Core Insights - Willamette Valley Vineyards is offering a Preferred Stock Offering to wine enthusiasts, allowing them to purchase shares and become part of the winery's ownership family [1][2][4] Company Overview - Founded in 1983, Willamette Valley Vineyards is recognized as one of Oregon's leading wineries, particularly known for its Pinot Noir and commitment to sustainability [8][10] - The winery operates under a community-funded business model, being one of the few community-owned, publicly traded wineries in the nation [2][8] Investment Opportunity - The introductory price for shares is set at $3.35, with an annual dividend of 6.5% or wine credit with a 15% bonus for early applications [4][5] - The minimum investment is 150 shares ($502.50), while the maximum is 5,000 shares ($16,750) [4] - Share prices will increase to $3.45 on August 1, 2025, and to $3.95 on November 1, 2025, unless sold out earlier [5] Shareholder Benefits - Shareholders receive exclusive benefits, including an annual dividend, discounts on wine releases, and access to special opportunities [3][9] - The winery emphasizes a loyalty-driven approach, aiming to create a community of wine enthusiasts who support the brand [4][6] Growth and Community Impact - The Preferred Stock Offering aims to support the winery's expansion, including its vineyards, tasting rooms, and production facilities [6] - Willamette Valley Vineyards has expanded to include nine tasting rooms across Oregon, Washington, and California, facilitated by stock ownership [10]

Core Viewpoint - Willamette Valley Vineyards, Inc. reported a net loss for the first quarter of 2025, reflecting challenges in national distribution and a significant decrease in sales revenue compared to the previous year [6][5]. Financial Performance - The company generated a loss per common share after preferred dividends of $0.26 for the three months ended March 31, 2025, compared to $0.22 for the same period in 2024, marking an increase of $0.04 [1]. - Sales revenue decreased to $7,541,583 for the three months ended March 31, 2025, down from $8,803,080 in 2024, representing a decline of $1,261,497 or 14.3% [2]. - Gross profit for the same period was $4,759,108, a decrease of $513,614 or 9.7% from $5,272,722 in 2024, primarily due to lower distributor sales [3]. - Selling, general and administrative expenses decreased to $5,629,086 in the first quarter of 2025, down from $5,875,299 in 2024, a reduction of $246,213 or 4.2% [4]. - The net loss increased to $728,981 in the first quarter of 2025, compared to $521,805 in 2024, an increase of $207,176 or 39.7% [5]. Management Changes - The company has appointed Mike Osborn as the new Chief Executive Officer to address distribution challenges, bringing extensive experience from the wine industry [6]. Company Overview - Willamette Valley Vineyards, Inc. is headquartered near Salem, Oregon, and its common stock is traded on NASDAQ under the ticker WVVI [7].

For the quarterly period ended March 31, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT Commission File Number 001-37610 WILLAMETTE VALLEY VINEYARDS, INC. (Exact name of registrant as specified in charter) Oregon 93-0981021 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identificati ...

WVV Founder Jim Bernau Continues as Chairman and President, Marking Strategic Leadership SuccessionSALEM HILLS, Ore., May 12, 2025 /PRNewswire/ -- Willamette Valley Vineyards (NASDAQ: WVVI, WVVIP), one of Oregon's most respected estate wineries, announced today that Mike Osborn, founder of Wine.com, has been named Chief Executive Officer, effective immediately. The appointment follows founder Jim Bernau's January 2025 announcement that he would be stepping back from the CEO role while continuing to serve as ...

Core Viewpoint - Willamette Valley Vineyards, Inc. reported a reduced net loss per common share for the year ended December 31, 2024, indicating improved financial performance compared to the previous year, despite ongoing challenges in the wine industry [1][6]. Financial Performance - The company generated net sales revenues of $39,782,442 for 2024, reflecting a 1.7% increase from $39,136,114 in 2023, primarily due to a rise in direct sales revenue [2]. - Gross profit increased to $24,195,456 in 2024, up 7.3% from $22,557,128 in 2023, attributed to higher product prices and a greater proportion of sales from direct channels [3]. - Selling, general and administrative expenses decreased slightly to $23,623,598 in 2024 from $23,764,330 in 2023, mainly due to lower labor selling costs [4]. - The company reported income from operations of $571,858 in 2024, a significant improvement from a loss of $1,207,202 in 2023, marking an increase of 147.4% [5]. Operational Insights - The CEO highlighted the company's strategy to leverage newly established retail locations to counteract declining sales trends in the industry, emphasizing the potential for long-term shareholder value through a unique ownership model [6]. - The company’s operational results indicate a focus on enhancing direct sales and managing costs effectively to navigate the changing wine market [6].

Market Overview - The total U.S. wine market was estimated at $81.3 billion in 2023, with average wine consumption per resident at 2.68 gallons, down 15% from the 2021 peak[24]. - The number of U.S. active wineries in 2023 was 11,620, representing a 1% decrease compared to 2022, despite the addition of 400 new wineries in 2022[24]. - The Oregon wine industry is expected to grow at a faster rate than the overall domestic wine industry, favoring premium, super premium, and ultra-premium producers[34]. Company Production and Capacity - The Company owns and leases approximately 1,018 acres of land, with 801 acres currently planted or suitable for future vineyard planting, aiming to grow 73% of the grapes needed for its production capacity of 654,000 gallons[41]. - The Company produced approximately 253,974 cases of wine in 2024, an increase from 234,086 cases in 2023, representing a growth of 8.5%[59]. - The company's producing acres yielded approximately 913 tons of grapes in 2024, which is a 5.3% increase from 867 tons produced in 2023[51]. - The total acreage of vineyards owned and leased by the company is 1,356 acres, with 873 acres currently producing grapes[42]. - The company has a production capacity of up to 275,000 cases of wine per year across its facilities, with the Tualatin Winery adding approximately 28,000 cases of capacity[59][61]. - The Company believes its production capacity of 720,000 gallons (303,000 cases) per year provides a competitive advantage over most Oregon wineries[79]. Sales and Marketing Strategy - The Company’s marketing strategy includes direct sales at wineries and through independent distributors, targeting high-quality premium wines[39]. - Direct sales contributed approximately 53.4% of the Company's net sales in 2024, up from 52.4% in 2023[73]. - The Company’s marketing strategy includes direct sales, mailing lists, and distribution through brokers, with increased sales to out-of-state markets[65]. - The Company has one of the largest wine club memberships in Oregon, which supports direct sales and customer engagement[67]. - The Company opened a new sparkling winery, Domaine Willamette Winery, in September 2022, enhancing direct sales and wine tourism opportunities[68]. Financial Performance - The Company reported a net loss of $117,894 for the year ended December 31, 2024, a decrease of 90.2% compared to a net loss of $1,198,593 in 2023[148]. - Net sales revenues increased by $646,328, or 1.7%, to $39,782,442 in 2024, primarily due to a $736,057, or 3.6% increase in direct sales revenue[150]. - The Company sold approximately 186,419 cases of wine in 2024, a decrease of 2.7% from 191,619 cases sold in 2023[145]. - Total revenue for the Company was $40,187,834 in 2024, up from $39,567,828 in 2023, after deducting excise taxes[154]. - Gross profit increased by $1,638,328, or 7.3%, to $24,195,456 in 2024, driven by higher product prices and a greater percentage of direct sales[158]. - The gross margin percentage improved by 3.2 percentage points to 60.8% in 2024, compared to 57.6% in 2023[159]. - Income from operations increased by $1,779,060, or 147.4%, to $571,858 in 2024, attributed to higher gross profit and lower labor expenses[161]. - EBITDA rose by 71.1% to $3,995,135 in 2024, compared to $2,334,629 in 2023, primarily due to a lower net loss[167]. Challenges and Risks - The wine industry is highly competitive, with significant competition from both domestic and foreign producers, which may adversely affect the Company's profitability[98]. - Fluctuations in grape supply due to weather, diseases, or pests could reduce the quantity and quality of wine produced, negatively impacting sales[102]. - A reduction in consumer demand for premium wines could harm the Company's business, influenced by economic conditions and health concerns[104]. - Changes in consumer spending patterns could negatively impact the Company's financial condition and sales[105]. - Increased regulation and taxation in the wine industry could adversely affect the Company's financial results and operations[106]. Debt and Financial Health - As of December 31, 2024, the Company's outstanding long-term debt was approximately $14.0 million, with $2.4 million drawn under its short-term line of credit[96]. - The total long-term debt balance rose to $14,042,910 as of December 31, 2024, up from $7,590,659 in 2023, primarily due to financing for the Estate Hospitality Center and vineyard development[190]. - The Company has incurred a total mortgage principal balance of $14,042,910 on its winery facilities as of December 31, 2024[62]. - The Company has not paid dividends on its Common Stock and does not anticipate doing so in the foreseeable future[129]. - The ability to pay dividends on Preferred Stock is contingent on the Company's financial health and cash generation capabilities[110]. Future Plans and Developments - The Company plans to develop new vineyards on approximately 54 acres of land currently owned or leased, expected to begin producing grapes within the next one to three years[179]. - The Company has continued to invest in vineyard development, with additions costing $237,437 in 2024, down from $419,023 in 2023, indicating a potential shift in capital allocation strategy[212].

Core Viewpoint - Willamette Valley Vineyards, Inc. reported a net loss of $0.17 per common share for the third quarter of 2024, consistent with the same period in 2023, despite a slight increase in sales revenue and gross profit margin [1][5]. Financial Performance - Sales revenue for the three months ended September 30, 2024, was $9,370,713, representing a 0.2% increase from $9,348,066 in the same period of 2023, driven by a rise in direct sales [2]. - Gross profit as a percentage of net sales increased to 62.0% in Q3 2024 from 60.8% in Q3 2023, attributed to a higher proportion of direct sales, which have better margins [3]. - Selling, general and administrative expenses decreased by 0.4% to $5,944,620 in Q3 2024 from $5,967,346 in Q3 2023, mainly due to a reduction in selling and marketing expenses [4]. Net Loss and Operational Insights - The net loss for the three months ended September 30, 2024, was $282,945, a decrease of 13.5% from $326,982 in the same quarter of 2023 [5]. - The CEO noted that the company is adapting to market changes, with wholesalers and retailers reducing wine inventories and focusing on alternative alcoholic beverages, influenced by interest costs and inflation [6]. Strategic Initiatives - The company aims to enhance direct consumer engagement and improve outreach to wholesalers and retail accounts, leveraging its tasting rooms and hospitality experiences to drive positive results [7].

Core Points - Willamette Valley Vineyards, Inc. declared a cash dividend of $0.22 per share on its Series A Redeemable Preferred stock, payable on December 31, 2024 [1] - The dividend is for shareholders of record at the close of business on December 6, 2024 [1] - Future dividends will require approval from the company's board of directors and will be based on the terms outlined in the Amended and Restated Certificate of Designation [1] Company Information - Willamette Valley Vineyards, Inc. is a leading producer of Pinot Noir based in Oregon [1] - The company's common stock is traded on NASDAQ under the ticker WVVI [2] - The company operates its Estate Vineyard near Salem, Oregon [2]

Core Viewpoint - Willamette Valley Vineyards, Inc. reported a loss per common share of $0.07 for the three months ended June 30, 2024, a slight improvement from a loss of $0.08 in the same period of 2023, indicating a challenging market environment influenced by various economic factors [1]. Financial Performance - Sales revenue decreased by $393,885, or 3.7%, from $10,726,243 in Q2 2023 to $10,332,358 in Q2 2024, primarily due to a $597,059 drop in distributor sales, partially offset by a $203,174 increase in direct sales [2]. - Gross profit margin improved to 62.6% in Q2 2024 from 58.3% in Q2 2023, an increase of 4.3 percentage points, attributed to higher product prices [3]. - Selling, general and administrative expenses slightly decreased by $6,955, or 0.1%, from $5,941,739 in Q2 2023 to $5,934,784 in Q2 2024, with a notable reduction in selling and marketing expenses [4]. - Net income rose significantly by $87,525, or 80.7%, from $108,453 in Q2 2023 to $195,978 in Q2 2024, driven by higher product prices [5]. Market Challenges - The CEO highlighted a rapidly changing market influenced by interest costs, inflation, and shifting consumer trends, with wholesalers and retailers reducing wine inventories and reallocating shelf space to alternative alcoholic beverages [6]. - The company aims to enhance direct consumer engagement through wine, culinary, and hospitality experiences at its ten locations, hoping to improve financial results in both wholesale and retail segments [6]. Operational Overview - The company’s headquarters is located at its Estate Vineyard near Salem, Oregon, and its common stock is traded on NASDAQ under the ticker WVVI [7].

Financial Performance - Net sales for the three months ended March 31, 2024, were $8.80 million, up from $8.31 million in the same period of 2023, representing a year-over-year increase of 5.95%[15] - Gross profit for Q1 2024 was $5.27 million, compared to $4.48 million in Q1 2023, indicating a 17.73% increase[15] - The net loss for the three months ended March 31, 2024, was $521,805, an improvement from a net loss of $744,823 in Q1 2023[19] - For the three months ended March 31, 2024, the net loss applicable to common shareholders was $1,084,982, a decrease from a net loss of $1,256,542 in the same period of 2023, resulting in a loss per common share of $0.22 compared to $0.25[24] - The company reported a net loss of $521,805 for the three months ended March 31, 2024, compared to a net loss of $744,823 for the same period in 2023, showing a reduction in losses[15] - The company reported a loss from operations of $(602,577) for the three months ended March 31, 2024, compared to a loss of $(974,950) in 2023[38] Assets and Liabilities - Total assets increased to $106.19 million as of March 31, 2024, compared to $105.71 million at December 31, 2023, reflecting a growth of 0.45%[9] - Total current liabilities decreased to $11.58 million as of March 31, 2024, from $13.80 million at December 31, 2023, a reduction of 16.01%[11] - The company's property and equipment, net, was valued at $53,009,801 as of March 31, 2024, slightly down from $53,369,637 as of December 31, 2023, with depreciation expense for the period at $791,986[27] - Long-term debt increased to $9,962,186 as of March 31, 2024, from $7,590,659 as of December 31, 2023, with future minimum principal payments outlined for the next five years[32] - The outstanding line of credit balance was $3,320,928 at March 31, 2024, up from $2,684,982 at December 31, 2023, both at an interest rate of 8.0%[28] Cash Flow - Cash and cash equivalents at the end of Q1 2024 were $256,472, up from $238,482 at the beginning of the period, marking a 7.67% increase[19] - The company reported a cash outflow from operating activities of $3.01 million for Q1 2024, compared to an outflow of $1.28 million in Q1 2023[19] - The company reported cash flows from operating activities of $(3,012,769) for the three months ended March 31, 2024, compared to $(1,279,932) for the same period in 2023, indicating a decline in cash flow[20] - The company’s cash and cash equivalents at the end of the period were $256,472, compared to $154,340 at the end of the same period in 2023, showing a 66% increase[20] Inventory and Sales - Total inventories as of March 31, 2024, amounted to $28,881,664, an increase from $28,314,779 as of December 31, 2023, with work-in-process inventory at $15,417,269[26] - Direct Sales generated $4,286,156 in net sales for the three months ended March 31, 2024, compared to $4,071,649 in 2023, while Distributor Sales increased to $4,516,924 from $4,237,291[38] - The contribution margin for Direct Sales was $(272,370) for the three months ended March 31, 2024, an improvement from $(432,785) in the same period of 2023[38] - For the three months ended March 31, 2024, total net sales were $8,803,080, an increase of 5.93% from $8,308,940 in the same period of 2023[38] - Gross profit for the same period was $5,272,722, up 17.74% from $4,478,463 in 2023, resulting in a gross margin of 59.9%[38] Shareholder Equity and Stock - The company issued 192,740 shares of preferred stock during the quarter, increasing the total to 10,239,573 shares outstanding[17] - The company has received net proceeds of $3,938,066 from the issuance of Preferred Stock as of March 31, 2024, under various offerings[41] - The company accrued preferred stock dividends of $563,177 for the three months ended March 31, 2024, compared to $511,719 for the same period in 2023, representing a 10% increase[24] - The company’s total shareholders' equity increased to $71,082,759 as of March 31, 2024, compared to $70,635,205 at the end of 2023[12] Lease and Operating Expenses - Operating expenses for Q1 2024 totaled $5.88 million, compared to $5.45 million in Q1 2023, reflecting an increase of 7.93%[15] - Total lease cost for the three months ended March 31, 2024, was $373,849, up from $338,339 in the same period of 2023, indicating a 10.5% increase[59] - Operating lease liabilities as of March 31, 2024, totaled $11,743,657, with a weighted-average remaining lease term of 15.59 years[61] - The weighted-average discount rate for operating leases increased to 7.88% as of March 31, 2024, from 5.36% in the previous year[59] - Selling and marketing expenses rose to $4,027,782 in 2024, compared to $3,983,580 in 2023, reflecting a 1.11% increase[38] Legal and Agreements - The Company is involved in legal proceedings, but management believes these will not materially affect its financial position or cash flows[62] - The company has entered into long-term grape purchase agreements with Willamette Valley wine grape growers, although specific financial terms are not calculable due to variable factors[63] - Payment for grape purchases is contingent on the availability of grapes that meet strict quality standards, with potential refusal of grapes if standards are not met[63]