WILLAMETTE VALLEY VINEYARDS (WVVI) UPDATE: Raining on the Parade of Deception
Brought to you by The Woodworth Contrarian Fund
Domaine Willamette’s Hwy 99W Entrance in September 2026 (Woodworth Contrarian 2026)
Willamette Valley Vineyards (NASDAQ: WVVI) and its preferred equity (WVVIP) continue to march toward the financial abyss. This Saturday, September 12th, the company is hosting an event to celebrate "the launch of our expansion to the east side of our hill, where future vineyards and hospitality are planned at our Estate in the Salem Hills."
On the surface, it sounds like an exciting growth story. But a look beneath the surface reveals a desperate management team attempting to construct a mirage. This "expansion" has two glaring, fatal flaws that investors cannot ignore.
Problem 1: The Phantom Resort
Resort Concept Image #1 - WVVI Annual 2026 Investor Presentation
Resort Concept Image #2 - WVVI Annual 2026 Investor Presentation
As we extensively documented in our recent report, The Man Behind the Curtain, the planned "hospitality" expansion on the eastern slopes is entirely unpermitted. Zoning and land-use regulations make it highly unlikely that the company will ever receive approval to build a destination resort on this site. Jim Bernau is selling investors and the public on a fantasy project that simply is not legally allowed to be built.
Domaine Willamette Grapes unpicked as of September 2026 (Woodworth Contrarian 2026)
Problem 2: Expanding into an Industry Collapse
The decision to expand a physical vineyard in the current macroeconomic climate defies all financial logic. The broader wine market is in severe distress. Across the West Coast, vineyards are being forced to pull up vines and leave grapes unharvested.
As recently highlighted by Koin 6 News, Oregon producers are being crushed by tandem crises of plummeting exports and declining domestic demand for wine. As Gary Mortenson of Stoller Wine Group put it, "what it signifies is this is the worst crisis our industry has had in at least the last 20 years." We are already seeing established wineries enter receivership under millions in debt. To pour capital into expanding vineyard acreage when the industry is drowning in oversupply and bankruptcies is a catastrophic misallocation of shareholder capital.
The Real Motive: The Preferred Stock Trap
If expanding a vineyard makes no financial sense, and the hospitality resort isn't legally permitted, why is Jim Bernau throwing a party for it?
The answer is simple: Cash flow.
Bernau is desperately trying to manufacture excitement to sell more of the company’s preferred stock (WVVIP Series A) at above-market prices to unsuspecting retail investors. The company relies on these preferred stock offerings just to keep the lights on.
As we have stated in our previous reports (Sour Grapes and Not So Great Value), WVVI is a company under severe distress. It is not suffering merely from a weak wine market; it is suffocating under the weight of poor management, disastrous strategic decisions, and a board that prioritizes covering up the truth over fiduciary duty. Jim Bernau’s 2026 annual meeting presentation was a masterpiece in misdirection - peddling a prohibited "destination resort" to distract from bank overdrafts, debt covenant violations, and a crushing preferred stock burden.
The Bottom Line
The financial reality is already reflected in the destruction of shareholder value. The common stock (WVVI) has plummeted to $2.09, levels not seen since 2004, while the preferred shares (WVVIP) languish around $2.65 (9/9/26). Meanwhile, the company is offering the same preferred shares, WVVIP, directly to the public at 3.45/share, a 30% premium to open market trading. Investors and the public are being fed a deceptive narrative designed to extract more cash to plug the holes of a sinking ship.
We reiterate our stance: Avoid WVVI and WVVIP at all costs. The underlying financials suggest a company on a direct path to insolvency, propped up solely by the continued extraction of cash from retail investors via preferred equity offerings.
A final note: For those planning to attend this launch event on Saturday, you might want to bring an umbrella. Forecasts for the Salem Hills show temperatures hovering around 53 degrees in the morning, struggling to reach the low 60s, with a high likelihood of showers.
It seems the weather, much like the market, is preparing to rain on Jim Bernau’s parade of deception.
Domaine Willamette in September 2026 (Woodworth Contrarian 2026)
Please note that the Woodworth Contrarian Stock & Bond Fund, LP, of which the Millegan Brothers manage and are invested in, do not currently hold a position of WVVI as of the publication date of this article. They may or may not choose to modify their exposure to this name for any reason at any time. This is not a recommendation to buy or sell WVVI or any other name - investments incur significant risk, our risk tolerance may be significantly higher than the average investor, and any discussion in this article does not take into consideration your individual circumstances.
Previous reports on WVVI available here:
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About the Managers: Brothers Drew Millegan and Quinn Millegan manage the Woodworth Contrarian Stock & Bond Fund, a hedge fund based in McMinnville, Oregon. They grew up in the finance world, and specialize in contrarian investment strategies in the US Public and Private markets.
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