VALLEY VINEYARDS FMAIL TRIAL

Our goal is to create many more engaged wine enthusiasts as stockholders, club members and brand champions to continue to deepen our relationships with restaurants and retailers in that region. We established more than an Oregon outpost as we have licensed a micro-winery with its unique privileges achieving local wine lover interest in their own region and as well as offering wines they can’t grow, our cool climate Pinot Noirs. The Sacramento area approximates the wine consumer market size of Oregon, is winery oriented, one of Oregon’s larger tourist sources, where my Mom was raised and lives and where my brother has a unique development in the nearby, engaged community of Folsom.įolsom had an important history in wine and vines which was lost to the gold dredges of the early 1900s.and a unique wine brand – Natoma – waiting to be revived.

VALLEY VINEYARDS FMAIL TRIAL

JB: We wanted to trial our first prototype outside our current sphere of influence where 70% of our club members and 60% of our stockholders are within an hour’s drive, but also outside our state in another major wine market. What made you pick Folsom as your first location? What are you trying to accomplish with these outposts? Where will the next one be and how many do you anticipate having? This is essentially a tasting room and retail wine store outside of your operating area in the Willamette Valley. JM: Several years ago, WVV pioneered the “Outpost” concept. June 2020 Photo courtesy Andrea Johnson/Willamette Valley Vineyard In my opinion, if you applied an average industry multiple to that EBITDA, the computed company value is presently greater than the current market cap.īernau Estate Facility Under Construction and Surrounding Vineyard.

The common shares (NASDAQ Listing WVVI) do not have a dividend but benefit from the growth in retained earnings and value of the business. It can be converted to a wine purchase credit equivalent to 115% of the dividend amount. The preferred shares (NASDAQ Listing WVVIP) have 22 cents per share annual dividend. Among the most fun activities we have with our stockholders includes planting vines together, harvesting grapes and educational blending experiences. Advance notice of the availability of limited production lots.

The current shareholder benefits include: 25% discount on wine purchases made directly, exclusive events, priority use of facilities, special facilities, complimentary private tours and wine tastings. I believe we are doing something for the first time in a public stock offering, qualifying applicants’ subscriptions for stock and selecting those to be issued shares based upon their commitment to support their investment by becoming a wine club member or converting their annual dividend to a wine credit. We will do our best to assemble a group of owners that will propel their company forward in creating greater shareholder value. JB: We are simply organizing an affinity group with a serious investment offering a fair return and an investor opportunity for capital growth. How important have those fringe benefits been to attracting growth capital? What do you get for being a shareholder in WVV? JM: Shareholders get preferential pricing on purchased wines as well as other benefits. We don’t know how much in purchases they account for in restaurants, grocery or wine shops, but we do know they purchase WVV wines there as well. In 2019, they accounted for 25% of our direct sales or approximately $2 million. About 3,000 club members also own preferred stock.įrom 2015-2018 we raised $20 million in preferred stock sales to fund our Oregon Estates Vineyards projects with the cost of the dividends being fully covered by the direct purchases of these preferred stockholders. Many common stockholders hold their stock in “street name,” so we don’t have an exact number.

JB: There are 14,400 wine club members and about 16,000 stockholders. How many members does the wine club have? How many of those are shareholders? JM: Most wineries have “wine clubs,” but in WVV’s case wine club members are likely to be stock holders also.

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