Issue link: http://winesandvines.uberflip.com/i/892087
November 2017 WINES&VINES 33 2017 SUPPLIER SURVEY flush sales and self-styled ave- nues to reach consumers. "Credit is readily available to wineries that are cash flowing. I am not seeing asset-based lend- ers like I have seen in the past. This makes it challenging for wineries that are struggling to obtain credit," Clark from Live Oak Bank reported. "We are see- ing unique equity arrangements fulfilling this financing need." This year, 54% of suppliers responding to Wines & Vines' survey said they plan to raise their prices in the coming year, while just 3% said prices will go down. Jostran Lamontagne, direc- tor of stainless-steel tank pro- ducer La Garde, advised buyers that when making large pur- chases, it is better to consider long-term planning than short- term requirements. "Probably the most important thing you should look at is not only what you will spend for tanks this year, but what is the investment you want to make," he said, adding this consider- ation is especially important for those looking to build or add winery extensions in the future. "If you can produce more wine per year, then you save money, and you make more profit." Like other tank producers, La Garde is subject to the whims of the commodity market. To stay current with the fluctuating price of stainless steel as well as ex- change rates, Lamontagne up- dates pricing to reflect raw materials costs every month. "We want to allow our custom- ers to benefit from the exchange rate, and we look for the best price for stainless," he added. THE YEAR AHEAD As the year draws to a close, more than three-quarters of wine industry suppliers expect the wine sector to grow in the next 12 months—albeit slowly. Businesses familiar with winery plans say there are many new wineries and brands AVAILABILITY OF FINANCING Which statement best describes your clients' ability to find cash or financing to pay for your products and services? 80% 70% 60% 50% 40% 30% 20% 10% 0 Getting Better Staying the Same Getting Worse 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 KEY POINTS Companies that provide products and services to vineyards and wineries weighed in on trends affecting the wine business this year. Wineries are placing more emphasis on direct-to-consumer sales, which reap larger margins, and taking more risks with packaging. Lending rates are still low for companies looking to borrow, but businesses must be cash-positive in order to be approved.