201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, September 2022
This year’s Northern Hemisphere harvests are now underway and while Mother Nature has seemingly been even more capricious than usual – heatwaves, humidity, hailstorms, flooding, mildew, disease pressure – there has been little news emanating from the vineyards to stimulate an uptick in buying activity on bulk markets carrying large inventories.
Despite mildew pressure in Bordeaux and drought in western Languedoc, France as a whole is estimated to be on track for a crop of 45 million hectolitres, in line with the five-year average. A suffocatingly hot summer in Spain has taken its toll on the juice yield of La Mancha’s international varietals, but we currently do not expect the overall crop to be significantly down from last year’s 40 million hectolitres. Italy’s crop is estimated at 42-43 million hectolitres, down markedly from last year’s 50 million hectolitres due to heat and hailstorms, but this size is not unprecedented, being in line with 2017. California’s crop is lagging 2-4 weeks behind due to an unseasonably mild and wet growing season, so that it remains too early to make a forecast.
Meanwhile, the Southern Hemisphere’s export sales remain steady at a reduced level: Chile could possess its largest ever carryover stock as of 31st December as total export volumes remain 25% reduced versus last year; Argentina has normal availability levels despite its 2023 crop being one of its shortest on record, illustrating the sales decline; South Africa’s domestic sales volumes now outpace its export sales. In fact, South Africa’s domestic wine market is one of the few around the world actually growing, possibly the only significant-sized market doing so: the drinking age population is approximately 40 million. Growth is being driven by entry-level red and white wines for the bag-in-box market.
Inflation is trending downward in many markets, pausing further interest-rate rises in some; cautious optimism is being aired regarding final-quarter 2023 consumer sales. Typical of recent reports of improved consumer sentiment, market research company GFK in its August update on the UK market declared: “Hopes for the personal financial situation for the coming year are heading back towards positive territory. This renewed optimism can also be seen in the similar turnaround for our view on the general economic outlook for the next 12 months [negativity is at half the level it was a year ago], and the eight-point advance in major purchase intentions is potentially better news for retailers as we move into autumn.” It ought to be remembered, however, that grocery price inflation – the measurement probably most relevant in assessing what sort of consumer sentiment wine is facing in the retail aisles – is proving one of the slowest to fall.
Ultimately, the wine industry is entering a period of painful but necessary rationalisation of production to bring global supply back into greater balance with demand after 15 years of declining consumption. COVID-19 delayed this, but we are now seeing vineyard removals discussed and in some instances being carried out. In the meantime, many bulk prices constitute an opportunity, offering great value, and – if consumer sentiment really does improve towards the end of this year – now may be the best time to take advantage. The Ciatti team stands ready to help pair up buyers with suppliers. In the meantime, read on for detailed updates on each market.
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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