Bloomberg News is reporting that as many as 10 Napa Valley wineries and vineyards will likely be sold in distressed sales or worse, fall to foreclosures over the next two years.
The findings are based on a study by the Silicon Valley Bank, which says Napa Valley land values have dropped 15 percent since 2007. About 7 percent of the survey respondents said their finances are "very weak" or on "life support." Still no vineyards have fallen into foreclosure yet.
The bank has more than 250 vintners as clients who are calling their current economic situation the worst they have seen in 20 years. That's bad news for the new kids on the block.
Bill Stevens, the manager of the Silicon Valley Bank's wine division, says "anybody who was late to the party won’t have staying power.”