10 foreclosed vineyards and wineries are just the beginning of the carnage in Napa Valley.
Since the recession, U.S. wine sales are down 3.3 per cent. High-end wine sales are down are down 15%.
If banks knew anything about wine valuations, hundreds of California wine labels could be in foreclosure proceedings, says wine blogger Alder Yarrow.
“You’ve got maybe hundreds of these little virtual wine labels running out of custom crush outfits. They’ve got two or three vintages in really expensive oak (and another vintage sitting around in case boxes) where they’ve paid $6000 a ton for some fancy big name Pinot fruit, a bunch of really expensive corks and heavy glass bottles, and a couple of years ago they would have been looking forward to selling 4000 cases of their tricked up wines for $60 a bottle, no problem. That’s the financial picture they took to the bank in 2008 to get another loan to buy barrels and more fruit. But now, their wine isn’t worth shit. They’ll be lucky to sell it at all, let alone for a discount. From a balance sheet perspective, there’s a single word that describes this situation: fucked.”
For the wine lovers it’s a great time to buy wine at discount or why not your own vineyard.
Business Insider Emails & Alerts
Site highlights each day to your inbox.