Silicon Valley Bank’s Wine Division has issued a new study, Ownership Transitions in the Wine Industry 2014, that examines the current historic high numbers of winery sales and transitions. Ten percent of wineries are strongly considering a sale within the next five years, and one in three is open to a sale under the right circumstances. The results underscore the robust marketplace for small- and mid-sized wineries, with more winery sales and ownership transitions today compared to any other period.
Click here to view the SVB Ownership Transitions Report (pdf)
- 10.5 percent 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 percent of wineries are open to a sale under the right circumstances, indicating the industry is partially through the predicted transition.
- The sales activity experienced subsequent to 2008 will continue for at least another five years, and most likely slightly longer.
- The near-term pace of sales likely will slow, but only slightly from that experienced in the past three years.
- Winery sales are expected to be led by smaller wineries, many of whose properties include personal residences, which represent a larger part of assets when compared with larger wineries.
- 48 percent of the predicted winery sales will occur in businesses that produce more than 5,000 cases annually.