Annual Report Project - Phase II for ACC2010

Company: Willamette Valley Vineyards, Inc.

1)a) Basic Company Facts: 
• Formed in May 1988
• Sells varietal wines ($7 -$20 per 750ml bottle)
• 110 Acres of company owned land
• Two miles south of Salem, Oregon
• 791 Acres of vineyards owned, leased or contracted
• Owns Tualatin Estate Vineyards (125 acres) near Forest Grove, Oregon
• Leases 114 acres of vineyard land at the same location
• Makes wine at company owned Turner Winery

Complete Name of Company:
Willamette Valley Vineyards, Inc.

Stock Ticker Symbol:
NASDAQ:WVVI

NAICS (North American Industry Classification System) or SIC (Standard Industrial Classification Code:
NAICS: 312130  SIC: 2084

State of Incorporation:
Oregon

Headquarters Location:
Oregon

Independent Auditor:
Moss Adams LLP

Fiscal year-end of the annual report you are using:
December 31

Web Site:
http://wvv.com/

1)b) List the major product(s) your company produces or sells and customers to whom these products are probably sold.
• Willamette Valley Vineyards label (750ml bottles)
  o   Pinot Noir
  o   Chardonnay
  o   Pinot Gris
  o   Riesling and Oregon Blossom (blush blend)
• Tualatin Estate Vineyards label (750ml bottles)
  o   Semi-Sparkling Muscat
• Griffin Creek label (750ml bottles)
  o   Syrah
  o   Merlot
  o   Cabernet Sauvignon
  o   Cabernet Franc
  o   The Griffin (Bordeaux style)
  o   Viognier
• Target demographic
  o   Americans (57% drink wine)
  o   Ages 23 – 30 (also ages 30+)

1)c) Dollar Amount of sales/revenues (2011): 
$15,661,905

Dollar amount of assets (2011):
$24,286,727

Net Income (2011):
$857,755

Earnings per share (diluted)(2011):
$0.18

Would you classify your company as large? Explain.
We would classify this company as small in comparison to other publicly traded companies.  The net income is relatively low by comparison.  The other company we were looking into (Synaptics Inc. NASDAQ:SYNA) had a net income of $54,144,000.  They were recommended on Forbes top 10 small publicly traded companies.  So we figured if Forbes considers $54,144,000 small, then we could comfortably consider $857,755 small.

1)d) Total number of directors: 9

Composition of the BD by gender: Male: 7   Female: 2

How many directors are independent (have no official relationship/position with the company)? 7

How many directors are insiders (hold a position within the company)? 2

What was the source of your information? 
United States Securities and Exchange Commision website (sec.gov), Willamette Valley Vineyards, Inc. Form 10-K for the fiscal year ended December 31, 2011, Part III, Item 10. (http://www.sec.gov/Archives/edgar/data/838875/000119983512000142/willamette_12312011-10k.htm)

Would you say the BD is diversified?  Briefly discuss.
We would say that the BD is diversified, but probably not as much as it could be.  There are definitely more male than female directors and there are definitely more independent than insiders.  The BD could be more evenly dispersed between male and female, insiders and independent.

2) Recent Article about Willamette Valley Vineyard:

Willamette Valley Vineyard Announces Termination Of Chief Financial Officer-Form 8-K

Friday, 11 May 2012 11:04am EDT
Willamette Valley Vineyard reported in its Form 8-K that on May 4, 2012, R. Steven Caldwell was terminated as the Chief Financial Officer (CFO) of Willamette Valley Vineyards, Inc. (Company). Jim Bernau, Chief Executive Officer, will serve as interim Chief Financial Officer through the filing of the 2012 First Quarter 10Q. The Company's management is changing it's focus to include operational duties in the position and is converting the CFO position to Controller who will also serve as the Company's Chief Accounting Officer.

Reuters website: http://www.reuters.com/finance/stocks/WVVI.O/key-developments/article/2540501

Search Method: We used Google Finance to locate this article.   We typed in WVVI into Google Finance and on the right hand side; there are related articles and links.

Author: Reuters

Article Title: Willamette Valley Vineyard Announces Termination of Chief Financial Officer – Form 8-K

Name of periodical or website: http://www.reuters.com

Date: Friday, 11 May 2012 11:04am EDT

Significance: This article is both significant and interesting because shareholders will most likely react to the news that the CFO of a company is being terminated.  This shows unrest in the company’s internal environment and also may cause shareholders to sell their stock in the company.

3) Hypothetical Statement of Corporate Social Responsibility:

We feel that our organization’s main goal is to increase shareholder value.  We feel the best way to achieve this goal is to build a strong reputation for social responsibility.

The information given to our customers should be trustworthy.  The quality of our products should have superior quality.

Our employees are our representatives.  We should encourage and facilitate personal and professional growth.

We should only use suppliers who also believe in social responsibility and help them reach those standards.

We should give back to the community which supports us by keeping our water sources clean and being considerate of nearby neighbors.

We should build an internal culture of strong ethics.  This ethical culture should manifest itself in our employees and those they interact with.