rooms removed from the winery/vineyard have far less visitation comparatively, lower purchase revenue and far worse club conversions. By every imaginable metric we use today, the Downtown or Urban Tasting Room is a failure.

Ignoring for a moment the urban tasting rooms in places like Washington where the growing region is so remote from the population base, for most wineries, the reason to open a downtown/urban tasting room started with the thinking that 'we could attract more people to our brand if we we're in areas that attracted tourists.' That made sense, but that thinking overvalued convenience and accessibility as a consumer desire.

In the end what we've come to discover is what we already really knew: Visitors are seeking an experience. What we didn't fully appreciate is if tourists wanted to go to a wine bar to taste, that's what they would do.  And if a downtown tasting room is too much like a wine bar, the consumer won't pay as much as they would at the winery. Wine bars don't attract winery tourists. They attract wine tasters.

Click here to read the full article. 


2018 SVB State of the Wine Industry Follow-Up Videocast
27 March, 2018

Watch the follow-up video to SVB's annual videocast which goes deeper into the trends and topics shaping the wine industry.


Silicon Valley Bank Predicts the US Wine Industry Is at the Tail End of a 20-Year Growth Period
15 February, 2018

Rob McMillan, EVP and founder of Silicon Valley Bank’s Wine Division, writes one of the wine industry’s most authoritative annual reports that assesses current conditions and provides a unique forecast based on micro- and macroeconomic and behavioral trends. In this latest report, he says that successful wineries 10 years from now will be those that adapted to a different consumer with different values — a customer who uses the internet in new and interactive ways, is frugal and has less discretionary income than their generational predecessors.

This consumer rotation, along with several other indicators that point to reduced direct-to-consumer success, has specific implications for small wineries. Action is required now to stay ahead of these changes.

FORECASTS FOR 2018:

  • Consumers are leaving the lower price segments in favor of better-quality offerings, but after more than 20 years of straight-line growth trends, total volume growth is leveling off. Retiring baby boomers and frugal millennials are driving a rotation of consumer preferences. Premiumization will continue, but softening is likely on the luxury end for wineries without preexisting strong brands.
  • The premium wine segment will grow in the range of 4 to 8 percent, down from the estimate of 10 to 14 percent in 2017. For the industry as a whole, sales will rise by 2 to 4 percent, while volumes will increase slightly.
  • Acquisitions will cool somewhat from the torrid pace of the past three years as many of the major buyers digest their recent purchases. We will still see foreign purchases of US wineries and significant transactions for vineyard properties.
  • When 2018 totals are calculated, California will have crushed about 3.8 million tons of grapes, slightly more than in 2017. In the Pacific Northwest, Oregon will set another record in terms of yield, and Washington’s yield will slightly moderate.
  • For more than 20 years, we’ve seen regular increases in volume and price. But sustaining routine increases may be difficult for wineries given the low-growth, low-inflation environment. Price increases will be hard to pass through in 2018, so overall pricing will be flat.

Click here to download the report. 


2018 SVB Wine Report Videocast Replay
22 January, 2018

The 2018 Annual SVB Wine Industry Videocast was presented last Wednesday to a record audience both domestically and across the globe. You are welcome to replay and review the session above. 

I'm always happy when the videocast is over because it marks the end of 3+ months of writing and research, which is a marathon to begin with considering I have other job responsibilities and the research and report activities push through the Holiday Season. This year though, the process felt like running a half-marathon wearing ankle weights. 

SVB runs a Wine Conditions survey to support our report, but we had to cancel it this year because it was scheduled to go out October 12th; three days after the North Coast Fires started. With our offices closed and wineries scrambling in Napa and Sonoma, there was no way we could get the survey done. 

That will impact our trending efforts for years ahead of us because we'll have a gap year to deal with, but like everyone else we'll adjust. We will publish the Annual SVB Wine Report February 13th this year which is about 3 weeks later than normal, but hope you all anticipate the release and will read it, and engage in the dialogue of industry adaptation and evolution.

Read the full article here


SVB on Wine: Disturbing Sales Growth Trends Through September
09 January, 2018

Join me on Wednesday January 17th at 9:30am Pacific Time for a live videocast and discussion of the findings from the release of the 2018 SVB Wine Industry Report. 

 

REGISTER HERE

Joining me on the panel this year will be:

  • Gretchen Boock, Chief Executive Officer, Dobbes Family Estate / Wine By Joe
  • Mary Jo Dale, Marketing Director, Americas, Vinventions / Nomacorc
  • Paul Mabray, Wine Industry Digital Futurist and Director, Getemetry.com

It's going to be a great show but if you can't make the live videocast, please register to receive a link to the video replay and the complete 2018 Wine Report after the event.

Most of wineries have already developed their strategic plans for 2018 and are starting to execute. The plans had to be put together using history as a guide, laced with a hint of a best guess. That's just the way this family owned industry has to roll.

What would you say if I told you that growth in sales for 2017 which looked pretty good through mid-year ... hovering around 7%-9%, fell off the cliff in Q3 and came in for 9 months at 0.30%? That is zero-point-three-percent year to date for our benchmarks of Family Owned Wineries using financial statements. We'll be lucky to hit 4% growth for the year when factoring in what normally is a good October/November/December.

You might be saying, well that's just the average sized family winery, which is true - but the sales growth rate for larger wineries in distribution has also been dropping since the end of 2015.

What if I added that visitation to tasting rooms has been going through a decline for the past 5 years?

Don't you want to know what's happening?

The industry is pivoting and I can tell you for certain that winery owners need to take specific actions or be caught behind the change curve? I also believe 2018 will be a pretty good year for the industry as a whole.

Good analysis and information is hard to come by, so if you are now examining your plans for the year ahead, some questions you could already be asking might include:

  • What's happening with winery visitation growth?
  • What's happening with industry sales growth?
  • When will millennials come to the rescue?
  • Can wineries increase prices in 2017?
  • Are we entering a vineyard real estate bubble?
  • Will grape prices continue to rise?
  • Can luxury brands increase price?
  • How much can fine wine sales increase next year?
  • What varietals are selling and who is buying?
  • What role might bottled imports play?
  • Which price points are moving or stalled? 

I started researching in late October, began writing the Annual Wine Report in middle November, augmented my findings in early December and completed writing by December 18th. I think I have a pretty good guess what the year ahead will be like and I want to share it with you!


SVB on Wine: Fire Damage Becoming Clear
07 December, 2017

When you're standing in the middle of something, it's hard to understand just how big it is, and when the Napa fires were at the early stage and there was no progress in containment, I got a sense of just how big a story it was when I started taking press calls from around the globe. The reporters all wanted to know about the extent of the damage to the wine industry, having seen the pictures from Santa Rosa of utter destruction. It's not the first time I was in this position.

When the Napa Earthquake hit, I was tasked with trying to gauge the damage to the wine business for the Federal Disaster Declaration, but in that case I had some data to work with. This time, I had a phone, spotty cell coverage, no internet with widespread power outages so couldn't see news coverage, and was only keeping current with colleagues, family, and clients using texts and cell phone.

Worst Damage

Now, eight weeks after the fire started, the picture is a little clearer. The fires on the North Coast consumed 245,000 acres, destroyed at least 8,889  structures and killed 44 people, according to Cal Fire. In Santa Rosa alone, that number includes 4,655 homes representing an estimated 12,000 people who are left to recover their lives. That's a fact that can't be minimized and the numbers reflect an historic level of pain.

We also know a little more about PG&E's position on the costs of fighting the fires, and who might end up paying the final bill based on their testimony to the California Public Utility Commission. It's probably not surprising PG&E wants to pass on the costs of fighting the fire to their customers, but the early numbers being thrown out are an eye-popping: $13 billion with PG&E's wildfire insurance limited to $800 million.

With a $28 billion market cap, those early estimates on costs and liabilities are hardly trivial. The final numbers will depend on whether the utility's equipment is determined to be the cause of the fire which will galvanize class-action litigation. Someone will pay though and in the end because of the size of the loss, it will be a combination of insurance companies, PG&E shareholders, utility customers, and tax payers.

Wine Business

In the wine business we're still trying to discover the true losses but on the whole we did quite well with significant losses to wineries limited to about 10 in total.

Vineyards

We know that there were hundreds of small vineyards impacted in the hills that were burned. The extent of the damage is overwhelmingly light. The plastic drainage pipes in many vineyards melted below ground, right along with the above ground drip irrigation. The vines themselves we believe are resilient, but we won't be able to fully confirm our optimism until spring when the vines push.

Read the full article here


SVB on Wine: How Will We Recover from the Fires?
18 October, 2017

Was That Just Last Week?

Without full containment yet, many are already looking forward to begin the recovery, even with still blurry and red eyes.

When I think about the wildfires that scoured the North Coast of California this past week, I come up with a hodgepodge of visuals – waking up to the red glow out of my bedroom window on Sunday night when it all started, a bulldozer cutting a firebreak a half mile from my home Tuesday night and saving my block, watching the heartbreaking sight of a neighbor’s home burn to the ground on a ridge Monday morning, seeing blood red sunsets, the feeling of relief when power finally came back on, and being unable to sleep listening to my cellphone screaming out Nixle Alerts every half hour telling me about a new evacuation, wondering when it would be my turn.

There are so many stressful points from the past week from which I have a lot of new stories to tell, and lots of pictures that I’ve shared on social media. It was a week that seemed more like a month, reinforced by a blur of numbingly shocking scenes.

Fear of Heights

But the scene which I wished I’d taken a picture of, was one of me standing on top of my house Monday evening, looking like a meme of Burt the Chimney Sweep in Mary Poppins. Why was I on my roof? I was up there talking to reporters from France and the UK, all the while hiding behind the chimney to block the wind so I could hear the questions. 

I know I looked dumb because my wife drove up at that point, got out of her car and did the palm slap to the forehead followed by a shrug with hands in the air – the universal sign of, “have you lost your mind?”

Maybe I had lost it, but I was doing my job and improvising. No I wasn’t heroic standing on a roof to do a press interview. Maybe foolish though. The guy who cut the firebreak behind my house - now that was heroic. I was just looking for a cell signal at a time when phones weren't working.

Everyone in the North Coast has a story of doing what they needed to do to get a job done – buying someone’s coffee, helping a neighbor, contributing cash to a relief fund, making a sign for first responders, helping make and serve meals, hugging someone who lost their home. Everyone has a story of how they reacted and how they helped, and that’s why I’m excited about the next six months.

Let the Recovery Begin

What we’ve experienced is unprecedented, which means more heroic and out-of-the-box thinking will be needed during the long recovery ahead. We have to start by understanding the challenge which has to begin with the estimated 15,000 people who are out of their home, and many who’ve lost their jobs too. Stores will be hurt without that local spending. 

Some wineries have grapes that are on the vine still and now they have to make a decision to harvest and hope, or cut their losses early. We have no clue how many vineyards have been destroyed or what the smoke and heat means for the buds for next year's harvest. Even worse, last week tourists rightly evacuated faster than the smoke arrived. 

Tasting rooms and local restaurants were forced to close in what should be a busy time. I don't know the stats on restaurants in October, but the average winery receives 25% of their revenue through the tasting room. Last week because employees and visitors vanished, that number was 0%.

Hotels have done slightly better because there were 100,000 displaced people looking for a pillow this past week, but with evacuations being rescinded, hotels will now need to react to unseasonably low occupancy rates. Low occupancy doesn't just hurt restaurants, hotels and tasting rooms - it reduces the transit occupancy taxes that fund a major portion of local government budgets, money that's needed to provide services to the communities and our impacted neighbors.

Read the full article here


SVB on Wine: Is Opening a Downtown Tasting Room Smart?
25 September, 2017

The Regulatory Landscape

Falling on the heels of a growing anti-tourism movement, of late I've taken calls from officials in three particular cities that are now considering tightening regulations, or altogether banning the growth of downtown wine tasting rooms.

What else can officials do to make the wine business more difficult? That's what many are asking. Why are municipalities working so hard to hinder success of an industry that helps pull in millions in local occupancy taxes, and donates many more millions to charity? Answer: It's just politics.

The wine industry isn't sufficiently engaging in the debate so we have ourselves to blame in part. We have a fight on our hands but don't show up in force to planning meetings to support applications. 

We make it harder on officials who only hear from their constituent nay-saying minority. To the credit of the officials, one thing they are doing is asking around for data and facts that might help balance the debate but I'm wondering if opening a downtown or urban tasting room is even a good business decision?

Banning Tasting Rooms

Should local officials ever consider a moratorium on new tasting rooms as we presently read in the press? My answer is absolutely yes they should debate and consider it because land-use and sensible zoning can have a positive impact for everyone in a community, including wineries. It's a worthwhile conversation.

A well-considered downtown with tourism as a draw should have complimentary businesses to pull in visitors. Getting the right blend of business isn't easy though, especially when anti-change elements dominate the discussion as has happened in Saint Helena, CA which is the poster-child for unintended consequence of following that path. 

But there are other important business questions to be asked before getting to the permit stage:

Is it a good business decision to open a downtown tasting room in the first place? Will it be successful? What conditions will make it successful or kill it? If there are already a lot of tasting rooms, is there room for one more or will that be one too many?

Read the full article here


SVB on Wine: Premium Wine Sales Decelerating
05 September, 2017

The Big Short

It's easy to tell people what they want to hear. It's harder to tell them what they don't want to hear.

In 2007 I saw the above chart that tracked US home prices versus median family income. With other indicators in the market, I was convinced there was a real estate bubble already in the process of bursting and I started talking about it in speeches. The result of my prescience? I stopped getting speaking invitations and in one speech had the organizer ask if I could be a little more cheery. 

People don't want to consider the downside risk in business when things are going well. 

If I told you today what you wanted to hear, I would say that wine consumption is growing in both volume and dollars and consumers are continuing to trade up above $9.00. I would tell you that grape prices are at an all-time high and trending higher right along with land prices. 

That's true and might get me more important speaking engagements, but I'd rather you know about an underlying trend I'm seeing that's more than a little concerning. If I'm right, it's going to change the way you are thinking about business right now.

Winter Is Coming

While premiumization is in full force and the wine business is still growing, today we are at a tipping point: The growth rate in premium wine is decelerating and has been since late 2015. 

Let me say that in more defined terms: Using Nielsen Scan Data in the chart titled Growth in US$, you can clearly see the rate of growth in wine priced above $9.00 is declining. That's not saying wine sales are declining, but rather the positive growth rate we've seen in premium wine for a very long time is clearly decelerating.

By middle 2018 to the start of 2019, if the trends hold, wine as a category will have zero growth. That doesn't seem right to me intuitively. Isn't everything moving along well in premium markets? On the surface that seems to contradict everything else being written today. Can't I just be a little more cheery?

Disbelief & Skepticism

The first thing I do when I see surprising, contradictory or confusing data is understand bias and question the context. It's possible to get bad information from otherwise good research.

Nielsen data are biased to wine sold through wholesale. It excludes some non-traditional channel information like Costco, DtC sales, and some private labels like Aldi and Lidl that don't participate in syndicated data collection. So it's possible the decline isn't a decline at all, but a channel shift Nielsen doesn't pick up. Costco is the largest wine retailer and has close to $2BN of wine sales annually. DtC could also impact the Nielsen trend as there are more than $2BN of sales in that channel too, and sales are clearly growing there. 

Looking at public information, Constellation's quarter ending 3/31/17 showed wine sales trended lower by 3.8%, but they attributed that to the divestiture of their Canadian wine business. The sales decline is still an interesting fact because here we're talking about total sales declines in a premium wine company, not just declines in a growth rate. Still, their explanation is plausible. 

No matter what, I always have a hard time dismissing obvious trends from Nielsen, so we need to dig a bit deeper.

Read the full article here


SVB Videocast: Secrets for Growing Direct-To-Consumer Wine Sales 2017
19 May, 2017

On May 17, 2017, SVB's Wine Division hosted a live videocast discussion of trends in direct-to-consumer wine sales focused on growth trends and strategies. The discussion was led by Rob McMillan, Founder of SVB's wine practice, and featured industry experts Liz Mercer, Key Account Director, Wise Academy, Mary Jo Dale, Vinventions/Nomacorc, Cyrill Penn, Editor in Chief of Wine Business Monthly.

The Secrets for Growing Direct-to-Consumer Wine Sales videocast provided insights into this important sector of the wine business and was based on findings from a survey of over 850 wineries.

The panel discussed some of the findings and compilation of responses from almost 850 wineries. Watch the video replay for expert analysis of the following topics:

  • Conversion rates of buyers
  • Impact of venue choice on tasting room success
  • Regional tasting room comparisons
  • Club metrics

The video replay can also be accessed here.

Additional analysis will be available in the July 1 edition of Wine Business Monthly and will be posted on their website.

Please contact us here to learn more about the SVB Wine Division.

 


2017 Outlook: Premium Wine Sales and Prices to Rise
30 January, 2017

Rob McMillan, founder of Silicon Valley Bank’s Wine Division, writes one of the wine industry’s most authoritative annual reports that assesses current conditions and provides a unique forecast based on a survey of more than 500 wineries.

MAJOR FORECASTS FOR 2017:

  • Wines sold between $12 and $25 will grow in demand as will high-end luxury wines with an established brand. We expect to see small price increases in these segments, with volume and price drops for bottles priced under $9.
  • Premium wine sales will increase between 10 and 14 percent above 2016 levels.
  • Per capita consumption faces crosscurrents with retiring wine-loyal baby boomers being replaced by less affluent millennials who are ambivalent about their alcoholic beverage of choice. If economic conditions continue to improve, however, per capita consumption should be slightly higher in 2017.
  • Today, millennials are beginning to affect the lower price range of premium sales. Their presence is most visible in the $8 to $11.99 red blend category, but they gradually will shift from blends to varietal wines or imports as their incomes grow.
  • Even with winery M&A facing headwinds from higher interest rates, winery acquisitions should remain quite active through 2017.
  • Farm labor supply and costs are the dominant concerns in the wine business in 2017.

To view and download full report CLICK HERE.


Silicon Valley Bank: State of the Wine Industry 2016
02 November, 2016

This year we hope marks the easing of one of the longest droughts in California history. The national economy, emerging from a long real-estate related recession, is just beginning to deliver a consistent pulse. The stock market was getting back to record highs, coming off one of the worst worldwide downturns in the history of equities. The price of oil has been cut by more than 50 percent and oil from Non-OPEC producing countries is flooding the market. OPEC continues to show that it’s unable to enforce production quotas and manage price. 

In the wine business, the grape harvest is regarded again as excellent in quality but with lower yields across most regions and varietals following a string of several good vintages. Premium wines are...

Click here to read the entire State of the Wine Industry 2016 Report 

Written by Rob McMillan, EVP and Founder Silicon Valley Bank Wine Division


Annual SVB Wine Conditions Survey Ends Wednesday Oct. 19
10 October, 2016

Face it. Getting actionable information in the wine business is challenging. You can pay more than $2,000 for an annual report on the wine business and in return, get regurgitated information. I once did that myself.

Thinking I would check on the offering of a group putting out a comprehensive report on the wine business, I was disappointed to find it was closer to a college level report that consolidated information from primary research. In fact several places cited the Silicon Valley Bank Annual Wine Report to support their findings.

There are a few places where you can get good primary research on the trends facing the business. For the past decade we've led a survey and conducted research with more than 600 wineries and the major AVA's participating from across the country each year. Why are we so lucky to get such strong participation? 

I think there are a few reasons:

We deliver good and needed information to the business for free.

We keep the information anonymous and noone can back into responses to determine who responded.

We've earned the owner's trust that we aren't using your information to add you to a sales calling list.

We give back more than we take. Only survey participants receive the complete data set back and that helps everyone in planning for the year ahead.

So I hope you will consider taking the survey this year. It takes about 12 minutes and in exchange, we will send without cost, the complete survey results, dozens of relevant graphs, and our early analysis on wine industry conditions. [Last year's survey results].

The survey is scheduled to close next Friday so please don't wait. Your participation will pay itself back many times over.

Click here to take the survey now!


Current Benchmarks for your Tasting Room
11 March, 2016

We know that the average winery today has nearly 60% of their sales made direct largely through wine clubs and tasting rooms. How do we know that? Through an annual survey conducted by SVB.
 
If you have a club or a tasting room, how do you know you are performing at the top of the club performance, or even above the average? If I asked you how many wineries pay for data capture within their comp structure in the tasting room, what would be your guess? 
 
Today 168 wineries have responded to the SVB Annual Tasting Room Survey and here is the result thus far for that question:
 
 
What about the average dollar comp awarded to tasting room staff in your region. Is that of interest? How about the average tenure of a club member sorted out by average price point so you can compare your winery against a winery with a similar price point? Would it help to know the average gain in club members in your AVA last year, or what about the average number of lost members?
 
Each of those questions are examples of benchmarks that will be available to you for free but here's the catch: The benchmarks are only available to those who take the 10-15 minutes to complete the survey. Isn't that an investment well worth making?
 
Take the Survey
 
 
When the survey is closed on March 18th, we will spend over 200 person hours completing the analysis and will then return charts, graphs, and an excel spreadsheet cleaned of any identifying information. You will be able to dig even deeper into the data if you want.
 
In May we will host a live videocast to go over some of the results as we did last year.
 
 
In the July issue of Wine Business Monthly, the magazine will publish some of the information and conclusions in their annual Direct To Consumer edition.
 
None of the above is possible without the 10-15 minutes invested in the survey itself. Please consider taking the time to answer the survey questions. Your participation will improve both your own direct program, and help the US wine industry improve.
 
Start the survey now: http://bit.ly/1U0KuSa 
 
-----------------------------
 
If you feel this content is worthwhile, please promote the link in your favorite social media platform, or even better - please forward the link to your winery colleagues and ask them to participate. 
 
If you would like your AVA to participate, we will also send them free Regional Benchmarks for their own use if we have a statistically significant sample size and an address to send the information. 
 

 


Open: 2016 Survey of Wine Conditions
12 October, 2015

Take the survey
 
 
Take the Survey
 
What's really going on in the wine business this moment? Can wineries raise prices? What's the supply situation in the Central Valley? Is there good land available for planting anywhere? Where is there too much supply? With the crush in the tanks now, winery owners are starting to think about 2016 and making plans.
 
I started researching for the Annual State of the Wine Industry Report in August and have a good idea what it's going to look like already, but I always like getting another layer of information of the current situation. So for the past decade now, I've led a survey of the current conditions in which more than 600 wineries and the major AVA's from across the country participate every year.
 
Ten years since we started this, I'm told by winery owners that new surveys now show up in email boxes every week. Thankfully I'm consistently told, "We look for your survey and make sure to participate." Why are we so lucky to get this kind of participation? I think there are a few reasons but bottom line, we keep the information anonymous, we aren't selling the information, and we give back more than we take.
 
The survey takes about 10 minutes and in exchange, we send without cost the complete survey results, dozens of relevant graphs, and our early analysis on wine industry conditions. [Last year's survey results].
 
Note the results this year will be released in early December only to those who participate in the survey. Ready to take the survey? Click on the link below.

 

Take the Survey

2015 Secrets of a Successful Tasting Room
08 June, 2015

On May 12, 2015, SVB’s wine division hosted an interactive video discussion of trends in tasting room and wine club practices. The discussion was led by Rob McMillan, founder of SVB’s wine practice, and featured industry experts Sonyia Grabski, Vice President of Sales & Marketing, Sullivan Vineyards, Cyril Penn, Editor in Chief, Wine Business Monthly and Craig Root, Founder, Craig Root and Associates.


Silicon Valley Bank Foresees Breakout Year Ahead for US Fine Wine Business
21 January, 2015

Annual State of the Wine Industry Report Forecasts Growth in 2015:

  • Increased Demand for Fine Wine Driven by an Improving Economy
  • 14-18% Sales Growth
  • Higher Bottle Prices

ST. HELENA, Calif. –– January 21, 2015 — Silicon Valley Bank, a leading provider of commercial banking services to the innovation sector and the wine industry, releases its Annual State of the Wine Industry Report in a live broadcast from the SVB TV studio today.

“We are seeing real strength in the U.S. economy going into 2015, which will increase demand for wine,” said Rob McMillan, founder of Silicon Valley Bank’s Wine Division and author of the report. “Declining oil prices are transferring wealth to oil-consuming countries, the employment picture is improving, the US dollar is strengthening and interest rates will move at a measured pace.  As long as the industrialized world economies can hold their own, the middle-income consumer will see improved prospects. We’ll be toasting to that.”

“We are especially positive on the year ahead,” McMillan said. “We expect the fine wine business will experience accelerating growth, achieving 14–18 percent sales growth in 2015. At the same time, the cellars are full with several consecutive years of very good vintages.”

Based on a survey of nearly 600 West Coast wineries, in-house expertise and ongoing research, SVB’s Annual State of the Wine Industry report covers trends and addresses current issues facing the US wine industry. The report offers unique data and observations that help wine business owners and managers think critically about their business strategies.

Key findings and predictions: 

• Supply: We expect to see the third consecutive harvest of heavy yield and great quality across most appellations.
• Sales Growth: After finishing the year at the top end of our predicted sales growth of 6% - 10% in 2014, we are predicting a breakout year of growth in the fine wine category in the 14%-18% range in 2015.

• Pricing: While the large supply of wines in the cellars should normally indicate continued depressed pricing, we believe 2015 will be a year of both volume and price increases in the fine wine segment, driven by an improving economy and higher demand.

• Demand: Wines priced below $7 a bottle performed poorly both on and off premise in 2014. This poor performance is likely to continue in 2015.

• Planting: Grape planting is shifting regionally. Oregon and Washington are showing strong growth in planting on a percentage basis and we expect that this will continue for the foreseeable future given favorable quality and price dynamics relative to the fine wine growing regions in California.

 

Read the full report.

McMillan is discussing the report and the state of the industry in a live broadcast with Paul Mabray of VinTank, Glenn Proctor of the Ciatti Company and Amy Hoopes of Wente Family Estates at an online event today at 9:30 a.m. Pacific time. A replay of the discussion will be available here later this week.

To participate in Silicon Valley Bank’s annual Wine Conditions Survey in the future contact the author Rob McMillan at rmcmillan@svb.com or on Twitter @SVBWine.

About Silicon Valley Bank’s Wine Division 
Banking the world's most innovative companies and exclusive wineries, SVB offers diverse financial services, knowledge, global networks, and world class service to increase our clients' probability of success. Our Wine Division specializes in commercial banking for premium wineries and vineyards and the industries that support them. SVB has the largest team of commercial bankers dedicated to the wine industry of any bank nationwide. Founded in 1994, SVB’s Wine Division has offices in Napa and Sonoma counties and serves clients in the fine wine producing regions of California, Oregon and Washington. By virtue of its dedication to the wine industry, SVB is able to support its clients consistently through economic and growth cycles, and offer guidance on many aspects of their business, beyond traditional banking services. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB). More information on the company can be found at www.svb.com.  

Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve. SVB Financial Group is also a member of the Federal Reserve. 


Annual State of the Wine Industry - Survey Results 2014
10 December, 2014

82% of wineries reported overall financial health of "good" or better for 2014. This is up 7% over the previous year. This trend is expected to continue as the grapes from three strong harvests (2012,2013, and 2014) make their way into the market.

- Consensus view of 2014 shows 79% of respondents reporting having a good year or better. The Sierra Foothills, CA region reported the largest proportion of disappointment which correlates directly to issues felt during the California drought. Over 41% of respondents from that region reported feeling some issues from the drought.

- 60% of all wineries are projecting price increases per retail bottle with only 6% projecting a decrease in 2015. The majority of increases are expected to be small across all price points except the >$69 range. Wines with a price point >$69 are the most bullish with 45% reporting increases of moderate to strong.

To read the full report, CLICK HERE

 


2014 - 2015 Annual Wine Conditions Survey
15 October, 2014

Each year, about 600 wineries take part in our Annual Wine Conditions Survey from all regions. We hope you will consider participating this year. It will only take about five minutes of your time to respond. In exchange, we will send you the results of the complete survey, graphs, and some early analysis on wine industry conditions for your use in planning going into 2015.

View the analysis from last year here.

The survey has just 20 questions, four of which are identifiers such as the region where you produce wine. The 16 core survey questions are geared at understanding vintners’ challenges in the present operating environment. We will condense the comments and return the information in a non-identifiable manner so you can get a better feeling for what your peers see, and comments they have about the present business conditions.

Your answers will be strictly confidential. We promise not to add you to any marketing list, and we will send you the results of the survey at no cost in early December.

The survey will be open through the end of business Friday, October 24th.

If you have any questions, please do not hesitate to contact me directly at rmcmillan@svb.com or 707.967.1367.

Thanks for your cooperation, 
Rob McMillan EVP & Founder Premium Wine Division


Looking to Purchase a Winery? You’re in Luck
04 June, 2014

Study by Silicon Valley Bank’s Wine Division Indicates 524* West Coast Wineries are Strongly Considering a Sale Within the Next Five Years

Silicon Valley Bank, a leading provider of commercial banking services to the innovation sector and the wine industry, released a new study, “Ownership Transitions in the Wine Industry,” today. Based on a survey of 646 West Coast wineries, the report finds that 31% of wineries from California, Oregon and Washington would consider selling under the right circumstances, and of those 10.5% are strongly considering a sale or are hopeful a sale will take place.

The study is a follow-up to a similar report released in 2008 by Silicon Valley Bank and Scion Advisors that predicted 50 percent of West Coast fine wine businesses would transition to new ownership by 2018.
 

“If you’re in the market for a winery as a commercial entity or a family business, there’s never been a better time,” said Rob McMillan, founder of Silicon Valley Bank’s Wine Division and author of the report. “The current pace of ownership transitions in the last - and next - few years is the highest the West Coast wine industry has ever seen. There are plenty of opportunities for strategic buyers to acquire labels and production capacity, and for high net worth individuals to find their own place in the fine wine business.”

Key findings from Ownership Transitions in the Wine Industry 2014: 

 • 10.5% of West Coast wineries are likely to sell in the next five years. Extrapolating from these results, 524 West Coast wineries are strongly considering a sale within the next five years*.
• The number of wineries considering a sale is roughly split between commercial wineries and lifestyle properties.
• Wineries in Washington State are more likely to be sold in the near term versus other regions.
• 31% of wineries are open to a sale under the right circumstances. Though that represents a record number of wineries, the percentage has dropped from 51% in a 2008 survey conducted by Silicon Valley Bank, indicating the industry is partially through the predicted transition.

Read the full report here:http://www.svb.com/Blogs/Rob_McMillan/Ownership_Transitions_in_the_Wine_Industry_2014/

To view Silicon Valley Bank’s recently released report, “Secrets of a Successful Tasting Room,” visithttp://www.svb.com/live-streaming/2014-wine-tasting/ for the report and an on-demand replay of a videocast.
 

To participate in Silicon Valley Bank’s annual Wine Conditions Survey in the future, and receive the full data set and restricted participant analysis, contact the author Rob McMillan at rmcmillan@svb.com or on Twitter @SVBWine.

*524 wineries strongly considering a sale in the next five years is an extrapolation of the 10.5% of survey respondents multiplied by the total number of West Coast Wineries: 4,989. Source: California Wine Institute (3,754), Oregon Wine Board (690), Washington State Wine Commission (545).
 

About Silicon Valley Bank’s Wine Division 
Silicon Valley Bank is the premier commercial bank for emerging, growth and mature companies in the technology, life science, private equity and premium wine industries. Its Wine Division specializes in commercial banking for premium wineries and vineyards and the industries that support them. Founded in 1994, SVB’s Wine Division has offices in Napa and Sonoma counties and serves clients in the fine wine producing regions of California, Oregon and Washington. By virtue of its dedication to the wine industry, Silicon Valley Bank is able to support its clients consistently through economic and growth cycles, and offer guidance on many aspects of their business, beyond traditional banking services. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB). More information on the company can be found at www.svb.com. 

Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve. SVB Financial Group is also a member of the Federal Reserve. 

Contact:
Carrie Merritt    
SVB Financial Group  
503.574.3705
cmerritt@svb.com  
@SVBCarrie


Videocast: 2014 Tasting Room Survey Results
20 May, 2014

The 2014 Tasting Room Survey is a compilation of responses from 500 winemakers from across the U.S. and Canada. The purpose of the survey was to determine trends in tasting room and wine club practices and procedures.

In this interactive video discussion SVB’s Rob McMillan reviews survey results and interprets industry trends with a panel of experts.

Some of the topics we cover: 

  • Conversion rates of visitors to buyers
  • Impact of venue choice on tasting room success
  • Regional Tasting Room Comparisons
  • Club Metrics
  • Expert Panel Analysis

Download the 2014 Wine Survey Results Presentation (PDF)

 


Live Video Conference: Secret of a Successful Wine Tasting Room- Register Now
06 May, 2014


Live Webcast May 15, 2014

Please join us for an interactive video discussion of Silicon Valley Bank's 2014 Tasting Room Survey. This promises to be a lively conversation as SVB's Rob McMillan reviews survey results and interprets industry trends with a panel of experts.

Some of the topics we'll cover:

  • Conversion rates of visitors to buyers
  • Impact of venue choice on tasting room success
  • Regional tasting room comparisons
  • Club metrics
  • Expert panel analysis

Speakers Rob McMillan- EVP & Founder, SVB Wine Division; Cyril Penn - Editor in Chief, Wine Business Monthly; Mary Jo Dale- Senior Vice President of Marketing and Consumer Sales, Crimson Wine Group; and Lesley Berglund - Co-Founder & Chairman, WISE

Sign up for the presentation and receive a link to the replay and the complete Silicon Valley Bank 2014 Tasting Room Survey results after the webinar.

Join Us On Twitter: Follow Rob @SVBWine


Videocast: 2014 Tasting Room Survey Results
06 May, 2014

The 2014 Tasting Room Survey is a compilation of responses from 500 winemakers from across the U.S. and Canada. The purpose of the survey was to determine trends in tasting room and wine club practices and procedures.

In this interactive video discussion SVB's Rob McMillan reviews survey results and interprets industry trends with a panel of experts.

Some of the topics we cover: 

  • Conversion rates of visitors to buyers
  • Impact of venue choice on tasting room success
  • Regional Tasting Room Comparisons
  • Club Metrics
  • Expert Panel Analysis

 

 

Download the 2014 Wine Survey Results Presentation (PDF)


Following Three Years of Declines, Silicon Valley Bank Forecasts 6-10% US Sales Growth for Fine Wine in 2014
16 January, 2014


Company News January 16, 2014

Annual State of the Wine Industry Report Predicts Stable Year Ahead, and Future Headwinds as Baby Boomers Retire

ST. HELENA, Calif. –– January 16, 2013 — Silicon Valley Bank, a leading provider of commercial banking services to the innovation sector and the wine industry, releases its Annual State of the Wine Industry Report in a live broadcast from the SVB TV studio today. Based on a survey of nearly 650 West Coast wineries, in-house expertise and ongoing research, the report covers trends and addresses current issues facing the US wine industry. The report offers unique data and observations that help wine business owners and managers think critically about their business strategies.


“Despite news to the contrary in recent months, wine supply is in balance heading into 2014 and we expect the highest rate of sales growth since the recession, despite a tough economy,” said Rob McMillan, founder of Silicon Valley Bank’s Wine Division and author of the report. “News is good for the consumer: demand is up, supply is in good shape and pricing is stable. For the winery, however, grape costs and flat consumer pricing means lower profitability.”


“While this year is ultimately expected to be a healthy one for US wineries, if we peer into the future 5-7 years, we believe the headwinds will increase significantly as more Baby Boomers retire,” McMillan said. “50 and 60-somethings purchase about half of fine wine in the US. As they retire, and their purchasing power declines, the younger generation can’t pick up the slack immediately, due to lower income, and access and the proclivity to purchase more foreign wine. Astute fine wine producers will be adjusting their strategies accordingly.”
Key findings and predictions from SVB’s Annual State of the Wine Industry Report: See infographic

  • Short-term: Continued growth in the demand for wine and limited pricing power for producers
  • Long-term: Baby Boomers’ declining demand for wine will not be immediately replaced by Millennials’ demand, impacting the ability for wineries to sustain their current rate of growth
  • Supply: Expect final numbers on the 2013 harvest to reach 3.94 million tons, which is the second largest harvest on record in California after 4 million tons harvested in 2012.
  • Sales Growth: In fine wine, sales growth is predicted to be in the range of 6-10 percent in 2014, which is the first increase in three years
  • Pricing: Bottle pricing will remain stable, increased grape and bulk wine costs are not being passed onto the consumer, therefore winery gross profits will be down
  • Demand: Luxury wines and $10-$18 bottles will see greatest growth in demand 
  • M&A: Mergers and vineyard acquisitions will continue at a record pace.


Read the full report.


McMillan is discussing the report and the state of the industry in a live broadcast with Paul Mabray of VinTank , Mario Zepponi, Principal at Zepponi & Company, and Glenn Proctor, Partner at the Ciatti Company at an online event today at 9:30 a.m. Pacific time. A replay of the discussion will be available here later this week.


To participate in Silicon Valley Bank’s annual Wine Conditions Survey in the future, and as such receive the full data set and restricted participant analysis, contact the author Rob McMillan at rmcmillan@svb.com or on Twitter @SVBWine.

About Silicon Valley Bank’s Wine Division Silicon Valley Bank is the premier commercial bank for emerging, growth and mature companies in the technology, life science, private equity and premium wine industries. Its Wine Division specializes in commercial banking for premium wineries and vineyards and the industries that support them. SVB has the largest team of commercial bankers dedicated to the wine industry of any bank nationwide. Founded in 1994, SVB’s Wine Division has offices in Napa and Sonoma counties and serves clients in the fine wine producing regions of California, Oregon and Washington. By virtue of its dedication to the wine industry, Silicon Valley Bank is able to support its clients consistently through economic and growth cycles, and offer guidance on many aspects of their business, beyond traditional banking services. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB). More information on the company can be found at www.svb.com/winedivision.


2014 SVB Wine Report Live Video Conference - Register Now
19 December, 2013

2014 Silicon Valley Bank Wine Report

Live Video Conference
Thursday January 16, 2014
9:30 a.m. - 10:30 a.m. Pacific Time

Register Now

Please join Rob McMillan, EVP & founder of Silicon Valley Bank's Wine Division, and an expert panel as they discuss the wine business and findings from the 2014 State of the Wine Industry Report. Rob will be joined by special guest Paul Mabray, Chief Strategy Officer of VinTank; Mario Zepponi, Principal at Zepponi & Company; and Glenn Proctor, Partner in the Ciatti Company, in this interactive video conference, including live viewer Q & A.

This annual industry report is based on SVB's in-depth survey of wine industry experts and insiders, third-party research, and Rob's unique perspective as a long-time member of the wine industry.

This presentation will include insight on:

  • Winery financial performance
  • Predictions on 2014 sales growth
  • Wine inventory position
  • Consumer demand trends
  • Harvest yields and their impacts
  • Bottle pricing decisions
  • M&A and vineyard acquisitions
  • Bulk import activity
  • Digital trends (CRM, DtC Sales, Social Media, 3rd-Party      Marketers, and Compliance)

Sign up for the presentation and receive a link to the replay and the complete Silicon Valley Bank 2014 Wine Industry Reportafter the webinar.

Join Us On Twitter:
Follow Rob (@SVBWine) and Paul (@pmabray) on Twitter and join the conversation before, during, and after the webinar by using #SVBWine.


Annual Wine Conditions Survey
22 October, 2013

SVB Wine Division

Dear Vintner,

Each year, about 500 wineries take part in our Annual Wine Conditions Survey from all regions. We hope you will consider participating this year. It will only take about 5 minutes of your time to respond. In exchange, we will send you the results of the complete survey, graphs, and some early analysis on wine industry conditions for your use in planning going into 2014. Below is the link to the analysis from last year.

View the analysis from last year here.

The survey has just 15 survey questions, 4 of which are identifiers such as the region where you produce wine. The 11 core survey questions are geared at understanding vintners' challenges in the present operating environment. We will condense the comments and return the information in a non-identifiable manner so you can get a better feeling for what your peers see, and comments they have about the present business conditions.

Your answers will be strictly confidential. We promise not add you to any marketing list, and we will send you the results of the survey at no cost in late November.

The survey will be open through the end of business Friday, November 8th.

Start Survey

If you are not the best person to answer these questions, we would greatly appreciate you sharing this with the person at your winery best suited to respond.

Thanks for your support in better understanding the US Wine Business.

Sincerely,

Rob McMillan
EVP & Founder, Premium Wine Division
Silicon Valley Bank

If you are having difficulty connecting to the survey, please copy and paste the following link into your Internet browser:
http://svbwinesurvey.questionpro.com/


Silicon Valley Bank Launches 30 Years 30 Causes Campaign
11 July, 2013

In Celebration of 30 Years in Business, Company Kicks Off Series of Community Service Events Around the World

SANTA CLARA, Calif. –– July 11, 2013 — Silicon Valley Bank, financial partner to the innovation sector, its investors, and the wine industry, launched a global community service campaign in honor of the company’s 30th anniversary. Silicon Valley Bank’s 1,650 employees in more than 30 cities across the US and internationally, will participate in volunteer events for not-for-profit organizations in their local area throughout the remainder of the year.

“Our people are as driven to support meaningful causes as they are to support our clients, so it came as no surprise when we asked our employees how we should celebrate our 30th year in business, they said they wanted to give back,” said Greg Becker, President and CEO, Silicon Valley Bank. “We know that positive change starts with individuals. We’re looking forward to giving our employees an opportunity to engage our clients and collectively make an impact where they live and work.”

Silicon Valley Bank opened its doors in the heart of Silicon Valley in 1983 to lend startup capital to companies that other banks thought too risky to take on as clients. Today, SVB provides commercial banking services, industry knowledge and a vast global network of connections to companies of all sizes in the technology, life science, cleantech, venture capital, private equity and premium wine industries. 

The “30 Years |30 Causes” initiative was developed after the company crowd sourced ideas from its employees to celebrate its anniversary. The global series of events begins today at the Twin Cities Habitat for Humanity Entrepreneur House. SVB’s team based in Minnesota will contribute to a full house renovation in St. Paul. Our Northern Virginia/ DC team will upgrade and increase the dog kennels at the Commonwealth Humane Societyon July 19th and the Portland, OR-based team will be helping teens build and harvest vegetable gardens at theSupaFresh Youth Farm on August 16th. By year end, the company expects to complete 30 events in 15 states and five countries. 

Points of Light is assisting SVB with the development and execution of its events worldwide.

A listing of SVB’s 30 Years | 30 causes events, as well as photos, will be updated at svb.com/svb-30-years/  and www.facebook.com/SVBFinancialGroup . Follow @SVB_Financial’s community service initiatives on Twitter with #SVB30. 

About Silicon Valley Bank
Banking the world's most innovative companies and exclusive wineries, SVB's diverse financial services, knowledge, global network, and world class service increase our clients' probability of success. With $23 billion in assets and more than 1,600 employees, we provide commercial, international and private banking through 34 locations worldwide. Forbes Magazine ranks us among America's Best Banks and Fortune considered SVB one of the best places to work. (Nasdaq: SIVB) www.svb.com

Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.


Secrets of the Successful Tasting Room Revealed
12 June, 2013

The 2013 Tasting Room Survey is a compilation of responses from 500 winemakers from across the U.S. and Canada. The purpose of the survey was to determine trends in tasting room and wine club practices and procedures. In this interactive video discussion SVB's Rob McMillan will review survey results and interpret industry trends with our panel of experts including: Cyril Penn of Wine Business Monthly, Brian Baker of Chateau Montelena and Ahin Thomas of the Vintners' Alliance.

Topics include: 
• Direct sales through tasting rooms and revenue generated
• Fees and fee reimbursement
• Staff compensation and benefits
• CRM integration
• Detailed wine club metrics


Live Videocast: Secrets of a Sucessful Tasting Room: 2013 Survey Results
10 May, 2013

Live Videocast: Secrets of a Sucessful Tasting Room: 2013 Survey Results

Tuesday, May 21, 2013
9:30 a.m. - 10:30 a.m. Pacific Time

Register Now

Please join us for an interactive video discussion of Wine Business Monthly and Silicon Valley Bank's 2013 Tasting Room Survey. This promises to be a lively conversation as SVB's Rob McMillan reviews survey results and interprets industry trends with our panel of experts including: Cyril Penn of Wine Business Monthly, Brian Baker of Chateau Montelena and Ahin Thomas of the Vintners' Alliance.

Some of the topics we'll cover:

  • Direct sales through tasting rooms and revenue generated
  • Fees and fee reimbursement
  • Staff compensation and benefits
  • CRM integration
  • Detailed wine club metrics

Speakers
Rob McMillan - EVP & Founder, SVB Wine Division
Cyril Penn - Editor in Chief, Wine Business Monthly
Brian Baker - VP Sales & Marketing, Chateau Montelena
Ahin Thomas - Co-founder & President Vintners' Alliance

Sign up for the presentation and receive a link to the replay and the complete Silicon Valley Bank 2013 Tasting Room Survey results after the webinar.

Join Us On Twitter: Follow Rob (@SVBWine)


Silicon Valley Bank Launches Mobile Banking App for Businesses
26 March, 2013


Silicon Valley Bank Launches Mobile Banking App for Businesses

SANTA CLARA, CA –– March 26, 2013 —

Silicon Valley Bank, financial partner to technology and life science companies of all sizes, launched Apple® and Android™ mobile banking apps for its commercial clients in the US.


Designed specifically to help Silicon Valley Bank’s technology-focused clients, the app helps users manage their finances, schedule and approve payments, and transfer funds securely from the convenience of a tablet or smart phone.


“The SVB mobile banking app is very intuitive,” said Cyriac Roeding, CEO of Shopkick. “It’s a great basis for further functionality, and the account overview is simple.”


Using their existing online banking credentials, Silicon Valley Bank’s clients can log into the mobile banking app to complete a variety of tasks:    

  • Monitor SVB commercial bank accounts and related transaction history    
  • Receive push notifications for pending wires and approve wires on the go    
  • Schedule outgoing wires and transfers between SVB accounts    
  • Use simple navigation to sort, filter, and search accounts and transaction history


“The app works the way our clients want to work because we engaged some of our most innovative clients throughout the design process,” said Bruce Wallace, Chief Operating Officer of Silicon Valley Bank. “Our mobile applications integrate with our online banking platform allowing our clients to, for example, initiate transactions via the app on their tablets, review those transactions in online banking, and approve transactions via the app on their phone. It’s flexible.”


With simple design and seamless integration with online banking services, Silicon Valley Bank’s mobile application is easy to use and has many of the same security features used in the online banking platform, including data encryption, user authentication, and multiple access controls.

About Silicon Valley Bank Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 28 U.S. offices and six international operations. (Nasdaq: SIVB) www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.

Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Android is a trademark of Google, Inc., registered in the U.S. and other countries.


Silicon Valley Bank State of the Wine Industry Report Release
29 January, 2013

Silicon Valley Bank's annual State of the Wine Industry Report forecasts 4-8% sales growth in wine for 2013. The report identifies trends and addresses current issues facing the U.S. wine industry, offering data and observations that help that wineries can use to develop their business strategies.

Silicon Valley Bank's wine report is based on its in-house expertise as one of the largest bankers to the West Coast wine industry for nearly 20 years, a proprietary database of more than a decade of winery financials, ongoing research, and an annual survey of 450 West Coast wineries.

The report findings were discussed in a January 15, 2013 video webcast with author Rob McMillan, founder of Silicon Valley Bank's wine division, Paul Mabray of VinTank, Tony Correia of The Correia Company and MJ Dale of KLH Consulting.

Read the full report


Silicon Valley Bank’s Wine Report Live Video Conference: Register Now
24 December, 2012

Register now: http://www.svb.com/wine-report/

Join us for a lively and insightful round table discussion as Rob McMillan, founder of Silicon Valley Bank's Wine Division, reveals findings from Silicon Valley Bank’s 2013 Wine Industry report. Rob will be joined by industry luminaries Paul Mabray, Chief Strategy Officer of VinTank, Tony Correia, Founder Correia-Xavier Inc., and Mary Jo Dale, Chief Consumer Direct Officer of KLH Consulting, in this first of its kind live video conference, including live viewer Q&A.

Webinar Details:
Tuesday, January 15, 2013
9:30 - 10:30 a.m. Pacific Time

This annual industry report is based on SVB's in-depth survey of wine industry experts and insiders, third-party research and Rob's unique perspective as a long-time member of the wine industry.

This presentation will include insight on:

  • Winery inventory positions and consumer demand
  • Impact of domestic and international economic conditions
  • Harvest yields and their impact
  • Winery financial performance
  • Bottle pricing decisions
  • Bulk import activity
  • The 5th Column (Web 2.0, CRM, DtC Sales, Social Media, 3rd-Party Marketers, Compliance)

The complete Silicon Valley Wine Report 2013 Wine Industry Report will be available for viewing on SVB.com after the webinar.

Join Us On Twitter:
Follow Rob (@SVBWine) and Paul (@pmabray) on Twitter and join the conversation before, during, and after the webinar by using #SVBWine.

Register Now: http://www.svb.com/wine-report/


Silicon Valley Bank’s UK Branch Opens for Business
22 June, 2012

The Only Global Bank Dedicated to the Innovation Sector Will Provide Full UK Commercial Banking Services

LONDON and SANTA CLARA, Calif. — June 11, 2012 —Silicon Valley Bank, financial partner to the technology, life science, cleantech, private equity and venture capital industries, opened a full service commercial banking branch in London today to serve both local and international businesses. The first US bank to open a commercial banking branch in the UK in several years, Silicon Valley Bank is offering a full suite of products and services to innovation businesses in the UK, including current and deposit accounts, loans, cash management services, trade finance and foreign exchange.

Commenting on the launch, Greg Becker, CEO and President of Silicon Valley Bank, today said: “The opening of a Silicon Valley Bank branch in London signals a significant step in the evolution of the technology sector in the UK at a time when there is strong government support for a thriving community of local innovation businesses. The UK branch opening is a key milestone for us and, more significantly, an example of how important high-growth technology, life science and cleantech businesses and their investors are to the global economy. Our clients are doing remarkable things. We are excited to be a part of their success and thrilled to be open for business in the UK.”

Having banked some of the most successful and well-known technology brands in the world, including Cisco, Evernote, Mindspeed, Mozilla and Pinterest as well as some of the top investors in the sector including NEA, Sequoia Capital and Silver Lake, Silicon Valley Bank is a crucial part of the innovation ecosystem. For three decades in the US market, it has helped thousands of companies to be successful, from the earliest startups to large public companies. In the US, 50% of the venture capital-backed technology and life science companies work with Silicon Valley Bank.

In recent years, SVB Financial Group, the parent company of Silicon Valley Bank, has expanded its global footprint and opened offices in the UK, Israel, India and China where, later this year with Shanghai Pudong Development Bank, it is expected to open the first joint venture bank in China since 1997. In contrast to much of the global banking market, Silicon Valley Bank delivered record results for its fiscal year 2011 with all-time high loan and deposit balances, net income and earnings per share, as well as a strong balance sheet.

Phil Cox, Head of UK, Israel and India for Silicon Valley Bank, added: “Silicon Valley Bank’s offering is unique in the UK. As a sector-focused organisation, we are highly specialised in our approach, fast-paced, and consider our deep expertise, dedication to the innovation space and unrivalled network of relationship contacts around the world to be clear differentiators. We have seen a marked shift in recent years in our chosen niche industries’ activity within the UK. The elements of an emerging and effective technology ecosystem are all around us: first class universities, an entrepreneurial and business ownership culture, investors, the emergence of technology clusters and the support for the sector within the UK government are all very positive indicators. Building on our credentials of supporting technology firms in the US, we are excited to be able to help the UK’s entrepreneurs meet and exceed their ambitious goals."

Silicon Valley Bank has had a presence in the UK since 2004 through its affiliate SVB Financial Group UK Limited, providing access to financing solutions for some of the highest profile and fastest growing UK-based technology companies: The Foundry, Shazam, Icera, Mimecast and Adconion, for example. Top-tier venture firms such as Index Ventures and Balderton Capital have also chosen to work with Silicon Valley Bank in the UK.

Commenting on the launch, George Osborne, Chancellor of the Exchequer today said: "The news that Silicon Valley Bank is launching a full banking service in London is yet more proof that the UK is fast becoming the technology centre of Europe. The knowledge, expertise and dedication that Silicon Valley Bank brings to the ecosystem is another important step toward our objective to make the UK the best place to start and grow the great technology companies of the future."

Keith Lovell, CFO of Shazam and a Silicon Valley Bank client said: “SVB understands our business and clearly wants us to succeed as much we do – they are a true partner, offering flexible financing solutions, great networking opportunities, excellent and personable client service and an in-depth knowledge of the global innovation ecosystem.”

In announcing the launch of the UK Branch, Silicon Valley Bank will commence opening accounts for technology, life science, cleantech, private equity and venture capital businesses. Visit www.svb.com/ukfor more information. 


About Silicon Valley Bank
Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. Silicon Valley Bank and its affiliates within SVB Financial Group provide industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 27 U.S. offices and seven international operations in China, India, Israel and the UK. (Nasdaq: SIVB) www.svb.com.

Silicon Valley Bank is registered in England and Wales at 41 Lothbury, London, EC2R 7HF, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the Financial Services Authority, FSA reference number 577295. Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.


Silicon Valley Bank Forecasts 7 to 11% Growth in U.S. Fine Wine Sales
27 April, 2012

 

Silicon Valley Bank Forecasts 7 to 11% Growth in U.S. Fine Wine Sales

Company News
April 17, 2012

Annual State of the Wine Industry Reports Increasing Retail Bottle Pricing

ST. HELENA, Calif. –– April 17, 2012 — Silicon Valley Bank, a leading provider of commercial banking services to the wine industry, released its Annual State of the Wine Industry Report for 2012-2013today. The report captures trends and addresses critical issues facing the U.S. wine industry, offering unique data and observations that help wine business owners and managers think critically about their strategies.

Key findings and predictions: See infographic.

• Long-term steady growth in the fine wine business is expected; 7-11% sales growth in 2012
• Wine inventories evolving into a state of shortage that will last for some time domestically
• Increasing prices for grapes and bulk juice as growers finally start to see recovery
• Increasing plantings to feed the looming grape shortage
• Imports taking larger market share in the U.S.
• Bottle price increases, but not a return to prices prior to the recession
• Increasing difficulty for third-party marketers that have sold with a culture of discounting
• Functional evolution of digital solutions, creating a ‘Fifth Column’ sales channel
• Millennials as a fine wine consumers are over-valued in their importance today

Read the full report.

Based on its in-house expertise, ongoing research and a survey of nearly 500 wineries, Silicon Valley Bank continues to believe the fine wine segment is at the beginning of a long-term, steady growth phase, despite current and potential headwinds.

“We believe we are quickly trending to a position that has not yet been experienced in the business: supply will be structurally short for an extended period in all production winery sizes, demand will continue to grow at a little slower pace post-recovery, imports will take a larger share of total domestic sales and make larger inroads into the lower priced wine categories,” said Rob McMillan, founder of Silicon Valley Bank’s Wine Divisionand author of the report. “The biggest obstacles to growth and profitability for wine businesses over the next several years will be finding supply at the right price and quality for a given program. The function of selling wine will now be on par with managing costs, and will become the dominant competitive issue over the next several years.”

McMillan discussed the report and the state of the industry live with Paul Mabray of VinTank and Tony Correia of The Correia Companyat an online event today. A replay of the discussion will be available here by April 20, 2012.

To be added to Silicon Valley Bank’s report distribution list, contact the author, Rob McMillan rmcmillan@svb.com or @SVBWine.


About Silicon Valley Bank’s Wine Division
Silicon Valley Bank is the premier commercial bank for emerging, growth and mature companies in the technology, life science, private equity and premium wine industries. Its Wine Division specializes in commercial banking for premium wineries and vineyards and the industries that support them. SVB has the largest team of commercial bankers dedicated to the wine industry of any bank nationwide. Founded in 1994, SVB’s Wine Division has offices in Napa and Sonoma counties and serves clients in the fine wine producing regions of California, Oregon and Washington. By virtue of its dedication to the wine industry, Silicon Valley Bank is able to support its clients consistently through economic and growth cycles, and offer guidance on many aspects of their business, beyond traditional banking services. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB). More information on the company can be found at www.svb.com.

Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve. SVB Financial Group is also a member of the Federal Reserve.

2012 Wine Report - Wine Prices Set to Rise
17 April, 2012

The market for fine wines is at the beginning of a long-term growth phase, a trend that will benefit many North Coast wineries, according to a forecast issued Tuesday by Silicon Valley Bank.

Sales are expected to grow 7 to 11 percent in 2012. Bottle prices are expected to rise, but not to pre-recession levels, the report said.

Prices for grapes and bulk wine also will rise, and vineyard plantings will increase to deal with the looming grape shortage.

"Imports will take a larger share of total domestic sales," said Rob McMillan, founder of Silicon Valley Bank's Wine Division.

“The biggest obstacles to growth and profitability for wine businesses over the next several years will be finding supply at the right price and quality,” McMillan said in a statement. “The function of selling wine will now be on par with managing costs, and will become the dominant competitive issue over the next several years.”

To read the full report, go to www.svb.com/2012-wine-report

Source - Press Democrat


Online Seminar: Insights from the Silicon Valley Bank 2012-2013 State of the Wine Industry Report
02 April, 2012

Insights from the 2012-2013 State of the Wine Industry Report

Webinar
April 17, 2012

9:30 a.m. - 10:30 a.m. PST

Register Now

Please join Rob McMillan, founder of Silicon Valley Bank's Wine Division, for a webinar as he presents the findings from the 2012 - 2013 State of the Wine Industry Report. Rob will be accompanied by special guest Paul Mabray, Founder and CEO of VinTank.

This annual industry report is based on SVB's in-depth survey of wine industry experts and insiders, third-party research and Rob's unique perspective as a long-time observer of the wine industry.

This presentation will include insight on:

  • Winery inventory positions and consumer demand
  • Potential impacts of the Euro
  • Current economic conditions
  • Legislative issues
  • Winery financial performance
  • Bottle pricing decisions
  • The 5th Column (Web 2.0, CRM, DtC Sales, Social Media, 3rd Party Marketers, Compliance)

The complete 2012 - 2013 State of the Wine Industry Report will be available for viewing on SVB.com after the webinar.

Follow Rob (@SVBWine) and Paul (@pmabray) on Twitter and join the conversation before, during, and after the webinar by using #SVBWine.

Silicon Valley Bank - Wine Division


SVB Financial Group Named One of the Best Companies to Work For by FORTUNE Magazine
16 March, 2012

Company News
January 19, 2012

Silicon Valley Bank Parent Recognized for Fostering Entrepreneurial Culture

SANTA CLARA, Calif. –– January 19, 2012 — SVB Financial Group, the parent company of Silicon Valley Bank, and long term partner to the most innovative companies in the world as well as the premium wine industry, is one of FORTUNE Magazine’s “100 Best Companies to Work For,” according to the list released today. Silicon Valley Bank was recognized for instilling a culture of entrepreneurialism and community involvement while adopting some of the best practices of its innovative clients.

Video: http://www.svb.com/100-best-companies-fortune-magazine/

“We are honored to be included in this prestigious list, and have our amazing employees and clients to thank for this recognition,” said Greg Becker, president and CEO of SVB Financial Group and Silicon Valley Bank. “Our clients are literally changing the world, and it is both our opportunity and challenge to help them accomplish their most ambitious goals. That makes for an exciting and inspiring place to work.”

The full list and related articles will appear in the February 6 issue of FORTUNE and can be accessed now at www.fortune.com/bestcompanies
SVB Financial Group helps entrepreneurs and growing and established companies succeed, offering diversified and complementary financial services to technology, cleantech and life science companies, venture capital and private equity firms and premium wineries. The company is widely recognized for its ability to develop innovative approaches to meet the unique financial needs of its clients. Over nearly three decades, Silicon Valley Bank has become one of the most respected names in the financial services industry and has worked with some of the world's most successful technology and life sciences companies. These companies face unique challenges and require special services, such as finding the right venture capitalist or angel investor, securing capital to support rapid growth, driving overseas expansion, and growing into multi-billion corporations. Silicon Valley Bank’s services are specifically tailored to meet its clients' needs at every stage of corporate growth.

Careers at SVB
To inquire about joining the SVB Financial Group team in one of 33 locations worldwide, please visit www.svb.com/careers.

About SVB Financial Group
For nearly three decades, SVB Financial Group has been dedicated to helping entrepreneurs succeed. A financial holding company serving companies in the technology, life science, cleantech, venture capital, private equity and premium wine industries, SVB Financial Group (Nasdaq: SIVB) operates through 26 U.S. offices and seven international operations. www.svb.com.

Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.

2011-2012 Annual State of the Wine Industry Report Released
27 April, 2011

Silicon Valley Bank (SVB), a leading provider of commercial banking services to the wine industry, released its Annual State of the Wine Industry Report for 2011-2012 via live webinar today. The report captures trends and addresses critical issues facing the U.S. wine industry, offering unique data and observations that help wine business owners and managers think critically about their strategies.

Based on its in-house expertise, ongoing research and a survey of nearly 600 wineries, SVB predicts the fine wine segment is at the beginning of a long-term, steady growth phase. It forecasts 2011 sales growth will be 11 to 15 percent higher year over year and wineries will experience marginally improving profitability.

SVB's forecast is supported by many factors: inventory analysis that suggests supply is more balanced than many believe; improving luxury consumer trends; greater purchasing power among Gen X and Baby Boomers; improving white table cloth-restaurant sales; and stabilization of the national economy, which is leading consumers to trade up and purchase higher-priced bottles.

"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 Silicon Valley Bank's Wine Division  and author of the report. "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."

The report and webinar also point out numerous headwinds that will challenge the industry: geo-political and national economic hurdles; crop prices that have reset lower compared to the fixed costs in producing grapes; continuing distribution challenges; low adoption rates of social media and digital best practices that could make wine businesses more efficient; and threats to direct consumer wine sales from the proposed HR1161 bill being debated in Washington.

McMillan added, "There is still a lot of risk in the business for investors. That said, there are plenty of buyers so we expect the remaining wounded winery players will either recapitalize or sell over the next 18 months."

To be added to Silicon Valley Bank's report distribution list, contact the author, Rob McMillan rmcmillan@svb.com or @SVBWine.

A replay of the webinar will be available by April 29, 2011.


Gary Vaynerchuk sits down with Rob McMillan of Silicon Valley Bank
03 December, 2010

Current State of the West Coast Wine Economy
Gary Vaynerchuk is a master promoter. As of today, he has 854,000 Twitter followers. These are people who WANT to follow him and hear his opinions about wine.
Gary and I sat down for a great discussion about what's happening on the business side of fine wine. Discounting, the growth of Argentinean malbec; Will the fine wine business in the US fall off the edge of a cliff? By tracking inventories of the top Northern California wineries, we at Silicon Valley Bank(SVB) have a unique perspective.

Enjoy the video conversation between @SVBWine and @GaryVee

2010-2011 State of the Wine Industry
10 June, 2010

Each year Silicon Valley Bank authors a State of the Wine Industry and Outlook and discusses emerging trends in the business. The
2010-2011 report continues in this tradition offering the annual forecast, but also drilling down into important industry topics
surrounding affluent consumption, pricing, demographics and consumer wealth retention.

Forecast
We are forecasting improving conditions for the fine wine business.
Positive trends include:
The trading-down will end this year. It’s a completed trend that will gradually reverse on itself.
ˏˏ Growth in $20+ price points will develop momentum and end the year in a range 8%-12% higher year over year.
ˏˏ The U.S. has significant upside growth on a per capita basis, even though it is the largest consumer of wine in the world by volume.
ˏˏ Revenue growth in higher priced wine will outpace the growth rate in lower tier wine segments.
ˏˏ Improving prospects for luxury buying from the affluent
ˏˏ Slight improvement in corporate spending
ˏˏ Building positive momentum in restaurant sales – notably in the white table cloth segment which has been the most impacted in
the correction.
ˏˏ Improved wholesale purchasing as depleted wine is replenished at the distributor level.
ˏˏ Continued measured momentum in the adoption of direct-toconsumer sales tools and strategies.
ˏˏ Larger farming operations should fare well with improved water shipments.

The forecast is predicated on no second dip in the markets which we view as possible but not plausible. We do not believe the improving
consumer climate will catapult fine wine sales to the high point of the past decade anytime soon.

Obstacles to surmount will include:
ˏˏ A continuing and prominent level of discounting into the fall of 2010.
ˏˏ The continued import of bulk wine for domestic labels is a continuing and growing problem for larger growers.
ˏˏ We expect persistent financial and economic hurdles nationally and globally.
ˏˏ Continued downward price pressure in all but those wineries selling on allocation, large scale producers, or established brands
in wide distribution.
ˏˏ Wineries selling sizeable production above $50 will again find 2010-2011 a difficult time.
ˏˏ Producer profitability in family wineries will be negatively impacted again this year as the higher price paid for grapes from purchases made before the crash are sold in a post-crash market that is still discounting.
ˏˏ There is still slightly too much wine at the producer level and distributors have some SKUs that have received no sales attention for some time. Those wines will be moved at deep discounts through the first two thirds of the year to clear the decks.
ˏˏ The impact of higher inventories at the producer level means growers supplying fine wine producers will get less for their grapes on expiring contracts, except in the pinnacle of the quality range.
ˏˏ Commercial Credit is more difficult to come by compared to pre-crash conditions according to survey results.
ˏˏ Distribution is at best ambivalent to small scale wine production.


To learn more about our report, please contact us and we will be happy to discuss any questions you may have.

Sonoma
Dan Aguilar     daguilar@svb.com   707.535.5061
Keith Hanley   khanley@svb.com    707.967.1396
Jed Taborski   jtaborski@svb.com  707.535-5071

Oregon and Washington
Mark Freund    mfreund@svb.com    503.574.3704

Central Coast:
Nancy Palumbo   npalumbo@svb.com   805.529.1762

Napa
Rob McMillan   rmcmillan@svb.com   707.967.1367

Division Manager
Bill Stevens   wstevens@svb.com   707.967.1373

 

The research behind the report
The report is based on in-house expertise and primary research. In January 2010, Silicon Valley Bank surveyed 2,200 wineries throughout
the West Coast and received nearly 500 responses. We have also interviewed numerous people in the trade from retailers to distributors
nationwide. The report also includes findings based on data from Silicon Valley Bank’s Peer Group Analysis program, which contains
information from more than 100 premium wineries obtained over more than a decade.


About Silicon Valley Bank’s Wine Division
Silicon Valley Bank is the premier commercial bank for emerging, growth and mature companies in the technology, life science, private equity
and premium wine industries. Its Wine Division specializes in commercial banking for premium wineries and vineyards and the industries
that support them. SVB has the largest team of commercial bankers dedicated to the wine industry of any bank nationwide. Founded in
1994, Silicon Valley Bank’s Wine Division has offices in Napa and Sonoma counties and serves clients in Napa, Sonoma, the Central Coast
of California, Oregon and Washington. By virtue of its dedication to the wine industry, Silicon Valley Bank is able to support its clients
consistently through economic and growth cycles, and offer counsel on many aspects of their business, beyond traditional banking services.
Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB), with SVB Analytics, SVB Capital,
SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com.


About SVB Financial Group
For 25 years, SVB Financial Group and its subsidiaries, including Silicon Valley Bank, have been dedicated to helping entrepreneurs
succeed. SVB Financial Group is a financial holding company that serves companies in the technology, life science, venture capital/private
equity and premium wine industries. Offering diversified financial services through Silicon Valley Bank, SVB Analytics, SVB Capital, SVB
Global and SVB Private Client Services, SVB Financial Group provides clients with commercial, investment, international and private
banking services. The company also offers funds management, broker-dealer transactions and asset management, as well as the added value of its knowledge and networks worldwide. Headquartered in Santa Clara, Calif., SVB Financial Group (Nasdaq: SIVB) operates through
26 offices in the U.S. and international operations in China, India, Israel and the United Kingdom. More information on the company
can be found at www.svb.com.

The research behind the report
The report is based on in-house expertise and primary research. In January 2010, Silicon Valley Bank surveyed 2,200 wineries throughout
the West Coast and received nearly 500 responses. We have also interviewed numerous people in the trade from retailers to distributors
nationwide. The report also includes findings based on data from Silicon Valley Bank’s Peer Group Analysis program, which contains
information from more than 100 premium wineries obtained over more than a decade.
About Silicon Valley Bank’s Wine Division
Silicon Valley Bank is the premier commercial bank for emerging, growth and mature companies in the technology, life science, private equity
and premium wine industries. Its Wine Division specializes in commercial banking for premium wineries and vineyards and the industries
that support them. SVB has the largest team of commercial bankers dedicated to the wine industry of any bank nationwide. Founded in
1994, Silicon Valley Bank’s Wine Division has offices in Napa and Sonoma counties and serves clients in Napa, Sonoma, the Central Coast
of California, Oregon and Washington. By virtue of its dedication to the wine industry, Silicon Valley Bank is able to support its clients
consistently through economic and growth cycles, and offer counsel on many aspects of their business, beyond traditional banking services.
Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB), with SVB Analytics, SVB Capital,
SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com.
About SVB Financial Group
For 25 years, SVB Financial Group and its subsidiaries, including Silicon Valley Bank, have been dedicated to helping entrepreneurs
succeed. SVB Financial Group is a financial holding company that serves companies in the technology, life science, venture capital/private
equity and premium wine industries. Offering diversified financial services through Silicon Valley Bank, SVB Analytics, SVB Capital, SVB
Global and SVB Private Client Services, SVB Financial Group provides clients with commercial, investment, international and private
banking services. The company also offers funds management, broker-dealer transactions and asset management, as well as the added value
of its knowledge and networks worldwide. Headquartered in Santa Clara, Calif., SVB Financial Group (Nasdaq: SIVB) operates through
26 offices in the U.S. and international operations in China, India, Israel and the United Kingdom. More information on the company
can be found at www.svb.com.
Title Name Email Phone
Division Relationship Mgr - Founder, Wine Division Rob McMillan rmcmillan@svb.com 707-967-1367
Wine Division Manager Bill Stevens wstevens@svb.com 707-967-1373
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State of the Wine Industry 2018


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Rob McMillan, founder of Silicon Valley Bank’s Wine Division, writes one of the wine industry’s most authoritative annual reports that assesses current conditions and provides a unique forecast based on a survey of more than 500 wineries.