201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, November 2021
The Northern Hemisphere harvests are now complete and all have come in lighter than average, though the shortfalls in Italy and Spain (both estimated by OIV to be -9% versus the five-year average) are not dramatic in an historical context, unlike France’s very light 34 million hectolitres, down 27% since 2020. We estimate California’s crop to be short of the 4-million-ton mark that could be said to be the approximate state ‘average’, though not as short as 2020’s 3.4 million tons.
These short crops north of the equator have ensured this year’s global wine production will be – according to the OIV – “extremely low” at 247.1-253.5 million hectolitres, down from a provisional figure for 2020 of 262 million and 7% down from the 20-year average. However, it ought to be noted that the OIV also identified the 2021 Southern Hemisphere as having had a “record-high” crop, up 19% versus 2020, with only New Zealand seeing a shortfall. Other than on the international varietal whites Chardonnay and Sauvignon Blanc, we are not seeing a particular shortage, with – globally-speaking – the international red varietals and generic red and white wines in sufficient supply for demand, which is not currently intense. Argentina, Australia and Spain are carrying red inventory, so too France despite this year’s short crop, and both Australia and France are seeking to use the greater demand for whites to shift red wines via package deals.
Outside specific items – Chardonnay; Sauvignon Blanc; high colour, high alcohol reds, Pinot Noir in some instances; Italy’s Prosecco and Pinot Grigio – demand levels reflect the uncertainty you would expect to see with the world in such a novel position: emerging from a global pandemic. The past 20 months have so warped market rhythms and trends that making long-term sales projections is brave. The rapid economic bounce-back could, in 2022, be the very thing that harms economies, as supply chains struggle to meet demand and inflation, in turn, stagnates consumer spending.
New Zealand Winegrowers CEO Phil Gregan succinctly summarised the supply chain problem: “Like every industry dependent on sea-freight, the ability for New Zealand wineries to ship products to market has been greatly impacted, as transport costs more than double and shipping reliability plunges. Unfortunately, this is a worldwide problem without any quick fix.” Every major wine-producing country is reporting wrestling with port backlogs and a shortage of shipping containers, to varying extents. The inability to ship as quickly as in the past is scuppering potential bulk deals (currently exacerbating red wine inventory as China struggles to find wines that it can import in time for Chinese New Year) and will, if it continues in the medium to long-term, inevitably shift the focus away from trade across oceans toward more local markets where possible. Increased input and freight costs, and deals based nearly as much on time/location as on best price, are likely to increase shelf prices for wine just as consumers start to feel the inflationary pressure. In the bid to claw back margin, could the trend away from generic to more expensive wines start to reverse? We shall see in 2022.
In the meantime, we urge buyers and sellers to stay in dialogue with each other, plus with ourselves and the freight-forwarders, in order to help mitigate as best as possible the impact of any delays. Read on for detailed updates from each market, get in touch with us directly for help, and stay safe.
About
With 8 offices world wide, Ciatti serves our clients with the most up-to-date and accurate market information available. Please contact us with any questions. We are truly at your service.
Greg Livengood
President, Partner and Broker
Greg joined Ciatti in 1994 and became a partner in 1997. Greg has used his degree in International Relations to build Ciatti into the world recognized leader in the alcohol beverage business. Greg is currently the President and CEO of the company and drives the international group.
Email:greg@ciatti.com
Steve Dorfman
Partner and Broker
Steve Dorfman joined Ciatti in 2007 after working with the Brown-Forman Corporation, Fetzer Vineyards, Sonoma-Cutrer Vineyards and Bolla Wine brands for 24 years. His primary responsibilities are wine and grape sales within California, and the supply demands of markets throughout Europe, South Africa and Australia.
Email:steve@ciatti.com
John Ciatti
John White
Partner and Broker
Ciatti has a long history of seeking to provide clients with a well rounded team of brokers whose experience in the industry cover the breadth of the business. John joined the company in 2003 after working as a Winemaker for several of California's major producers for 20 years. John's emphasis is maintaining relationships with California wineries ranging from the largest to the smallest. John has focused on all aspects of growth within the business, from long-term custom crush contracts to spot bulk wine and grape sales. His speciatly is the sourcing and selling of premium varietal lots from the coastal and interior regions of California.
Email:johnw@ciatti.com
Chris Welch
Partner and Broker
Chris Welch joined Ciatti in 1994, and began brokering bulk wine and grapes in 2003 and became a partner in company in 2007. The premium and super premium segment of the California wine industry are the breeding grounds of innovation and where Chris truly excels. His consistent approach helps small and medium size wineries and negotiants achieve the innovation and growth they seek. Chris also works very closely with the Oregon Wine Industry.
Email:chris@ciatti.com
Glenn Proctor
Partner and Broker
Glenn Proctor joined Ciatti in 2003 and became a partner in 2007. Glenn advises wineries on supply positioning and works closely with growers and wineries in marketing their grapes and wine. He specializes in spot and contract bulk wine and grapes sales from all regions of California. He has over 23 years of experience in wine supply strategy, wine-grape quality improvement, brand strategy, and business development. Glenn was previously the Vice President of Winegrowing for Diageo Chateau and Estate Wines, and before that was a Director at Benziger/Glen Ellen Winery during its rapid growth in the early 1990's.
Email:glenn@ciatti.com
Broker
Johnny Leonardo joined Ciatti in 2004 as a broker and knows that surviving in a dynamic wine industry requires one to be a Jack-of-all-Trades. He has experience in all aspects of winery and vineyard operation, from the field to the street. Johnny has developed and managed vineyards, and worked in wine sales and marketing.
Email:johnny@ciatti.com
Andy Bivona
Broker
Andy joined Ciatti as a broker in 1996. His areas of expertise and responsibility include grape and fruit concentrates, beverage and industrial alcohol, fruit alcohol and brandy, and food specialty products. Andy's knowledge of these products has allowed him to branch out and work throughout various parts of the world including Mexico, South America and Europe. Andy remains a wealth of knowledge and offers a creative approach to all endeavors.
Email:abivona@hvc.rr.com
Todd Azevedo
Broker
Todd Azevedo joined Ciatti in 2004 after completing his Agricultural Finance degree from Cal Poly San Luis Obispo. Although Todd brokers wine, grapes, and wine products throughout the state of California, Todd's focus is on the California Central Coast.
Email:todd@ciatti.com
Mark Ishimaru
Customer Account Representative - North America
Joined Ciatti in 2011.
Email: mark@ciatti.com
Molly Richardson
Customer Account Representation - Grower Accounts
Joined Ciatti in 2016
Email: Molly@ciatti.com
Administrative/Accounting Assistant
Joined Ciatti in 2000.
Email:alette@ciatti.com
Michael FungCustomer Account Representative - Sample Room
Joined Ciatti in 2013.
Email: michael@ciatti.com
Contact
Contact List
| Title | Name | Phone | Extension | |
|---|---|---|---|---|
| Partner/Broker | John Ciatti | john@ciatti.com | 4152640762 | |
| Partner/Broker | Steve Dorfman | steve@ciatti.com | 7073213843 | |
| Partner/Broker | Greg Livengood | greg@ciatti.com | 4154975032 | |
| Partner/Broker | Glenn Proctor | glenn@ciatti.com | 7073370609 | |
| Partner/Broker | Chris Welch | chris@ciatti.com | 4152988316 | |
| Partner/Broker | John White | johnw@ciatti.com | 4152500685 | |
| Broker | Todd Azevedo | todd@ciatti.com | 4152656943 | |
| Broker | Johnny Leonardo | johnny@ciatti.com | 4157174438 | |
| Broker | Dennis Schrapp | dennis@ciatticanada.com | 9059338855 |
Location List
| Locations | Address | State | Country | Zip Code |
|---|---|---|---|---|
| CIATTI Global Wine & Grape Brokers | 201 Alameda Del Prado, #101, Novato | CA | United States of America | 94949 |
List of Locations
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