SVB PowerPoint PresentationState of the Wine Industry Wednesday, January 13, 2021 9:00 a.m. – 10:00 a.m. PST
Part 1
Eric McLaughlin CEO Metis
Paul Mabray CEO Pix.wine
Featured Speakers
Source: Nielsen. Rolling 52 Weeks 4
Long Term Off-Premise Sales Channel Shift. NOT Demand Change
$12.0
$13.0
$14.0
$15.0
$16.0
$17.0
$18.0
155.0
160.0
165.0
170.0
175.0
180.0
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Pre-COVID
2020 On-Premise Alcohol Channel Shift 0.6% 0.4%
-27.7%
Tasting Room 28%
Wine Club 23%
Mailing List 5%
Tasting Room 27%
Wine Club 22%
Mailing List 3%
Growth in
Average Order
Club -5.18% -8.98% 184.68$ 192.38$ 4.17% POS/Tasting Room -37.43% -42.31% 66.35$ 71.96$ 8.46% Ecommerce 153.04% 190.67% 280.50$ 244.19$ -12.95%
Growth in Direct Channels
-8.98%
-42.31%
190.67%
Average
$ 184.68
$ 192.38
4.17%
$ 66.35
$ 71.96
8.46%
$ 280.50
$ 244.19
-12.95%
$ (23)
Ecommerce
0
600,000
1,200,000
1,800,000
2,400,000
3,000,000
Bu ye
None 48%
Full-Time 16%
Part-Time 30%
Other 6%
12
Do You Have a Data Analytics Person to Review Your Consumer Data?
Source: SVB Winery Conditions Survey
Harvest
14
2% 7%
At or slightly below record high yields
Better than historical average yields
Close to average historical yields
Weaker than historical average yields
At or near record low yields
2%
2%
2%
4%
9%
13%
10%
13%
20%
25%
2%
2%
4%
8%
10%
24%
2%
18%
19%
41%
24%
6%
20%
46%
33%
22%
25%
3%
29%
33%
47%
27%
9%
38%
38%
76%
38%
47%
31%
33%
40%
38%
39%
54%
37%
22%
16%
64%
25%
10%
44%
13%
23%
8%
36%
35%
52%
8%
18%
4%
51%
6%
P A S O R O B L E S A V A
L O D I / C L A R K S B U R G , C A
T E X A S
S A N L U I S O B I S P O , C A
S A N T A C R U Z , M O N T E R E Y , S A N T A C L A R A , C A
N E W Y O R K
S O N O M A C O U N T Y , C A
N A P A C O U N T Y , C A
N O R T H E R N O R E G O N
W A S H I N G T O N
O T H E R
S A N T A B A R B A R A , C A
V I R G I N I A
S A N D I E G O , T E M E C U L A & L O S A N G E L E S , C A
S I E R R A F O O T H I L L S , C A
Source: SVB Annual Winery Conditions Survey
15
67%
51%
48%
44%
36%
35%
33%
31%
28%
18%
15%
13%
12%
12%
8%
25%
24%
38%
13%
18%
45%
47%
19%
55%
41%
23%
29%
16%
25%
21%
8%
16%
10%
13%
36%
12%
7%
31%
10%
35%
23%
13%
27%
10%
15%
0%
7%
4%
25%
9%
6%
13%
13%
3%
6%
15%
22%
16%
26%
24%
0%
2%
6%
2%
6%
3%
23%
23%
29%
28%
31%
N E W Y O R K
S A N T A B A R B A R A , C A
W A S H I N G T O N
T E X A S
S A N D I E G O , T E M E C U L A & L O S A N G E L E S , C A
O T H E R
S A N L U I S O B I S P O , C A
S I E R R A F O O T H I L L S , C A
P A S O R O B L E S A V A
L O D I / C L A R K S B U R G , C A
S A N T A C R U Z , M O N T E R E Y , S A N T A C L A R A , C A
S O N O M A C O U N T Y , C A
V I R G I N I A
N O R T H E R N O R E G O N
N A P A C O U N T Y , C A
Source: SVB Annual Winery Conditions Survey
Bulk Wine
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
JAN. 2015 JAN. 2016 JAN. 2017 JAN. 2018 JAN. 2019 JAN. 2020
BU LK
G AL
LO NS
A VA
IL AB
Source: Ciatti
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Source: Ciatti
Survey Slides
Source: SVB State of the Industry Survey 2020 20
1st 2nd
3rd 4th
25% 35% 7% 5% 7% 15% 7%
23%
26%
Thoughts on SRP Change
price increases on most of my wines
0%
increases on most of my wines
6%
Small Increase: I can take some small price increases on selective
SKUs 30%
Hold Prices: I can pretty much hold my shelf price
on average 51%
Small Decrease: I need to give some small price reductions on selective
SKUs 8%
4%
reductions on most of my wines
1%
Source: SVB State of the Industry Survey 2020
Thank You
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Slide Number 1
Slide Number 2
Slide Number 3
2020 Off-Premise Volume & Value Changes
2020 On-Premise Alcohol Channel Shift
Average Winery’s Sales Channels in 2020
Growth in Direct Channels
Ecommerce Penetration in Transactions
Do You Have a Data Analytics Person to Review Your Consumer Data?
Slide Number 13
2020 Harvest Quality
Slide Number 16
2020 CA Bulk Wine Balanced by EOY
Slide Number 19
Slide Number 20
Slide Number 21
Slide Number 22
Slide Number 23
Slide Number 24