201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, March 2024
The global bulk wine market is heading into the second quarter of the year looking more ‘normal’ than it has done for some months: rather than each market united in slowness, some have seen an uptick – however slight – in activity (Chile and California), some are unable to meet demand on at least some wines due to short harvests and/or limited carryover (Italy and South Africa), and some markets are mainly slow because of buyer perceptions that prices are elevated (Argentina, Italy, Spain). Buyer interest is there, it is simply price and volume-sensitive during what remains a fragile period for the global economy.
There have been strong indications that China will be repealing its import tariffs of up to 218% on Australian wine imports in the coming days or weeks, and there is a hope in other producer countries that the draining of some ultra competitively-priced Australian red wine into the Chinese market will help stabilise red wine demand and buyers’ pricing expectations globally. The not inconsiderable caveat is that Chinese demand for all international wines has been on a rapid decline in recent years – as some key red wine-producing regions of France can attest – and the country’s economy is currently struggling.
Another caveat is that just as Australia-China trade flows re-open, the Argentinian peso could receive another devaluation – widely seen as likely sometime mid-year – which will lower export prices on the 250+ million litres of carryover we estimate Argentina will possess going into June, of which the great majority is red wine. In addition, red wine supply in Spain could start to swell the global supply if prices on it start to soften.
White wines continue to be in a better supply-demand balance than reds, globally-speaking, though demand was starting to look somewhat lethargic in the second half of 2023, with availability higher than normal at the turn of the year and even high-quality varietal whites such as Marlborough Sauvignon Blanc struggling to find a home. Demand has picked up on Chile’s white varietals in the first three months of 2024, however, so that 2023-vintage whites are finally becoming sold out. In South Africa, signs of another harvest shortfall – following the very short crop of last year – have paused the market while wineries wait to see if they will have enough whites to fulfil new orders.
In fact, all the major Southern Hemisphere producer nations expect harvest sizes below average this year, potentially no bad thing for the health of the wine business as a whole given the current global supply-demand imbalance. It is a mixed outcome for growers battling squeezed margins: fewer grapes potentially mean a reduced income but also perhaps the ability to seek higher grape prices in turn. But for that, there needs to be a firm stabilisation in global wine demand which will only come once there is some belated, concerted macroeconomic strengthening in Europe and North America.
Identifying sourcing and selling opportunities that provide margin and cashflow in these challenging times: this is where Ciatti can bring its decades of knowledge and experience to bear. Don’t hesitate to get in touch. In the meantime, read on for detailed updates on 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
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