201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, October 2021
The Northern Hemisphere harvests are in their closing stages and all have experienced shortfalls to varying extents. France is the headline-maker, suffering a shortfall large enough to hand over its rank as the world’s secondlargest wine producer to Spain. The assumption is that the crop in southern France was down 40% versus the average and as much as 50-70% down on the white varietals.
The shortfalls elsewhere are not so stark: Italy expects a 9% drop from its 2020 figure, with some September rains helping late maturation in Veneto, Puglia and other regions; Sicily’s crop was in fact up versus the prior year. The La Mancha region of Spain, meanwhile, could see a drop from the multi–year average of approximately 20%. Bulk prices have risen significantly in France, enabling Spanish pricing to move up behind. Spain’s aggressive 2020 vintage pricing is now especially unsustainable for suppliers given recent big increases in dry-good prices and energy bills.
With spiralling freight prices globally in addition to the increased dry-good and other input costs, plus price hikes on the wines themselves, the shelf price of wine will feel upward pressure in 2022. It will be interesting to see what postpandemic consumers – suffering the same inflationary energy bills and everyday prices – will make of that. Yes, ‘post-pandemic’ – certainly many countries, exemplified by some of the major wine-producing ones, are back as close to normal as they have been since February 2020: Chile in recent days has lifted its 19-month state of emergency, South Africa has shifted down into its lowest of restrictions, ditto Spain. Foreign travel is plausible again.
The global recovery is spurring inflationary pressure across supply chains and compounding a shortage of shipping containers, shipping vessels, and efficient port operations. Buyers of wine now must first factor logistics into their calculations when first considering where to source: can the wine get shipped from country A to country B in time? Is the shipping cost prohibitive? Is there a trade agreement between the two countries that can help mitigate some of that cost? We urge buyers and sellers to stay in dialogue with each other, plus with ourselves and the freight-forwarders, in order to help mitigate and get ready for – as best as possible – the impact of any delays. We’re here to help.
The two-speed bulk market continues with, in general, white varietals in short supply and red varietal supply sufficient. Despite this year’s production falls, France and Spain will have good supplies of red wines of all kinds, Argentina and Australia too – the latter’s price softening as the collapse in Chinese demand continues to be felt. But vintage 2021 white varietal supply emanating from southern France will be negligible and Spain’s supply will rise in price and sell out quickly; ditto for organic varietal whites. New Zealand, Chile and South Africa are all sold out on one or more of their 2021 international white varietals. Thoughts are thus turning to the 2022 crops: dryness in Argentina and Chile continues, though some late winter rains have come to the latter, while there are hopes for average or average-plus crops in Australia and New Zealand after wet winters. There have been no frost alarms – as yet. In the meantime, read on for detailed updates of each market, get in touch with us directly for ore 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 |
List of Locations
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