NAPA,
Calif., Jan. 18, 2024 /PRNewswire/ -- Silicon
Valley Bank (SVB), a division of First Citizens Bank, today
released its 2024 State of the US Wine Industry Report. Widely
regarded as the leading source for market trends in the premium
wine sector, the annual report provides an assessment of the
industry, analysis of current market conditions and forecasts for
the year ahead. The report is based on proprietary research and
survey data collected from more than 500 wineries across the
US.
"Now more than ever, changing market dynamics favor
wineries that adapt to a changing demand environment," said
Rob McMillan, Silicon Valley
Bank Wine Division founder and author of the
report. "Solutions to changing demand should include
collaboration across the industry, but absent that, finding
increased efficiencies in marketing and sales will become critical
for success. Future demand improvement will rely on the industry's
ability to attract new and younger consumers, take market share
from other beverage and cannabis producers, and counter
overproduction that will likely lead to widespread discounting in
out-of-favor brands and price points."
The 2024 report examines the latest consumption, pricing, sales
data, and the most promising wine industry marketing strategies. It
provides an in-depth analysis on the key trends impacting the US
wine industry:
- While full-category wine sales by volume will be down for a
third consecutive year,
- 2023 year-end premium wine sales will likely end with another
year of positive value growth.
- Tasting room visitation was lower in the premium segment in
2023, but improvement is expected in 2024.
- Direct-to-consumer sales will grow again modestly in 2024.
- Conditions for overproduction in the total wine category are
present, but inventory supply is more balanced in the premium
segment.
Silicon Valley Bank will host a live webinar to discuss the
annual report and state of the wine industry today at 9:00 a.m. PST. The panel will include McMillan,
Jennifer Locke, CEO Crimson
Wine Group; Paul Mabray,
Industry Innovator; and Ed Thralls, SVP Professional
Services, Enolytics. Register for the live webinar here. A replay
of the discussion will be available after the event.
Founded in 1994, SVB's Wine Division specializes in commercial
banking for premium wineries and vineyards and the industries that
support them. With the largest team of commercial bankers dedicated
to the wine industry of any bank nationwide, SVB's Wine Division
has offices in Napa, Sonoma and Oregon serving clients in the fine-wine
producing regions of California,
Oregon and Washington.
Read the full 2024 State of the Wine Industry report
here: www.svb.com/trends-insights/reports/wine-report.
About Silicon Valley Bank
Silicon Valley Bank (SVB), a division of First Citizens Bank, is
the bank of some of the world's most innovative companies and
investors. SVB provides commercial and private banking to
individuals and companies in the technology, life science and
healthcare, private equity, venture capital and premium wine
industries. SVB operates in centers of innovation throughout
the United States, serving the
unique needs of its dynamic clients with deep sector expertise,
insights and connections. SVB's parent company, First Citizens
BancShares, Inc. (NASDAQ: FCNCA ), is a top 20 U.S. financial
institution with more than $200
billion in assets. First Citizens Bank, Member FDIC. Learn
more at svb.com
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SOURCE Silicon Valley Bank