201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti California Market Report, July 2023
Following an unseasonably cool spring and start to summer, California received some overdue 100°F+ heat in late June into early July, though unusually mild spells continue to interrupt these hotter periods, particularly in the Coast during the mornings. More normal, consistently hot weather is in the forecast for the rest of summer, but for now the growing season is still running 3-4 weeks behind in many areas of the state, particularly in the Coast. There is talk in the Interior that the season has caught up a little in some areas, to something like 1-2 weeks behind, but the popular barometer of a ‘normal’ timetable – veraison on Lodi Zinfandel by July 4th – was missed, and indeed veraison was not apparent anywhere in the first week of July.
Consequently, it remains too early to provide a confident guesstimate of crop size. Berry sizing is underway and cluster numbers in general appear good, although shatter occurred on some varieties in some areas of both the Coast and Interior; mildew has also been an issue in places. In general, however, vineyards appear in good shape. Some growers have been thinning out the later-season varieties, potentially in an attempt to ensure they adhere to winery schedules and quality standards in a year in which grape demand is very slow.
The grape and bulk wine markets continue to be sluggish with transactions few in number and often taking a prolonged time to close. Case-good sales numbers continue to look weak, with growing evidence that the $15+/bottle categories are slowing now as well. Wineries are focusing on inventory adjustments and some have indicated they might even need to skip a vintage in order to return to supply/demand balance. As across the wider economy, we continue to hear of rightsizing – with non-profitable brands discontinued, employees laid off and steps being carried out to improve margin.
In this context, growers and bulk suppliers have become less bullish on price as the new vintage nears. Therefore, there are some excellent multi-year wine and grape opportunities to be harnessed from a price-quality perspective, some that come along only rarely and some that dovetail with the need to innovate and communicate with younger consumers. Retail/distributor consolidation has limited the enterprising negociants who might in the past have been seen on the market right now, harnessing such opportunities, but those able to – in the words of Warren Buffet – “get greedy when others are fearful” currently have a lot of choice. Rabobank’s latest Wine Quarterly referred back to the often-quoted 2010 Harvard Business Review article ‘Roaring Out of a Recession’, which stated that those companies that increased marketing spend, capital expenditure and R&D in an economic dip were more likely to have better sales and profits post-dip than their competitors. In short, the cut-through of new lines – or re-energized preexisting lines – is greater at a time when competitors have lowered their voices.
In these challenging times, the Ciatti team can combine its many decades of experience together with the most up-to-the-minute intel to find opportunities for buyers and sellers alike: Don’t hesitate to get in touch. In the meantime, read on for our latest analysis.
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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