Issue link: http://winesandvines.uberflip.com/i/80303
CO VER S T OR Y 70% 60% 50% 40% 30% 20% 10% 0% -10 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 59% 57% 55% 53% 51% 49% 47% 45% As part of its effort to cater to the wine industry, Silicon Valley Bank has a staff sommelier and decades of industry data for clients to use as benchmarks. This chart shows 10 years of sales in the fine wine business including gross margin and pretax profit, from 2002 to first quarter 2012. Specialty-focused banks compete on their domain expertise and skills. SVB maintains a sommelier and a concierge, promotes its clients' wines at events throughout the Bay Area and provides advice and benchmarking tools that will allow you to see how your financial met- rics stack up against your anonymized peer group over decades. This may help you run your business, but more im- portantly it will ensure the bank under- stands your business. That understanding can go a long way when things change from the expectations enshrined in your loan documents. Regional banks: Regional banks often have dedicated teams for different cat- egories, and wine is one that continues to earn banks' attention. Banks like Union Bank, Umpqua Bank and Com- erica have wine focuses, though the size and knowledge of their wine teams may vary. Umpqua has nine people on its wine team. Cherokee_Nov05.qxt 9/19/05 10:52 AM Page 1 As with any bank, you must understand with whom you are dealing. Who is mak- ing the decisions that affect your loan, and what expertise do they have in your area of need? You are entitled to ask, and the burden to do so rests with you. Who is making the decisions that affect your loan, and what expertise do they have in your area of need? You are entitled to ask, and the burden to do so rests with you. Big banks: Large national and interna- tional banks such as Wells Fargo and Bank of America have shown varying levels of dedication to the wine industry over time and generally play an important role in wine lending. As these banks are larger, they tend to focus on larger loans at a corporate or national level. hauling precious cargo • 24 hour dispatch • Competitive rates • Personalized Service • Radio/Cell phone equipped • State-of-the-art equipment • Maximum payload capacity • Over 30 years in operation • References available • Fleet of over 200 trucks including Wine Tanks and Dry Freight Vans CHEROKEE FREIGHT LINES 5463 Cherokee Road • Stockton, CA 95215 Telephone: 209.931.3570 • or visit our website:www.gocfl.com 30 WINES & VINES SEPTEMBER 2012 Gross Margin WINE INDUS TR Y FINANCE Sales Growth & Percent Profit