Articles Tagged silicon valley bank

Boomers And Busts: Sobering News For The U.S. Wine Business in 2013?

Vinted on February 12, 2013 binned in best of, commentary, wine news

Anyone remember back in 2011, when we talked about the fact that Boomers – who by and large account for the vast majority of current wine sales – wouldn’t be around forever, and so the wine biz really needed to get off of its duff and start thinking about how it would court Gen X and Millenial buyers?

Well, I’ve got some bad news for those who’ve been ignoring that advice.

In the 2013 incarnation of Silicon Valley Bank’s annual State Of The Wine Industry Report presentation, a round-table style discussion between author Rob McMillan (from SVB’s wine division), Paul Mabray of VinTank, Tony Correia of The Correia Company and MJ Dale of KLH Consulting, who discussed the results of the report live in mid-January 2013. During the discussion (uber-interesting for wine geeks and insiders, probably not so much for normal people), McMillan (who is a nice and interesting guy, by the way, something I found out when I had dinner with him at Nickel & Nickel) discussed the sobering fact that the exit of Boomers from the wine market will be a potentially enormous blow to wine sales, and that the Millennial generation requires focus to help fill the expected gap.

To ease in the understanding of this, I’ve taken a graph from the SVB report and “enhanced” it so that the implications are more, well… transparent (click to “embiggen”):

In other words, Boomers don’t just exit the wine market “feet first” (though many, hopefully, will continue to love wine and keep on buying it until they shuffle off this mortal coil); they exit it in droves when they retire. The message is this: if you’re a wine producer who hasn’t been courting younger generations as well as Boomers (And as we’ll see in a minute or two, chances are good that you haven’t), you ought to be crapping a brick right about now…

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Are EU Imports Poised To Kick U.S. Wine Biz Butt In The Near Future?

Vinted on April 24, 2012 binned in wine news

Last week, Silicon Valley Bank and Vintank teamed up to present a rather well-researched and thorough look at what the wine industry has in store for itself in the near future.

Predictions are, of course, only for the exceedingly brave (or exceedingly foolish – or both), since they’re ripe for the 20/20 vision sniper cross hairs of retrospective perspective later. But I tend to admire the cojones it takes to put your thoughts out on a public limb, opening it up for those who would use them as a perch for even greater ideas, not to mention as fodder at which any thick-skulled woodpeckers can take pot shots. An example: the bold predictions that Vintank made about the wine biz for 2011, many of which didn’t materialize in 2011 but are starting to show signs of instantiating themselves in early 2012 – in fact, the SVB report bolsters several of those bold Vintank 2011 predictions (the growth of direct wine sales, for example, in what they term “the 5th Column), for those who have more pachyderm-like memories (and are keeping score). Vintank: 1; Woodpeckers: 0?

You can download the report, its summary slides, and an even higher-level infographic summary at SVBs website.

While the results (understandably, given the source) have a serious CA-focus, there are tidbits therein that the worldwide wine industry can take away from it.

For example, U.S. wine producers may be set for shorter supply, increased prices, and a big challenge from EU country wine imports.

Not exactly good news for the U.S. wine biz…

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