Wineries Learn Tough Lessons In Tough Times
on 22/11/10 at 12:15 pmWine
One of the key challenges wineries have faced during the recession and retrenchment of the past two years, aside from maintaining financing, is ensuring cash flows. A buck in the hand has been worth two from the bank, thanks to conservative lending practices prompting wineries to lower prices on product and reduce margins in order to bolster balance sheets. Some operations have given up, and more may follow.
The latest financial results from Oregon’s 130,000-case Willamette Valley Vineyards Inc. (WVV) — one of the few publicly traded wineries — tell a tale common to many Pacific Northwest vintners. Case revenue increased to $4.6 million in the quarter ended Sept. 30, 2010, up 5.5% over the same quarter a year earlier. Year-to-date revenues rose to $12.25 million, 1.6% over 2009.