SVB estimates 524 wineries to change hands
St. Helena, Calif.—Based on a survey of wineries in the West Coast, Silicon Valley Bank is reporting that 524 wineries in Washington, Oregon and California are “strongly considering a sale, or are hopeful a sale will take place.”
The bank arrived at that figure by extrapolating results from a survey that found 10.5% of wineries surveyed (or 68 of 646) reported they were hoping to sell or strongly considering such a move. Calculating that there are 4,989 wineries on the West Coast, based on figures from statewide winery associations, the bank applied its 10.5% figure to arrive at the 524 total for wineries looking to sell.
“If you’re in the market for a winery as a commercial entity or a family business, there’s never been a better time,” said Rob McMillan, founder of Silicon Valley Bank’s Wine Division and the report’s author. “The current pace of ownership transitions in the last—and the next—few years is the highest the West Coast wine industry has ever seen.”
According to the report, Washington wineries are more likely to be open to an acquisition offer in the near term, as are wineries producing wines with lower average price per bottle. The wineries considering a sale are roughly split between commercial wineries and lifestyle properties. Download the complete report here: svb.com