Silicon Valley Bank’s “Annual State of the Wine Industry Report,” released Tuesday, forecasts the decreasing value of the euro relative to the dollar to bring prices of imported wines down, giving consumers cheaper alternatives to domestic wines, according to the article.
Despite the anticipated shift from domestic wines to imported wines, Rob McMillan, founder of Silicon Valley Bank’s wine division, told Wines & Vines that he expects the domestic wine industry to grow 7 percent to 11 percent, a slight decrease from 2011. About 35 percent of the wineries surveyed said they would raise prices “minimally,” while 30 percent do not plan to change their prices.
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From Wines & Vines:
“Tony Correia, an agricultural property valuation expert, and Paul Mabray, chief strategy officer with VinTank, joined McMillan as speakers during the webinar.
Correia said grape prices and land costs would continue to increase. He noted there’s already some tension between growers looking for the best price in a short market and wineries who are still unable to raise their bottle prices to pre-recession levels.