Willamette Valley Vineyards, Inc. (WVVI): Business Model Canvas [Dec-2025 Updated]

You're looking at Willamette Valley Vineyards, Inc.'s (WVVI) playbook right now, and honestly, it's a story of necessary, aggressive change. Under the new CEO, the focus has clearly shifted hard toward the high-margin Direct-to-Consumer (DTC) channel, which hit a 63.1% margin back in Q1 2025, trying to offset the softness in traditional wholesale. Still, with Q1-Q3 2025 revenue landing at $26.09 million, you need to see exactly how they are balancing that pivot against costs like the $6,217,499 in SG&A expenses. Dive into the full Business Model Canvas below to see the resources and activities driving this strategic shift.

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Willamette Valley Vineyards, Inc. (WVVI) centers on securing distribution, advancing sustainability through circular economy models, and leveraging regional tourism infrastructure. This is critical as the Company navigates market shifts, evidenced by the Q3 2025 net loss of $1,092,450.

The distribution network is undergoing strategic realignment. The transition of all California wine distribution to Serendipity Wines commenced on July 1, 2025, a move made to maintain strong market presence after another large national company exited the state. Willamette Valley Vineyards, Inc. houses eleven brands within its portfolio, all of which will now flow through this new California channel, alongside existing Independent Distributors/Wholesalers handling traditional out-of-state and in-state wholesale sales.

The collaboration with Revino is a concrete step toward sustainability goals, aligning with the fact that all of Willamette Valley Vineyards, Inc.'s producing vineyards are certified LIVE (Low Input Viticulture and Enology).

Here are the specifics on the Revino reusable bottle program:

The partnership with the Willamette Valley Visitors Association (WVVA) supports destination marketing. The region inspires travel that results in nearly 6.8 million overnight trips annually. The WVVA's Strategic Investment Fund is set to begin accepting applications on October 1, 2025, focusing on destination marketing and development investments within the Valley.

Willamette Valley Vineyards, Inc. also maintains relationships with Local Growers through contracts for purchasing grapes, which supplements the production from their estate vineyards. This sourcing strategy helps manage supply risk, especially given the market volatility reflected in the Q1 2025 sales revenue of $7,541,583, a decrease of 14.3% year-over-year.

Key partnership types include:

• Serendipity Wines: New California wholesale access effective July 1, 2025.
• Independent Distributors/Wholesalers: Traditional partners for broader US market reach.
• Revino: Sustainability-focused collaboration using bottles designed for up to 50 reuses.
• Willamette Valley Visitors Association (WVVA): Tourism marketing collaboration targeting the 6.8 million annual overnight visitors.
• Local Growers: Essential suppliers supplementing estate grape production.

Finance: draft 13-week cash view by Friday.

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Key Activities

You're looking at the core engine of Willamette Valley Vineyards, Inc. (WVVI) right now, which is heavily focused on operational execution to reverse recent financial trends. The Key Activities section shows where the company is spending its time and resources to deliver value and generate revenue, especially under the new leadership of CEO Mike Osborn.

Premium Wine Production

The fundamental activity remains the cultivation and vinification of cool-climate varietals, with Pinot Noir being the flagship. The company's wines are made from grapes grown on the 791 acres of vineyard owned, leased, or contracted by Willamette Valley Vineyards, Inc. While statewide data shows Pinot Noir accounts for 60% of Oregon acreage and 58% of grape production, Willamette Valley Vineyards, Inc.'s own production centers on this varietal at its Turner winery.

Direct-to-Consumer (DTC) Sales Focus

Executing the strategic pivot toward Direct-to-Consumer (DTC) sales is a paramount activity, driven by the need to improve margins and reduce reliance on wholesale channels. This shift is critical given the Q3 2025 performance where total revenue fell 10.9% year-over-year to $8.35 million. The CEO, Mike Osborn, is spearheading this focus, leveraging his background to enhance online and on-site sales experiences. The margin benefit is clear: direct sales carry margins of 63.1%, an improvement from 59.9% reported earlier in the year.

The sales channel activity breakdown for the three months ended September 30, 2025, shows the current split:

Honestly, the Q3 data shows distributor sales are still a major component, but the decline in that channel was steeper in the quarter than the direct sales decline. For context, in Q1 2025, distributor sales dropped by $1,285,815, while direct sales actually saw a small increase of $24,318.

Hospitality and Events

Managing the on-site experience is a key activity supporting the DTC channel. This includes operating tasting rooms and restaurants, which are vital for driving direct purchases and wine club sign-ups. As an Owner, you get benefits like one complimentary educational wine tasting for you and up to three guests, once per month, by reservation. The company has plans to expand this footprint, aiming for four new tasting rooms and restaurants over the next two years. Back in 2023, the online wine club membership stood at 6,200 active members, with an average annual purchase of $480 per member.

Vineyard Management

Maintaining the premium quality of the product requires rigorous vineyard management, specifically adhering to sustainability standards. Willamette Valley Vineyards, Inc. is certified by LIVE (Low Input Viticulture and Enology) and maintains partnerships with organizations promoting Salmon-Safe practices. This commitment to certified sustainable farming underpins the premium value proposition.

Capital Raising

A continuous, critical activity is raising capital through its community-funded model to finance growth projects. The ongoing Preferred Stock Offering (NASDAQ: WVVIP) is structured with tiered pricing and specific owner benefits. For applications received by July 31, 2025, the price was $3.35 per share, with a minimum purchase of 150 shares ($502.50). The share price was scheduled to increase to $3.45 on August 1, 2025, and then to $3.95 on November 1, 2025. This preferred stock carries an annual dividend of 6.5% or an Owner Benefit Credit with 15% more value. Separately, the Series A Redeemable Preferred Stock (WVVIP) declared an annual cash dividend of $0.22 per share, payable on December 31, 2025. Preferred Stock Owners also receive a 25% discount on current wine releases and 10% on library wines.

The financial results reflect the pressure this activity is meant to alleviate, with the net loss for Q3 2025 reaching $1.09 million, a 286.1% increase year-over-year, and cumulative net loss for the first three quarters of 2025 at $1.73 million.

• Annual Preferred Stock Dividend Rate: 6.5% (or wine credit with 15% bonus value)
• Series A Preferred Stock Cash Dividend: $0.22 per share
• Owner Discount on Current Releases: 25%
• Owner Discount on Library Wines: 10%
• Minimum Preferred Stock Purchase: 150 shares

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Key Resources

You're looking at the core assets Willamette Valley Vineyards, Inc. (WVVI) relies on to execute its strategy. These aren't just line items; they are the tangible and intangible foundations of the business.

Vineyard Holdings and Production

The physical assets start with the land base. Willamette Valley Vineyards, Inc. controls approximately 791 acres of vineyard land, which includes owned, leased, or contracted sites. This acreage is the source for their premium grapes. The Estate Winery and associated production facilities are engineered for significant output, with a stated capacity of up to 275,000 cases, equivalent to 654,000 gallons, annually. All of the company's vineyards have been certified sustainable. This commitment to stewardship is a core operational resource.

Brand Equity and Reputation

The reputation built over decades is a critical non-physical asset. Willamette Valley Vineyards, Inc. is recognized as a leading Oregon Pinot Noir producer, earning the title of "One of America's Great Pinot Noir Producers" from Wine Enthusiast Magazine. Furthermore, the hospitality component is a recognized strength. The flagship Estate Tasting Room was named the #1 Tasting Room in the Nation by USA TODAY's 10Best Readers' Choice Awards for the second consecutive year in July 2025. The company operates 10 tasting rooms in total, including locations in Vancouver, Washington, Bend, Lake Oswego, and Happy Valley.

Human Capital

Leadership transition is a key resource event. On May 12, 2025, Mike Osborn officially started as the new Chief Executive Officer. Mr. Osborn brings deep e-commerce and wine distribution expertise, having founded Wine.com and built it into the nation's leading online wine retailer over the past 27 years. The company also benefits from the continued guidance of founder Jim Bernau, who serves as President and Chairperson following his transition from the CEO role in January 2025. Chef DJ MacIntyre serves as Wine & Culinary Director.

Financial Capital and Structure

Willamette Valley Vineyards, Inc. utilizes a unique community-owned, publicly traded structure to access capital, trading on NASDAQ under the tickers WVVI and WVVIP. As of May 12, 2025, the market capitalization stood at $28.79 million. The company's short-term liquidity appears solid, evidenced by a reported current ratio of 2.84, and the gross profit margin was reported at 60.82%. The most recent reported quarterly performance from Q3 2025 shows the following operational figures:

The company also has outstanding preferred stock, which is a distinct source of capital access. The weighted-average shares outstanding for common stock as of September 30, 2025, was 4,964,529 shares.

• Vineyard Holdings: Approximately 791 acres owned, leased, or contracted.
• Estate Winery Capacity: Up to 275,000 cases (654,000 gallons) annually.
• Tasting Room Ranking: #1 in the Nation (USA TODAY 10Best, July 2025).
• CEO Start Date: May 12, 2025.
• Q3 2025 Revenue: $8.35 million.
• Q3 2025 Net Loss: $1,092,450.

Finance: draft 13-week cash view by Friday.

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Value Propositions

You're looking at the core things Willamette Valley Vineyards, Inc. offers its customers and owners as of late 2025. It's a mix of product quality, direct experience, and a unique ownership stake.

Premium Oregon Wine

The focus remains on high-quality, cool-climate varietals, primarily Pinot Noir from the Willamette Valley AVA. The company farms or contracts grapes from a total of 791 acres of vineyard.

Experiential Retail

The company supports its brand with physical locations. They have expanded to nine tasting rooms across Oregon, Washington, and California.

Community Ownership

This is where Willamette Valley Vineyards, Inc. really sets itself apart, letting enthusiasts buy into the business via Preferred Stock (NASDAQ: WVVIP). Here's a look at the financial and benefit structure tied to this offering, which is set to end on December 31, 2025.

Sustainability Commitment

Wines are produced with certified sustainable practices, specifically through the dual certification of LIVE and Salmon-Safe. The certified acreage across key vineyards includes:

• 171 acres at Tualatin Estate Vineyard
• 67 acres at Estate Vineyard in the Salem Hills
• 67 acres at Elton Vineyard in the Eola-Amity Hills
• 16 acres at Bernau Estate Vineyard in Dundee

In 2025, Elton Vineyard Founder Betty O'Brien received the 'Hero of Salmon' award.

Diverse Portfolio

The company manages a portfolio spanning multiple wine styles and brands. The total revenue for the first three quarters of 2025 was USD 26.09 million.

The portfolio includes eleven brands, specifically mentioning sparkling wines under the Domaine Willamette label and Bordeaux varietals.

For the three months ended September 30, 2025, sales revenue was $8,353,200, with direct sales contributing $4.64 million and distributor sales contributing $3.72 million.

Recent financial performance for the three months ended September 30, 2025:

Finance: draft 13-week cash view by Friday.

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Customer Relationships

You're looking at how Willamette Valley Vineyards, Inc. keeps its customers close, which is critical given the recent shift in focus toward direct channels.

Dedicated Wine Clubs: Subscription model for recurring revenue and high-margin direct sales.

The wine club remains a core component of the direct-to-consumer (DTC) strategy, which management aims to grow. Direct sales margins are a key focus, showing improvement to 63.1% as of Q1 2025, up from 59.9% the prior year. While historical data from 2020 showed 14,400 wine club members, the current focus is on leveraging this base alongside e-commerce for higher-margin recurring revenue.

Here's a look at the recent direct sales performance, which includes club shipments:

Owner/Shareholder Program: Exclusive benefits and dividends for preferred stockholders, driving loyalty.

The Preferred Stock Offering (NASDAQ: WVVIP) is structured to deeply integrate customers into the business's success. For subscriptions accepted through December 31, 2025, the share price is set at $3.95, with a minimum purchase of 150 shares (costing $592.50) and a maximum of 5,000 shares (costing $19,750) per person. Preferred Stock Owners receive an annual dividend, which can be taken as a cash dividend or as an Owner Benefit Credit worth 15% more than the dividend amount. The annual dividend rate mentioned for this tranche is 5.5%, though an older figure cited was 22 cents per share.

The benefits are designed to drive repeat, high-value purchasing behavior:

• 25% discount on current wine releases.
• 10% discount on library wines.
• Monthly complimentary wine tastings for the owner and up to three guests.
• Priority access to limited-production wines.

Experiential Loyalty: High-touch service and event hosting at multiple tasting room locations.

Experiential offerings are central, as evidenced by the winery being named the USA Today 10Best Tasting Room in the Nation for the Second Consecutive Year as of late 2025. This focus supports the overall DTC push, as tasting rooms are key touchpoints. Industry data for the Willamette Valley shows that 85.5% of visitors engage in wine tasting. The company continues to emphasize growth through its tasting room locations.

Personalized E-commerce: Leveraging new CEO's expertise for data-driven online engagement.

The appointment of Mike Osborn, founder of Wine.com, in early 2025 signals a major push for data-driven online engagement. This pivot aims to reduce reliance on distributors, whose sales declined by $1.29 million in Q1 2025. While Q3 2025 direct sales revenue of $4,636,319 was down year-over-year for that quarter, the overall strategy is to use e-commerce expertise to stabilize and grow this high-margin channel. For the nine months ending September 30, 2025, total revenue was $37.37M over the last twelve months, down 4.82% year-over-year.

The shift is quantified by the margin goal:

• Target Direct Sales Margin: 63.1%.
• Prior Year Direct Sales Margin (Q1 2024): 59.9%.

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Channels

You're looking at how Willamette Valley Vineyards, Inc. (WVVI) gets its product to the customer, which is definitely shifting toward higher-margin interactions as of late 2025.

Tasting Rooms/Restaurants: Willamette Valley Vineyards, Inc. maintains nine physical locations across Oregon, Washington, and California for direct sales and hospitality experiences. These spots, including the Estate Tasting Room in Turner, OR, and locations in Vancouver, WA, and Folsom, CA, are crucial for brand immersion and immediate revenue capture. The company also highlights experiences like the Pinot Noir Clonal Blending Experience, priced at $95 per person, or $80 for Owners and Wine Club Members, showing a premiumization effort within this channel.

Wine Club/E-commerce: This direct-to-consumer (DTC) segment is the strategic focus under the new leadership. Direct sales, which encompass wine club, e-commerce, and tasting room sales, carry significantly better unit economics. For instance, in Q1 2025, the margin on direct sales was reported at 63.1%, an improvement from 59.9% the prior year. This channel is key to insulating the company from wholesale volatility.

Here's the quick math on the most recent quarterly revenue split, reflecting the pressure on wholesale versus the relative strength of DTC:

National Distributors: This wholesale channel moves product outside of Oregon, placing Willamette Valley Vineyards, Inc. wines in retail stores and restaurants nationwide. In 2024, sales to distributors decreased by $89,729, or 0.5%, compared to 2023, indicating some softness even before the Q3 2025 decline.

In-State Distributors: This represents wholesale movement within Oregon. The Q3 2025 results show a sharp drop here, with sales through distributors falling by $633,093 compared to the prior year period. This segment contributed $3.72 million to the Q3 2025 total revenue.

On-site Events: Beyond standard tasting room service, Willamette Valley Vineyards, Inc. monetizes its physical assets through private bookings. The company hosts weddings and private corporate events. Furthermore, they maintain public engagement through signature happenings, such as the Grape Stomp festival, which drives significant on-site traffic and sales.

• Private Winery Tour & Tasting cost: $40 per person (credited to purchase of 2+ bottles).
• Winery Tours are complimentary for Wine Club Members and Owners.

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Customer Segments

You're looking at the core groups Willamette Valley Vineyards, Inc. (WVVI) serves, based on how they structure their reporting and sales efforts as of late 2025.

The Company officially reports performance based on two operating segments: Direct Sales and Distributor Sales, which map closely to the customer groups you listed.

Wine Enthusiast Owners: Preferred stockholders who are also loyal customers and club members.

• This group includes the base of loyal, direct-buying consumers.
• WVVI reported approximately 14,385 preferred stockholders from stock sales since August 2015.
• The wine club membership count as of December 31, 2023, was 11,541 members.
• These customers fall under the Direct Sales segment, which also includes internet sales and on-site events.

Affluent Wine Tourists: Visitors seeking premium, experiential tasting room and dining experiences.

• This segment drives retail sales through the tasting rooms, which management highlights as a key part of Direct Sales.
• The Tasting Room achieved the highest rating by readers of USA Today for the second consecutive year.
• Direct Sales revenue saw a decrease of $223,199 for the quarter ending June 30, 2025.
• Direct Sales revenue also decreased by $384,420 for the three months ended September 30, 2025.

National Wholesale Buyers: Retail chains, grocery stores, and restaurants served by distributors.

• These buyers are served through the Distributor Sales segment, which involves wholesale rates.
• Distributor Sales revenue decreased by $633,093 for the three months ended September 30, 2025.
• Total cases sold for the first half of 2025 was 83,968 cases, down 7.8% from the first half of 2024.

Regional Fine Wine Consumers: Buyers of premium Oregon Pinot Noir and other varietals.

This group is largely captured within the Distributor Sales channel, purchasing the premium Pinot Noir and other varietals that Willamette Valley Vineyards, Inc. is known for. The overall sales performance across both channels reflects the market conditions impacting these consumers.

Here's the quick math on the segment revenue performance for the recent reported quarters:

The Company evaluates performance based on the gross profit of these respective business segments.

Finance: draft 13-week cash view by Friday.

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Cost Structure

You're looking at the core expenses Willamette Valley Vineyards, Inc. faces to keep the wine flowing and the doors open across its operations. Honestly, the cost side of the wine business is heavily weighted toward the physical product and the customer experience.

Cost of Goods Sold (COGS)

Cost of Sales includes grape costs, whether purchased or grown at Company vineyards, crush costs, winemaking and processing costs, bottling, packaging, warehousing, and shipping and handling costs associated with purchased production materials. For grapes grown at Company vineyards, costs include farming expenditures and amortization of vineyard development costs. The winery bottled 93,462 cases during the six months ended June 30, 2025. The Cost of Sales for the first three quarters of 2025 cumulatively was approximately $10.78 Million (calculated as Cumulative Revenue $26.09 Million minus Cumulative Gross Profit $15.31 Million, using Q3 cumulative data). Looking at recent quarters:

Selling, General, and Administrative (SG&A)

SG&A expenses for the three months ended September 30, 2025, were $6,217,499, which was up 4.6% year-over-year from $5,944,620 in Q3 2024. This category absorbs a significant portion of the operational spend outside of making the wine itself. For comparison, SG&A in Q1 2025 was $5,629,086.

Distribution Costs

These costs cover fees and logistics for moving product through third-party wholesalers and handling direct-to-consumer (DTC) shipping. The company noted a decrease in case sales through distributors in the first half of 2025, which should impact these variable costs. The overall Cost of Sales definition includes shipping and handling costs, which is the closest available proxy for logistics spend.

Interest Expense

Debt servicing costs are a clear pressure point. Interest expense, net for the six months ended June 30, 2025, was $568,366, a 15.2% increase over the prior year period due to increased long-term debt. The company's EBIT over the last twelve months ending June 2025 covered interest expense only 0.15 times, indicating a heavy debt load. For the required context of Q1 2025, the interest expense consumed 4.2% of revenue, based on the $7,541,583 Q1 2025 revenue.

• Total Debt as of June 30, 2025: $18.0m.
• Liabilities due within one year (June 30, 2025): $8.91m.
• Liquidation Preference of Preferred Stock (June 30, 2025): $43,620,581.
• Interest paid in cash for the year ended December 31, 2024: $1,018,970.

Hospitality/Retail Overhead

This covers the costs for staffing and operating the nine tasting rooms and restaurants. These locations are key for DTC sales but carry higher selling costs, as noted when comparing 2023 results to prior years. The company has seen positive recognition for its tasting room, which was awarded Best Wine Tasting Room in the country by USA Today for the second consecutive year.

The structure of these fixed and semi-fixed hospitality costs is a major driver in the SG&A line item. You've got nine locations to staff and maintain, so that overhead doesn't disappear when wine case sales drop.

Willamette Valley Vineyards, Inc. (WVVI) - Canvas Business Model: Revenue Streams

You're looking at how Willamette Valley Vineyards, Inc. (WVVI) actually brings in the cash, which is key for any valuation work you're doing. The revenue streams are clearly segmented, focusing heavily on direct consumer interaction for better profitability.

The highest margin activity is definitely Direct Sales (DTC). This comes from the wine club memberships, sales at the tasting rooms, and the e-commerce platform. Here's the quick math on that margin performance from early 2025:

Also important are the wholesale channels, which provide volume but at a lower margin, naturally. These streams help Willamette Valley Vineyards, Inc. (WVVI) reach markets beyond its immediate physical footprint. The revenue sources break down like this:

• Direct Sales (DTC): Highest margin stream from wine club, tasting rooms, and e-commerce.
• Distributor Sales: Wholesale revenue from national and international markets.
• Hospitality/Event Sales: Revenue from on-site dining, catering, and event hosting.

When you look at the top-line performance through the first three quarters of 2025, you see the context for these margins. Cumulative revenue for Q1-Q3 2025 hit $26.09 million, which reflects an 8.47% year-over-year decline. If onboarding new wine club members takes longer than expected, that DTC stream could see pressure, defintely.

For a broader view of the business's scale right now, we look at the Trailing Twelve Months (TTM) figure as of September 30, 2025. That TTM Revenue stands at $37.37 million. It's crucial to compare that TTM number against prior periods to gauge the current trajectory.

Finance: draft 13-week cash view by Friday.