UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                           FORM 10-KSB

        ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2003
                                    Commission File No


                  WILLAMETTE VALLEY VINEYARDS, INC.

            (Name of Small Business Issuer in Its Charter)
OREGON                                            93-0981021
(State or other jurisdiction of              (I.R.S. employer
incorporation or organization)          identification number)

                      8800 Enchanted Way, S.E.
                          Turner, OR 97392
              (Address of principal executive offices,
                         including zip code)

                            (503) 588-9463
         (Issuer's telephone number, including area code)

            _______________________________________

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common
Stock

Check whether the Issuer (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the past 12 months (or for such shorter period that
the Issuer was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
YES  [X] NO [ ]

Check if there is no disclosure of delinquent filers pursuant to
Item 405 of Regulation S-B is not contained in this form, and no
disclosure will be contained, to the best of the Issuer's
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this form 10-KSB or any
amendment to this Form 10-KSB [X].

                                      As of December 31, 2003

Issuer's revenues for its most recent fiscal year:    $7,438,981

Aggregate market value of the voting stock held by
non-affiliates of the Issuer based upon the closing
bid price of such stock:                          $9,496,493

Number of shares of Common Stock outstanding:      4,479,478

Transitional Small Business Disclosure Format:     YES [ ] No [X]

                 DOCUMENTS INCORPORATED BY REFERENCE




SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

WILLAMETTE VALLEY VINEYARDS, INC.
(Registrant)


Date: April 14, 2004.       By:______/s/_________________________
James W. Bernau,
Chairperson of the Board,
President

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed below by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.

Signature                       Title                  Date


__/s/________________  Chairperson of the Board,   April 14, 2004
James W. Bernau        President
                       (Principal Executive Officer)

__/s/________________  Controller                  April 14, 2004
Sean M. Cary           (Principal Accounting Officer)


__/s/________________  Director and Vice-President April 14, 2004
James L. Ellis         and Secretary

__/s/________________  Director                    April 14, 2004
Terry W. Emmert

__/s/________________  Director                    April 14, 2004
Betty M. O'Brien

__/s/________________  Director                    April 14, 2004
Stan G. Turel



                     Report of Independent Accountants

To the Board of Directors and Shareholders of
Willamette Valley Vineyards, Inc.


In our opinion, the accompanying balance sheets and the related statements of
operations, of shareholders' equity and of cash flows present fairly, in all
material respects, the financial position of Willamette Valley Vineyards,
Inc. (the "Company") at December 31, 2003 and 2002, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2003, in conformity with accounting principles generally
accepted in the United States of America.  These financial statements are the
responsibility of the Company's management; our responsibility is to express
an opinion on these financial statements based on our audits.  We conducted
our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable
basis for our opinion.


PricewaterhouseCoopers LLP


Portland, Oregon
March 24, 2004







                                     F-1


Willamette Valley Vineyards, Inc.
Statements of Operations
For the Years Ended December 31, 2003, 2002 and 2001


                                            2003         2002         2001

Net revenues                            $ 7,301,781  $ 5,989,456  $ 7,030,791
Cost of goods sold                        3,827,526    2,754,824    3,560,853
                                        ------------ ------------ ------------
    Gross margin                          3,474,255    3,234,632    3,469,938

Selling, general and
  administrative expenses                 3,018,164    2,660,039    2,953,815
                                        ------------ ------------ ------------
    Income from operations                  456,091      574,593      516,123
                                        ------------ ------------ ------------
Other income (expenses):
  Interest income                             5,070        4,469        4,811
  Interest expense                         (341,177)    (357,444)    (441,629)
  Other income                              122,501        5,694       33,555
                                        ------------ ------------ ------------
                                           (213,606)    (347,281)    (403,263)
                                        ------------ ------------ ------------

    Income before income taxes              242,485      227,312      112,860

Income tax provision (Note 9)               104,265       90,837       54,015
                                        ------------ ------------ ------------

Net income                              $   138,220  $   136,475  $    58,845
                                        ____________ ____________ ____________

Basic net income
  per common share                      $      0.03  $      0.03  $      0.01
                                        ____________ ____________ ____________
Diluted net income
  per common share                      $      0.03  $      0.03  $      0.01
                                        ____________ ____________ ____________




    The accompanying notes are an integral part of the financial statements.


                                     F-3.


Willamette Valley Vineyards, Inc.
Statements of Cash Flows
For the Years Ended December 31, 2003, 2002 and 2001


                                            2003         2002         2001

Cash flows from operating activities:
  Net income                             $138,220     $136,475     $ 58,845
  Reconciliation of net income
    to net cash (used in) provided by
    operating activities:
      Depreciation and amortization       713,817      763,077      778,752
      Gain on disposal of fixed assets     (3,003)          -        (3,043)
      Loss on disposal of vines                -        35,465           -
      Deferred income taxes               (12,382)      75,001       36,046
      Bad debt expense                      6,198        8,303       19,260
      Stock issued for compensation        12,427        3,941        3,985
      Changes in assets and liabilities:
        Accounts receivable              (283,173)     218,514     (201,918)
        Inventories                       182,907     (579,909)    (569,776)
        Prepaid expenses and
          other current assets              1,343       39,604      (41,558)
        Note receivable                    (4,186)      15,430       (7,169)
        Other assets                       18,389      (32,763)     (15,291)
        Accounts payable                  380,966     (631,248)     154,618
        Accrued commissions and
          payroll costs                   245,190       75,543       (5,176)
        Income taxes receivable/payable  (115.475)      15,836       17,969
        Grape payables                   (200,344)    (266,429)     222,121
        Deferred rent liability            22,792       25,811       28,758
        Deferred gain                     (24,984)     (24,984)     (24,984)
                                        ------------ ------------ ------------
    Net cash provided by (used for)
      operating activities              1,078,702     (122,333)     451,439
                                        ------------ ------------ ------------

Cash flows from investing activities:
  Additions to property and equipment    (273,214)     (77,087)    (379,953)
  Vineyard development expenditures       (63,275)    (114,443)    (153,930)
  Proceeds on sale of fixed assets         15,128           -            -
                                        ------------ ------------ ------------
    Net cash used in
      investing activities               (321,361)    (191,530)    (533,883)
                                        ------------ ------------ ------------

Cash flows from financing activities:
  Debt issuance costs                     (17,237)     (20,378)     (22,000)
  Net increase (decrease) in line of
    credit balance                       (919,655)     697,671   (1,264,049)
  Proceeds from distributor obligation         -            -     1,500,000
  Proceeds from common stock issued
    and stock options exercised                -         8,574      321,049
  Issuance of long-term debt                   -            -        33,909
  Repayments of long-term debt           (238,951)    (244,331)    (234,831)
                                        ------------ ------------ ------------
    Net cash (use in) provided by
      financing activities             (1,175,843)     441,536      334,078
                                        ------------ ------------ ------------

Net (decrease) increase in cash
  and cash equivalents                   (418,502)     127,673      251,634


Cash and cash equivalents:
  Beginning of year                       632,183      504,510      252,876
                                        ------------ ------------ ------------

  End of year                           $ 213,681    $ 632,183    $ 504,510
                                        ____________ ____________ ____________

    The accompanying notes are an integral part of the financial statements.


                                     F-5



Willamette Valley Vineyards, Inc.
Notes to Financial Statements, Continued



Liquor Control Commission for the Oregon Wine Advisory.  Excise taxes incurred
approximated $340,000 in 2003, $191,000 in 2002 and $200,000 in 2001.

Stock Based Compensation
The Company accounts for the employee and director stock options in accordance
with provisions of Accounting Principles Board ("APB") Opinion No. 25,
Accounting for Stock Issued to Employees.  Pro forma disclosures as required
under Statement of Financial Accounting Standards ("SFAS") No. 123,
Accounting for Stock Based Compensation, and as amended by SFAS No. 148,
Accounting for Stock Based Compensation - Transition and Disclosure, are
presented below (Note 8).

Had compensation cost for the Company's stock option plans been determined
based on the fair value at the grant date for awards consistent with the
provisions of SFAS No. 123, the Company's net earnings would have been
reduced to the pro forma amounts indicated as follows for the year ended
December 31 (Note 8 for certain assumptions with respect to this computation):

                                            2003         2002         2001

Net income, as reported                $  138,220   $  136,475   $   58,845
Add: Stock-based compensation expense
  inlcuded in reported net income,
  net of tax                                7,463        2,365        2,391

Deduct: Total stock-based employee
  compensation expense under fair value
  based method for all awards,
  net of tax                               (31,213)    (25,892)     (70,060)
                                        ------------ ------------ ------------

Pro Forma net income (loss)            $   114,470 $   112,948   $   (8,824)
                                        ____________ ____________ ____________

Earnings per share:
  Basic - as reported                  $      0.03  $     0.03   $     0.01
  Basic - pro forma                           0.03        0.03           -

  Diluted - as reported                       0.03        0.03         0.01
  Diluted - pro forma                         0.03        0.03           -


Basic and Diluted Net Income per Share
Basic earnings per share are computed based on the weighted-average number of
common shares outstanding each year.  Diluted earnings per share are computed
using the weighted average number of shares of common stock and potentially
dilutive securities assumed to be outstanding during the year.  Potentially
dilutive shares from stock options and other common stock equivalents are
excluded from the computation when their effect is antidilutive.

Options to purchase 288,600 shares of common stock were outstanding at
December 31, 2003 and diluted weighted-average shares outstanding at December
31, 2003 include the effect of 5,298 stock options.  Options to purchase
421,670 shares of common stock were outstanding at December 31, 2002 and
diluted weighted-average shares outstanding at December 31, 2002 include the
effect of 2,745 stock options.  Options to purchase 475,170 shares of common
stock were outstanding at December 31, 2001 and diluted weighted-average
shares outstanding at December 31, 2001 include the effect of 47,903 stock
options.  In addition, the warrant outstanding since 1992 was not included in
the computation of diluted earnings per share in 2003, 2002 or 2001 because
the exercise price of $3.42 was greater than the average market price of the
common shares during all three years.


                                    F-10