201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
With a new year underway, we at Ciatti wish all of our friends, clients and business associates a very happy and prosperous 12 months ahead. Many thanks for your continued support.
If 2022 was characterised by rising inflation levels, and 2023 by interest-rate increases to tackle inflation, then 2024 was characterised by the hangover. A word for it was coined: “Vibecession” – a disconnect between the more positive economic indicators emerging through the year and consumer perceptions of the economy. In some cases, earnings increases have lagged 2021-23 inflation, reducing spending power outright. But more pervasive is a sense of a “cost-of-living crisis”: essential living expenses – mortgages, rent, fuel, energy – are noticeably higher than four years ago and constitute a greater share of total spend. As we observed in September, in a discretionary-spending squeeze, “wine’s higher price per alcohol unit versus its ever-proliferating number of rival beverages is a disadvantage”.
This might help explain International Organisation of Vine & Wine statistics published in April, showing a steep decline in global wine consumption since 2021. This decline is an acceleration of a pre-existing trend from 2018 onwards, when concerted growth in China’s demand for imported wines went into reverse. It now appears likely that Chinese demand growth through the 2010s masked sales stagnation in mature markets, perhaps attributable to changing demographics and consumer behaviour.
A decline in consumer demand for wine is ultimately felt by winegrape growers, who in 2024 pulled out, mothballed or minimally farmed vineyards in ever greater numbers. Chile may have removed up to 20% of its vineyard area across 2023 and 2024; state-sponsored removals are underway in southern France, where wine industry bodies suggest some 100,000 hectares require uprooting; in California, tens of thousands of acres were likely removed over the past 18 months. Steps to right-size supply into better balance with demand will yield results all the quicker if consumption stabilises in North America and Europe. All hope 2025 will be the year.
The bulk market in 2024 took on a more ‘normal’ appearance after a protracted lethargy. Two years of lighter crops – mainly weather-related, though lack of vineyard investment will have played a part – caused supply tightness and price rises on whites (generics, varietals, sparkling bases) in Europe, Chile and South Africa. Higher prices on particular wines led to new enquiries into alternative sourcing. Meanwhile, some lower prices – mainly on reds – opened up attractive opportunities for those buyers who could identify a retail market need or niche. Innovation in the supply chain – namely, just-in-time buying to reduce costs and risk – is being mirrored on the retail shelf, with the likes of low/no-alcohol wines, wine cocktails and flavoured wines cropping up more in industry conversation.
With its interconnected offices across the globe, able to react quickly and provide live industry information, Ciatti is uniquely positioned to help facilitate the justin-time business model becoming the norm. Get in touch for the very latest opportunities and to arrange a meeting at Wine Paris on 10-12th February, where Ciatti brokers will be in attendance. In the meantime, read on for a review of 2024 by country, and some tentative projections of what 2025 might bring
Read the full report
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.
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.
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.
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.
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.
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.
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.
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.
Joined Ciatti in 2011.
Molly Richardson
Customer Account Representation - Grower Accounts
Joined Ciatti in 2016
Email: Molly@ciatti.com
Joined Ciatti in 2000.
Customer Account Representative - Sample Room
Joined Ciatti in 2013.
Email: michael@ciatti.com
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 |
Locations | Address | State | Country | Zip Code |
---|---|---|---|---|
CIATTI Global Wine & Grape Brokers | 201 Alameda Del Prado, #101, Novato | CA | United States of America | 94949 |