If you are coming to the Napa Valley and want a premium bottle of wine, expect to pay more in 2015. Silicon Valley Bank does an annual wine report and they anticipate premium wine prices will be up 14-18 % this year.
Here are a few excerpts from the Bank’s web page. You can follow this link to see the full report.
SVB’s Annual State of the Wine Industry Report addresses current trends, conditions and future views on wine industry growth, consumer demand trends and winery financial performance.
We expect to see the third consecutive harvest of heavy yield across most appellations.
Sales growth finished strong in 2014 and we are predicting a breakout year of growth in fine wine category -14%-18% ranges in 2015.
While a large supply of wines in cellars could mean depressed pricing, 2015 will be a year of both volume and price increases in the fine wine segment.
Wines priced below $7 to $9 a bottle performed poorly both on and off premise in 2014. This poor performance is expected to continue in 2015.
Silicon Valley Bank is a leader in banking for boutique wineries like most of those in Napa Valley, so its comments primarily reflect their experience. The bank surveyed nearly 600 West Coast wineries and combined it with in-house expertise and ongoing research to create the report. It maintains an extensive compilation of performance of its clients, who admittedly are typically blue-chip wineries.