201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, May 2022
The wine industry heads to the first ProWein fair in three years experiencing – like every other industry – inflationary costs, a global supply chain crisis, and a shortage of dry goods. It is undoubtedly a difficult environment in which to do business, and fairs like ProWein can provide an important opportunity to gain clearer visibility of market pitfalls and thrash out workarounds in person – even before one takes into account the fact that, for two years, having such meetings has been very difficult due to the pandemic. See our ProWein Preview this month for more details.
The OIV’s latest ‘State of the World Vine & Wine Sector’, published in April, gave a preliminary global wine production figure for 2021 of 260 million hectolitres, in line with 2020 and slightly down from the ten-year average, with good-sized Southern Hemisphere crops offsetting the impact of spring frost in Europe. Global consumption, meanwhile, was estimated at 236 million hectolitres, up 0.7% from 2020, turning around a three-year downward trend but from a low base as consumption in 2020 was greatly affected by COVID-19’s arrival. In short, global production has remained adequate to cover consumption. This fact, plus the general consumption shift in some markets towards white wines – as well as the fall in Chinese demand since 2018 and the country’s imposition of import tariffs on Australian wines since 2020 – explains the generally slow market for red wines versus that for whites. Argentina, France, Australia, and Spain all possess big volumes of uncontracted bulk reds, at stable or softening pricing.
What about production this year? Chile’s 2022 crop is expected to be down approximately 10% from last year – but last year’s was bumper. Argentina is expected to have a below-average crop – but will have over 600 million litres of carryover at vintage switchover. South Africa’s crop looks in line with the ten-year average. Australia’s is potentially smaller, as some red grapes were left unpicked. New Zealand should report a crop size bouncing back from 2021’s shortness. In the Northern Hemisphere, meanwhile, a wet spring in Spain has allayed drought fears and brought confidence of a good-sized crop; April frost visited France but is currently expected to have had limited impact on overall crop potential; conditions have been good in Italy; ongoing dryness could limit California’s crop potential. In short, we’ve not seen anything – yet – to suggest any drastic changes to availability patterns.
This year’s consumption, however, is altogether harder to grasp. In broad terms, consumer patterns spent the second half of 2021 trending back towards their pre-COVID normal, with pantry-stocking moving into the past and the on-trade concertedly open again in the major consumption markets. By the Northern Hemisphere springtime, high inflation rates meant the “cost of living crisis” had replaced COVID-19 as the headline news topic. We are thus in an intermediate stage where an unleashing of pent-up consumer demand after two years of lockdowns is meeting rising awareness of inflationary pressure, a confluence of forces that is leading to churn. Consequently, there is some buyer hesitancy while they wait for the churn to pass and for the settled, long-term trends of our postpandemic world – at least into 2023 and 2024 – to crystallise. Ciatti can draw on its decades of experience to help you navigate the market, whatever it brings. Why not pop in to see us at ProWein? We’ll be in Hall 12, on Stand G24. It’ll 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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