Silicon Valley Bank (SIVB) Predicts Sales Growth in 2010 Fine Wine Sales

November 18, 2009 11:04 AM EST

Silicon Valley Bank, a provider of commercial banking services to the wine industry, released preliminary findings for its annual State of the Wine Industry Report for 2010-2011 today. Based on in-house expertise and ongoing research among West Coast wineries, the report reiterates the prior prediction that the market will be slow to fully recover, predicts year over year sales declines for calendar year 2009, but also forecasts modest growth at the producer level in 2010. The growth prediction is tempered by observations of continuing economic softness and demographic shifts that are creating headwinds against a quick return to the business conditions that were considered normal prior to Q3 2008.

Early reports for Q4 2009 sales suggest improvement over the same period in 2008, an expected down year for the full year 2009, but positive growth in the fine wine business in 2010. However, the report continues, true recovery will take time due to lasting, negative economic changes in housing, consumer wealth, consumer credit, business spending and restaurant sales.

Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB), with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services.

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