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Silicon Valley Bank forecast: Oversupply of premium wine, slower sales growth to spur discount brands

January 14, 2020

The SVB report forecasts sales growth this year for the premium wine segment (over $9-$10 a bottle) will be 3% to 7% by value, down from 4% to 8% predicted for 2019. Actual performance averaged 5.3% in 2018 and 7.2% through September of last year, according to the bank's analysis of financial statements ... A look under the hood at family wineries' fiscal engines shows three-quarters had a good year, with average sales growth by quartile of 3.6%, 11.3% and 22.3%. Yet the lowest-performing quartile of vintners had negative sales growth of 7.8%"