201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
Feeds
Ciatti Global Market Report, August 2022
The bulk market globally can be characterised as slow, even for what is a traditionally slow time of year when the Northern Hemisphere summer holidays are is in full swing. As well as there being few buyers, some already-acquired wine is being put back on the market by those who no longer need it; these wines are sometimes picked up quickly by an alternative buyer, sometimes not. The reappearance of inventory is potentially symptomatic of a range of factors – problematic shipping; dry goods such as bottles being in short supply and/or high in price; a real or projected slowdown in consumer sales as annual inflation rates remain high.
The inflation rate in the US fell in July, from 9.1% to 8.5%, as a decline in fuel prices offset a continued rise in grocery prices. Hopefully this a sign of inflation starting to cool, but in many other markets fuel prices and energy bills are projected to continue rising for the rest of the year. In the UK, the Bank of England expects inflation to reach 13% in October; Eurozone inflation was forecast at 8.9% in July; inflation in Australia is forecast to be 7.7% by the end of the year.
While the bulk market is currently muted on many wine types, it especially exacerbates the pre-existing slowness on red wine, inventory of which is large in many producer countries. Prices, however, are not necessarily softening, as suppliers must cover rising input costs. In addition, if buyers are reining-in their requirements or seeking to become sellers themselves, there may not be many potential buyers waiting in the wings even at lowered prices.
While other input costs are rising, shipping prices are – in general – moving the other way: data from supply chain advisers Drewry shows the average global price for a 40ft container has fallen for 24 consecutive weeks as of 11th August and, while at USD6,430/container it remains elevated versus the five-year average (USD3,613), it is now well down from the September 2021 peak (USD10,377). We are also finding shipping efficiency is improving at some ports and on some routes, though performance can be patchy. While the price of shipping is thankfully falling, on the horizon looms the prospect of longer shipping times as vessels reduce speeds to meet new International Maritime Organization carbon intensity standards, which come into force in 2023.
Some harvesting is now underway in the Northern Hemisphere. Despite enduring one of the hottest summers on record, the crops in southern France, Spain and Italy still appear to be on course for approximately average sizes. California, meanwhile, tentatively expects a crop size below average, though by how much is still unclear. While Europe has been sweltering, parts of the Southern Hemisphere have been – to much relief – experiencing its wettest summer for many years, with Australia, Argentina and Chile all seeing their precipitation deficits slashed, dams nearing capacity and, in the latter two countries, good snowpack levels finally being put down in the mountains. The Western Cape has so far been experiencing a drier than average winter, but has had a wet 12-15 months overall, and there are still three more months for rain to fall before the dry season.
Anticipating and projecting what will occur on the bulk wine and grape markets in the final quarter of this year, once the Northern Hemisphere is back from its summer holidays, is highly challenging, let alone what 2023 may hold. All the more reason to get in touch with Ciatti who can draw on decades of experience to help you navigate the current and future marketplace. In the meantime, read on for detailed updates from each market.
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
Facebook feeds
Profile Picture