201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, September 2021
The 2021 growing season in Europe has been one of the most challenging for many years, with severe frosts occurring post-budbreak followed by a very wet or drought-hit summer, depending on location. France, arguably the most affected, is officially forecast to see a crop down 25% in size on the five-year average, which – because of vine pull-outs over recent decades – would make it the smallest crop on record. However, in southern France, Chardonnay, Sauvignon Blanc and other white varietals are coming in below even this estimate, at closer to a 50% shortfall.
Italy’s total crop shortfall is expected to be significantly less dramatic, at 9% down from last year’s 49 million hectolitres, though some areas – such as EmiliaRomagna (-15%) and Abruzzo (-18%) – are expected to fare worse than that. Spain’s crop, too, is now expected to come in shorter than the long-term average, with tonnages in La Mancha on the first grapes to be picked – whites including Chardonnay and Sauvignon Blanc – down by roughly 25-30%.
Despite this news and the latest Comité Européen des Enterprises forecast – of a 23-million-hectolitre shortfall in European wine production this year – the bulk markets of Europe are not frenzied. As the Italy page reports this month: “All big operators are being extremely careful in price agreements and volume engagements. In addition, supermarkets are taking more time to close contracts because of the general, strong price increases in liquid and dry goods.” Similar can be seen in the US, where buyer hesitation is relatively high despite California being on course for a second-successive below-average crop.
Buyers are moving into the Northern Hemisphere autumn – when COVID-19 will doubtless make a return to the front pages – with a hazy picture of future sales at best. Should lockdowns fail to materialise and economies continue to emerge from the pandemic, costs will rise in the face of demand pressure across the whole supply chain. Some 40% of all wine consumed has to cross an international border to get to the consumer: haulage scarcity, container shortages at ports, delays to shipping and increased freight costs are complicating, and will continue to complicate, the national and international movement of wine and will render some bulk wine deals no longer feasible, margin-wise. Emerging from a pandemic brings its own challenges, just as being in one does.
Wine Australia has collated the production data currently available for 2021 and estimates global production will be at 25 billion litres – “the second lowest in the past 10 years”. However, drawing on OIV and IWSR statistics, it estimates global consumption at 23.7 billion litres, meaning a surplus of 1.3 billion litres. Markets which saw increased wine sales volumes at retail because of pantrystocking in the extraordinary year of 2020 are now seeing steady returns to normal consumer behaviour, and while it appears there is a global shortage of the crisp dry whites – Sauvignon Blanc (in particular), Chardonnay and Pinot Grigio – which the Northern Hemisphere harvests will not alleviate, reds remain in surplus or at least in balance. The next three months until Christmas will be important: the Northern Hemisphere harvests – and the response of the bulk markets – will be clear, the Southern Hemisphere markets will then take their cue, and we will discover if the vaccination programmes have made winter lockdowns a thing of the past. In the meantime, read on for detailed updates from each market, get in touch with us directly for more information, 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 |
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