Winebusiness.com - Homepage for the Wine Industry

PR: BMO Harris Bank Issues Report on U.S. Wineries


Date: 12/07/12

Cautious Optimism the Mood Among Wine Producers

Press Release - U.S. winery sales have expanded solidly in recent years, and while prospects for the future are good, there are challenges on the horizon, says a new report on U.S. wineries issued today by BMO Harris Bank. 

"Our wine industry customers are cautiously optimistic about their prospects for continued growth," said Bill Bishop, Managing Director, San Francisco office, BMO Harris Bank. "A depreciated U.S. dollar, an aging population and the potential for favorable regulatory environment all contribute to a positive outlook."

"Supply conditions have become more supportive for U.S. wineries, " said Aaron Goertzen, Economist, BMO Capital Markets. "Industry reports suggest that the all-important California harvest and grape crush was up more than 10 per cent from last year. A strong 2012 crop is a welcome development, as grape prices had been on the rise after a late- spring frost weakened last year’s crop.”

Mr. Goertzen also noted that with tough weather conditions wreaking havoc on many European wine producers in 2012, U.S. producers stand to benefit. “The 2012 European grape harvest is expected to be the smallest in decades. With affected countries accounting for around half of global wine production, this should divert a significant amount of demand toward U.S. substitutes.”

The report did note some challenges for U.S. wineries, including intensifying competition and a chronic global oversupply that is holding prices down.

To access the report, go to https://resourcecenter.bmoharris.com/content/us-wineries-robust-growth-complex-outlook?free.

###

About BMO Harris Bank

BMO Harris Bank’s commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. BMO Harris Bank provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and approximately $554 million in assets (as of the third quarter, 2012).

Subscribe to Daily news Email

FREE Wine Business Daily News delivers the industry's top stories emailed to you from our editorial team.

most popular daily news links

latest used barrels

- used barrels  •  yesterday at 6:26PM PDT
- used barrels  •  yesterday at 6:26PM PDT
- used barrels  •  Jul 25, 2014 at 2:10PM PDT
- used barrels  •  Jul 25, 2014 at 9:27AM PDT
- used barrels  •  Jul 25, 2014 at 8:56AM PDT

latest real estate

- real estate  •  Jul 24, 2014 at 12:14PM PDT
- real estate  •  Jul 24, 2014 at 11:58AM PDT
- real estate  •  Jul 24, 2014 at 11:40AM PDT
- real estate  •  Jul 21, 2014 at 10:11AM PDT
- real estate  •  Jul 20, 2014 at 5:53PM PDT

latest used equipment

- used equipment  •  yesterday at 1:35PM PDT
- used equipment  •  yesterday at 1:35PM PDT
- used equipment  •  Jul 25, 2014 at 3:38PM PDT
- used equipment  •  Jul 25, 2014 at 3:38PM PDT

industry events

Aug 1
CA
Search Events:

Copyright© 1994-2014 by Wine Communications Group. All Rights Reserved. Copyright protection extends to all written material, graphics, backgrounds and layouts. None of this material may be reproduced for any reason without written permission of the Publisher. Wine Business Insider, Wine Business Monthly, Grower & Cellar News and Wine Market News are all trademarks of Wine Communications Group and will be protected to the fullest extent of the law.