Ownership Transitions in the Wine Industry 2014
There is currently a strong marketplace for small and mid-sized wineries, according to a recent report by the Silicon Valley Bank Wine Division. Compared with other time periods, the report compiled by Rob McMillan says that more winery sales and ownership transitions are taking place.
Questions were directed to owners and operators of more than 646 wineries located in California, Oregon and Washington. Their responses indicated that one in ten winery owners are strongly considering a sale within the next five years. Furthermore, the findings compiled in the May 2014 report showed that one in three are open to a sale under the right circumstances.
The report points out the following:
• Forty-eight percent of the predicted winery sales will occur in businesses that produce more than 5,000 cases annually
• Far from being a weakness, transitions and sales in any industry are a sign of current and future strength
• Sales of businesses refresh the lifeblood of the industry, and new business leaders enter with new focus, direction, and solutions to problems
A study conducted in 2008, Ownership Transitions in the Wine Industry, found that fifty-one percent of wineries were planning to go through a change in control within 10 years and fewer than half of the owners had begun some form of estate planning. The findings of that very same study indicated the currently-strong marketplace for small- and mid-sized wineries
Although a small slowdown is expected, according to the newest report the opportunity for those looking to purchase and own a winery will increase drastically over the next five years. To read the full report, go to www.svb.com/Blogs/Rob_McMillan/Ownership_Transitions_in_the_Wine_Industry_2014.
With input and guidance from professionals in the industry such as the team at Pacifica Wine Division, a record number of individuals will have the chance to acquire labels and maintain a productive capacity with their newly-acquired winery business.
As individuals search for their place in the fine wine industry and inquire about the possibility of owning and operating a vineyard and winery, they often need a helping hand. The experienced professionals at Pacifica Wine Division are available to review and show properties and businesses. Give Pacifica a call at (805) 237-4040 or stop by 504 First St # A in Paso Robles, CA.