Issue link: http://winesandvines.uberflip.com/i/718029
September 2016 WINES&VINES 37 FINANCE MARK BRODY is a banking veteran of 30-plus years who currently over- sees Umpqua Bank's San Francisco Metro Market Commercial Bank- ing Center and leads Umpqua's Wine Specialty Group, which caters to the wine and vineyard industry. Brody has a broad banking background, including time spent at City National Bank, Sanwa Bank California and Bank of America. He was CEO and general manager of Cline Cellars from 2001 to 2003 and founder of the Wine Advisory Group. ADAM BEAK is a managing director in Bank of the West's Commercial Banking Group and head of the Wine & Beverage Group in Napa, Calif. At Bank of the West, Beak developed a wine and agricultural specialist team and increased a loan portfolio from $56 million to more than $1 bil- lion. Beak served as COO/CFO for Heron Wines in San Francisco, Calif., before joining Bank of the West, and he is part owner of 4 Bears Winery in Napa. would impact the industry materially. That said, most seem to feel that some downturn is on the horizon. WB: The recent Brexit vote, needless to say, has had a material impact on the U.S. and world's stock markets and currencies. The main concern I see for the near and poten- tially longer term is the risk of less U.S. wine imports by the UK, as the devaluation of the British pound will cause European wines to become more price acceptable. It will take at least two years plus to imple- ment the exit by the UK from the EU, so EU wines will continue to have a price advan- tage over U.S. wines until and if higher trade tariffs, restrictions are implemented between the UK and the EU. Any closing thoughts or concerns? JH: I personally think 2016 will be a choppy year on a macroeconomic front with anemic economic growth. The indus- try will continue forward until consumer buying habits change, which is really what drives our industry. AB: Consolidation continues among all assets of the wine industry (i.e., distribu- tors, producers and retail) and continues to be a major theme and seems to be pick- ing up momentum in past 12 months— both at the producer level and at the three-tier distributor level. Also, looking across the value chain, the euro exchange rate is leading a number of wine industry suppliers to seek opportunities for additional expo- sure to the U.S., whether through grow- ing their sales organically or through acquisition. MB: Beyond the expectation for a down- turn at some point, the "roller coaster" of grape supply and market demand has cre- ated some dynamic situations. It is key that a given banker understand not just what is flowing through the income state- ment this year but what will happen when the wine from the very short 2015 harvest is sold. Gomberg, Fredrikson & Associates Market Intelligence for the Wine Industry · The Gomberg-Fredrikson Report: Put your business in context with wine industry market trends. · WineData Wine Pricing Report: Make competitive price positioning comparisons. · Distributor Market Service: Gain a competitive advantage by analyzing the wholesale market www.gfawine.com • 707.940.3922 • inquiry@gfawine.com We perform extensive market research and data collection to create the wine industry's leading databases and reports. Our reports reflect real-world factors and provide business leaders consistent information on which to base decisions.