Silicon Valley Bank’s sudden closure leaves many wine-related companies with unanswered questions.
By Jeff Siegel
Earlier today, we all found out that Silicon Valley Bank, the 16th largest bank in the country, had crashed — almost overnight — as losses from its tech lending apparently overwhelmed its bottom line and sent stock markets falling around the world. Friday’s SVB failure sent shock waves through the wine industry, with speculation about what the financial institution’s closure by state and federal banking regulators will mean to grape and bulk wine prices, as well as its deep ties to Napa and other winegrowing regions.
The reason for the speculation? There was little known for certain after California banking authorities took possession of the bank on Friday and appointed the FDIC as receiver. The bank’s branches, including its Napa location (headquarters for its premium wine division), remained closed but are scheduled to reopen on Monday under federal control.
“You aren’t the only one asking,” said Rob McMillan, who runs the bank’s wine division. “But no, there is nothing to say outside of sending you the FDIC announcement. Even that leaves more questions than answers.”
Wine Industry Advisor will continue to monitor this story and report new developments as they occur.
_____________________________________________________________________
Jeff Siegel
Jeff Siegel is an award-winning wine writer, as well as the co-founder and former president of Drink Local Wine, the first locavore wine movement. He has taught wine, beer, spirits, and beverage management at El Centro College and the Cordon Bleu in Dallas. He has written seven books, including “The Wine Curmudgeon’s Guide to Cheap Wine.”
