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<SEC-DOCUMENT>0000838875-06-000004.txt : 20060314
<SEC-HEADER>0000838875-06-000004.hdr.sgml : 20060314
<ACCEPTANCE-DATETIME>20060314132558
ACCESSION NUMBER:		0000838875-06-000004
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20051231
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20060314
DATE AS OF CHANGE:		20060314

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WILLAMETTE VALLEY VINEYARDS INC
		CENTRAL INDEX KEY:			0000838875
		STANDARD INDUSTRIAL CLASSIFICATION:	BEVERAGES [2080]
		IRS NUMBER:				930981021
		STATE OF INCORPORATION:			OR
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21522
		FILM NUMBER:		06684343

	BUSINESS ADDRESS:	
		STREET 1:		8800 ENCHANTED WAY S E
		CITY:			TURNER
		STATE:			OR
		ZIP:			97392
		BUSINESS PHONE:		5035889463

	MAIL ADDRESS:	
		STREET 1:		8800 ENCHANTED WAY SE
		CITY:			TURNER
		STATE:			OR
		ZIP:			97392
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>wvv05earnings8k.txt
<TEXT>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

___________________________________________________________

FORM 8-K
___________________________________________________________


CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): March 9, 2006

WILLAMETTE VALLEY VINEYARDS, INC.

 (Exact name of registrant as specified in charter)

Oregon                   0-21522             93-0981021
  (State or other juris-    (Commission           (IRS Employer
diction of incorporation)      Number)      Identification Number)


___________________________________________________________

8800 Enchanted Way, S.E.,
Turner, Oregon 97392
(503)-588-9463

 (Address, including Zip code, and telephone number,
including area code, of registrant's principal executive offices)

___________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))


___________________________________________________________


                  WILLAMETTE VALLEY VINEYARDS, INC.
                         INDEX TO FORM 8-K


Section 2 - Financial Information
Item 2.02 - Results of Operations and Financial Condition

On March 9, 2006, Willamette Valley Vineyards, Inc. (the "Registrant")
issued a press release announcing is financial results for the year
ended December 31, 2005.  The full text of the press release issued in
connection with the announcement is attached to this current report on Form 8-K
as exhibit 99.  The March 9, 2006 press release contains forward-looking
statements regarding the Registrant, and include cautionary statements
identifying important factors that could cause actual results to differ
materially from those anticipated.


(c) EXHIBITS

Exhibit 99 Press Release


SIGNATURES


Pursuant to the requirements of the Security Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                 WILLAMETTE VALLEY VINEYARDS, INC.




Date: March 14, 2006           By /s/ James W. Bernau
                                      James W. Bernau
                                      President


Date: March 14, 2006           By /s/ Sean M. Cary
                                      Sean M. Cary
                                      Controller
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>wvv05earnings.txt
<TEXT>
For immediate release: March 9, 2006
Contact: Jim Bernau (800) 344-9463
NASDAQ: WVVI

Willamette Valley Vineyards, Inc. Reports a Profit for the Year Ended
December 31, 2005.

SALEM, Ore., March 9 -- Willamette Valley Vineyards, Inc. (NASDAQ symbol: WVVI)
produced the Company's highest earning year since inception.  Willamette Valley
reported a net profit of $1,156,939, or $0.26 per basic share, on revenue of
$13.7 million for the year ended December 31, 2005, as compared to a net
profit of $463,682, or $0.10 per basic share, on revenues of $9.4 million for
the year ended December 31, 2004.

The winery's flagship varietal, Pinot Noir, led sales with an increase of 98%,
from 24,550 cases in 2004, to 49,677 cases of the total 110,000 cases of
Willamette Valley Vineyards produced wines in 2005.

Winery Founder and President Jim Bernau attributed much of the record sales to
a national interest in the variety Pinot Noir resulting from the movie
"Sideways".  The winery staff conducted a national essay contest promoted
through its distributors, retailers and website where contestants submitted
short essays entitled "Why I Love Oregon Pinot Noir" to win their own
"Sideways" trip to Oregon Wine Country.  The "$40 a Day" Food Network show
featuring chef Rachael Ray's visit to the winery showed a number of times in
2005, increasing wine consumer awareness of Willamette Valley Vineyards wines
as did the nationally broadcast cellar visit of Public Broadcasting's "Caprial
and John's Kitchen".  The 4th Quarter results were influenced by Willamette
Valley Vineyards Pinot Noir in Wine.com's national holiday promotion as well
as East Coast wine retailer Stew Leonard's holiday catalog.  Also in the 4th
Quarter, Consumer Reports magazine listed the winery's Pinot Gris as a "Best
Buy" in its holiday catalog and The San Francisco Chronicle named this wine
among its Top 100 for the year.

Sales revenue increased 46% and net income increased 149% for the year ended
December 31, 2005 as compared to the prior year period.  Sales revenue
increased primarily due to strong sales of the core product offerings to out-
of-state distributors and through the Oregon Wholesale Department, called
Bacchus Fine Wines, to Oregon restaurant and retail outlets.

Out-of-state distributor sales revenue increased 78% for the year ended
December 31, 2005 as compared to the prior year period.  A 59% increase in the
distributor's depletions (sales from the distributors to their customers) was
the driving force behind the increase in out-of-state sales revenues.  The
continued demand of certain products has prompted the Company to make careful,
upward adjustments in prices as new vintages are released, and place those
products on allocation with its distributors in order to address inventory
constraints.

Sales revenue through the Company's wholesale sales force and through direct
sales from the winery to retail licensees in the state of Oregon increased 38%
for the year ended December 31, 2005 compared to the prior year period,
primarily due to the growth of distributed wine brands.  Revenue from sales of
Company produced products through Bacchus Fine Wines increased 22% for the year
ended December 31, 2005 compared to the prior year period, also contributing
to the revenue growth.

The Company used $3,052,331 of cash generated from net earnings and the
reduction in wine inventories resulting from record sales to pay down the bank
credit line and other financing in 2005.  As a result, interest costs have
dropped significantly compared to comparable prior year periods.  Management
plans to continue to use cash generated from operations to maintain short term
financing balances at zero into the future, to the extent possible.

Increased sales of Company produced products have reduced excess inventories
and the Company is reviewing sales projections in order to plan appropriate
future inventory production levels.  In the past year, the Company planted an
additional 25 acres of vines at its Forest Grove site, bringing the planted
acreage controlled by the Company to over 250 acres, and contracted on a long
term basis for 90 new acres of wine grapes.  Management expects the Company's
shortage of inventory of certain products is likely to constrain the Company's
operating performance during 2006.

Forward-looking statements in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995, and are
identified by such words and phrases as "expects,", "thinks," "believes,"
"anticipates" and words of similar import.  Such forward-looking statements
are subject to risks and uncertainties and actual results could differ
materially from those projected.  Such risks and uncertainties include, but
are not limited to:  availability of financing for growth, availability of
adequate supply of high quality grapes, successful performance of internal
operations, impact of competition, changes in wine broker or distributor
relations or performance, impact of possible adverse weather conditions,
impact of reduction in grape quality or supply due to disease, impact of
governmental regulatory decisions and other risks.

Willamette Valley Vineyards, Inc. is headquartered in Turner, Oregon.  The
company is one of Oregon's leading wineries and the state's only publicly held
winery.  Willamette Valley Vineyards is the owner of Tualatin Estate Vineyards
and Griffin Creek wines.  Willamette Valley Vineyards common stock is traded
on NASDAQ (Symbol: WVVI).




                 WILLAMETTE VALLEY VINEYARDS, INC.
                      Statement of Operations
                  For the Years Ended December 31,

                                            2005         2004

Net revenues                            $13,667,869  $ 9,387,141
Cost of goods sold                        7,282,112    4,806,326
                                        ------------ ------------
    Gross margin                          6,385,757    4,580,815

Selling, general and
  administrative expenses                 4,385,354    3,569,296
                                        ------------ ------------
    Income from operations                2,000,403    1,011,519
                                        ------------ ------------
Other income (expenses):
  Interest income                             1,197        4,633
  Interest expense                         (233,736)    (304,841)
  Other income                               17,336       97,847
                                        ------------ ------------
                                           (215,203)    (202,361)
                                        ------------ ------------

    Income before income taxes            1,785,200      809,158

Income tax provision                        628,261      345,476
                                        ------------ ------------

Net income                              $ 1,156,939  $   463,682
                                        ____________ ____________

Basic net income
  per common share                      $      0.26  $      0.10
                                        ____________ ____________
Diluted net income
  per common share                      $      0.25  $      0.10
                                        ____________ ____________





</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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