The coming year is expected to bring good news to the U.S. wine industry, even as aging baby boomers present a question mark for future demand, according to a new report.
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Sales growth in fine wines is expected to increase for the first time after three years of declines as overall demand for wine rises, according to a report from Silicon Valley Bank, which provides commercial banking services to wineries and vineyards.
Fine wine sales are expected to rise 6 to 10 percent, the report said. Luxury wines and those wines priced between $10 and $18 are expected to see the biggest growth in sales.
Currently, inventory is balanced after two extremely strong harvests. When there is excess supply, distributors ask for discounts.
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This positive news comes after a year that the bank called "just OK" due to a lower rate of growth and no improvement in profitability.
