January 18, 2017-

Wine Industry Report Addresses Current Conditions and Future Views on Industry

Today Virtual Vines participated in Silicon Valley Bank’s annual wine  Industry market update.  The web based call was hosted by Rob McMillan, EVP & founder of Silicon Valley Bank’s Wine Division and an expert panel including Amy Hoopes, President, Wente Vineyards, Dan Leese, President, V2 Wine Group and Paul Mabray, VP, Social Media & Reputation, Avero, LLC.  These industry leaders discussed and presented findings from the 2017 State of the Wine Industry Report.  This annual 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.
Some Compelling Updates for the DTC Segment in 2016:

  • DTC Business up 18% over last year ($2.33B)
  • Gen X and Millennials outpaced Baby Boomers in growth over last year- Gen X will surpass Baby Boomers by 2021
  • Craft Beer and Spirits gaining momentum with GenX and Millennials giving wineries more competition
  • Premium Wine sales are slowly increasing with Millennials representing the highest growth segment
  • Blends are becoming more interesting to the younger consumers making marketing a brand vs a varietal a more effective strategy
  • Mergers and acquisitions were prevalent in 2016 and will continue to be in 2017 causing potential disruption in the competitive market
  • Continued regulations on tourism affecting smaller wineries ability to effectively sell in DTC space

Download the full report from SVB here: SVB 2017Report