Willamette Valley Vineyards (WVVI) risk factors, FY2024 10-K

Willamette Valley Vineyards's FY2024 10-K, filed Mar 25, 2025, lists 21 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
210 groups
Section length
4k wordsItem 1A

Willamette Valley Vineyards's biggest risks in the FY2024 10-K

  • Wine production faces extreme weather, wildfire smoke, and agricultural diseases that threaten grape supply.
  • Operations rely on lines of credit and key executives like James W. Bernau and John Ferry.
  • Strict regulation by the TTB, OLCC, and foreign agencies governs labeling, distribution, and licensing.

The risks most specific to Willamette Valley Vineyards

  • Agricultural risks could adversely affect the Company

    Diseases, pests, fungi, viruses like Grapevine Red Blotch Disease, drought, and frost can reduce grape availability and profitability.

  • Additionally, long-term changes in weather patterns could adversely affect the Company, especially if such changes impacted the amount or quality of grapes harvested. We cannot anticipate changes in weather patterns/conditions, and we cannot predict their impact on our operations if they were to occur

    Wildfires can produce smoke damage that renders harvested grapes unusable for wine production.

  • Loss of key employees could harm the Company’s reputation and business

    The loss of key executives, including President and CEO James W. Bernau and CFO John Ferry, could harm the business.

  • The Company’s ability to operate requires adequate funding

    Historical cash flow from operations has been insufficient, requiring reliance on two lines of credit and term loans.

  • The Willamette Valley AVA value may be eroded by out of state competition who use it inappropriately or as fanciful marketing

    Out-of-state competition using the Willamette Valley AVA inappropriately or as fanciful marketing may erode regional value.

  • Loss of the “Willamette Valley Vineyards” or “Willamette” trademarks could adversely affect the Company’s distinction within the AVA

    Loss or failure to enforce the Willamette Valley Vineyards and Willamette trademarks could harm distinction within the AVA.

  • Increased regulation and/or taxation could adversely affect the Company

    Extensive regulation by the TTB, OLCC, and local authorities dictates licensing, trade practices, distribution, and labeling.

  • The Company may be unable to pay accumulated dividends on its Preferred Stock

    The company may be unable to pay the cumulative 5.3% dividend of $0.22 per share on its Preferred Stock if surplus funds are unavailable.

All 21 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Agricultural risks could adversely affect the Company
  2. 02Our operations are susceptible to changing weather patterns and other environmental factors
  3. 03Additionally, long-term changes in weather patterns could adversely affect the Company, especially if such changes impacted the amount or quality of grapes harvested. We cannot anticipate changes in weather patterns/conditions, and we cannot predict their impact on our operations if they were to occur
  4. 04We may not be able to economically insure certain risks
  5. 05Loss of key employees could harm the Company’s reputation and business
  6. 06The Company’s ability to operate requires adequate funding
  7. 07Costs of being a publicly-held company may put the Company at a competitive disadvantage
  8. 08The Company faces significant competition which could adversely affect profitability
  9. 09The Willamette Valley AVA value may be eroded by out of state competition who use it inappropriately or as fanciful marketing
  10. 10Loss of the “Willamette Valley Vineyards” or “Willamette” trademarks could adversely affect the Company’s distinction within the AVA
  11. 11Fluctuations in quantity and quality of grape supply could adversely affect the Company
  12. 12Contamination of the Company’s wines would harm the Company’s business
  13. 13A reduction in consumer demand for premium wines could harm the Company’s business
  14. 14Changes in consumer spending could have a negative impact on the Company’s financial condition and business results
  15. 15Increased regulation and/or taxation could adversely affect the Company
  16. 16The Company’s common stock is thinly traded, and therefore not as liquid as other investments
  17. 17The Company may face liabilities associated with the offer and sale of its Preferred Stock
  18. 18The Company may be unable to pay accumulated dividends on its Preferred Stock
  19. 19The issuance of additional shares of our Preferred Stock or Common Stock in the future could adversely affect holders of Common Stock
  20. 20Failures or security breaches of our information technology systems could disrupt our operations and negatively impact our business
  21. 21The provisions in our articles of incorporation, our by-laws and Oregon law could delay or deter tender offers or takeover attempts that may offer a premium for our common stock

Other Willamette Valley Vineyards 10-Ks

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.