201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, April 2022
“The global wine industry,” wrote Rabobank in its latest Wine Quarterly, “has evolved in a context of cheap freight, cheap energy, and declining trade barriers […] these assumptions may be far less certain than we had previously assumed”. We echo this message, though we see each of the three assumptions being challenged to differing extents.
The last issue cited, the re-emergence of trade barriers, can be attributable to localised political volatility that eventually passes: for example, the US-EU aircraft subsidies dispute appears to be over, so too Brexit’s acutest effects on trade. The world is united in hoping the Russia-Ukraine conflict, too, ends imminently. Such wounds to global trade are patched-up by workarounds and innovation; trade adjusts to the new realities, and carries on. China’s blocking of Australian wine imports is an opportunity for red wine suppliers elsewhere in the world, for example.
Of greater fundamental concern to the wine trade globally are the freight and energy challenges. Both are intrinsically linked, of course, but if we take them in turn: shipping rates experienced exponential growth in 2021 as there is high demand and a shortage of containers. There is also a shortage of vessels. Vessels take years to build and new or imminent emissions laws are making current designs redundant, effectively placing a moratorium on new construction. Shipping, like haulage, is generally concentrated in few hands, reducing price competition and slowing innovation.
Energy supply, also, is concentrated in few hands – the Russia-Ukraine conflict has highlighted some European nations’ reliance on Russian oil and gas, for example – and green levies are in some markets compounding the rising cost. The annual energy bill for UK households increased by an average of GBP693 (USD904, EUR756) from this month. Spain and Portugal are temporarily withdrawing from the EU’s internal energy market in order to cut prices for their citizens. Measures are being introduced to ease record fuel prices: the UK has cut fuel duty by GBP0.05/litre; France has introduced an EUR0.15/litre rebate. But fuel poverty is likely to drag back consumer spending this year.
Rabobank references a “regionalization of supply chains” in response to rising shipping and fuel prices, with companies moving production closer to the endconsumer. We are seeing shipping, once some way down the list of concerns during transactions, becoming in some cases the first discussion point. There is a growth in what might be termed “supply chain parochialism”: while some buyers are casting the net wider for sourcing options that maintain margin, others are ruling-out wines located at a distance or in a specific location so as to avoid high shipping costs and/or delays.
The freight and energy challenges are here to stay in 2022 and potentially well into 2023. But a potent weapon in offsetting challenges has returned after a two-year absence: wine fairs are back, and with them a greater ability to build new relationships, enhance existing ones, and mutually establish workarounds to business impediments.
April brought Alimentaria in Barcelona (busy, and “everyone was happy to see everyone in person”); May brings Fenavin in Ciudad Real and ProWein in Düsseldorf and Ciatti will be attending both, out in force at the latter as in pre-COVID days, with a stand – G24 – in Hall 12. It’s going to be great to see you! In the meantime, read on for detailed updates from each market, 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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