SAN FRANCISCO, Dec. 7, 2012 /PRNewswire/ -- U.S. winery sales have expanded solidly in recent years, and while prospects for the future are good, there are challenges on the horizon, says a new report on U.S. wineries issued today by BMO Harris Bank.
"Our wine industry customers are cautiously optimistic about their prospects for continued growth," said Bill Bishop, Managing Director, San Francisco office, BMO Harris Bank. "A depreciated U.S. dollar, an aging population and the potential for favorable regulatory environment all contribute to a positive outlook."
"Supply conditions have become more supportive for U.S. wineries," said Aaron Goertzen, Economist, BMO Capital Markets. "Industry reports suggest that the all-important California harvest and grape crush was up more than 10 per cent from last year. A strong 2012 crop is a welcome development, as grape prices had been on the rise after a late-spring frost weakened last year's crop."
Mr. Goertzen also noted that with tough weather conditions wreaking havoc on many European wine producers in 2012, U.S. producers stand to benefit. "The 2012 European grape harvest is expected to be the smallest in decades. With affected countries accounting for around half of global wine production, this should divert a significant amount of demand toward U.S. substitutes."
The report did note some challenges for U.S. wineries, including intensifying competition and a chronic global oversupply that is holding prices down.
To access the report, go to https://resourcecenter.bmoharris.com/content/us-wineries-robust-growth-complex-outlook?free.
About BMO Harris Bank
BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. BMO Harris Bank provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank(SM) is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and approximately $554 million in assets (as of the third quarter, 2012).
SOURCE BMO Harris Bank