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OCT OBER NEWS Winery Closing a Sign of the Times B Financial realities reflected in the piecemeal sale of Washington's E.B. Foote urien, Wash.—The recent pledge by the Federal Reserve to keep interest rates low until 2013 may be good news for borrowers, but potential new investors in the wine business continue to encounter financial barriers. A telling example of the challenges facing would-be vintners surfaced ear- lier this year, when Sherrill Miller began selling E.B. Foote Winery in pieces: Pro- spective buyers were unable to secure the financing needed to acquire the suc- cessful business. Miller originally listed the Seattle-area winery for sale at $1.25 million in spring 2010. While credit conditions generally strengthened through 2010, the benefits were largely enjoyed by established busi- nesses with solid balance sheets. Banks were less willing to finance new ventures by untested entrepreneurs. "I probably had eight solid parties that wanted to buy it, but no one could get fi- nancing," Miller said. Miller succeeded eventually in selling the winery piecemeal this past June, garnering what she felt the equipment was worth (about half the cur- rent retail value) but foregoing consider- ation for brand equity and goodwill culti- vated since the winery's launch in 1978. The individual pieces sold in three winesandvines.com Learn more: Search keywords "E. B. Foote Winery." "I probably had eight solid parties that wanted to buy it, but no one could get financing." —Sherrill Miller, E.B. Foote weeks, ending months of uncertainty as potential purchasers of the business sought to secure financing. When Miller and her late husband, Richard Higginbotham, bought E.B. Foote from founder Eugene Foote in 1991, Wash- ington was still struggling to be recognized as a premium wine producer. Now, with an established reputation and 650 winer- ies (according to WinesVinesDATA), there are more brands and sharper competition for shelves and palates. —Peter Mitham Wines & Vines OCTOBeR 2011 17