201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti California Report, February 2021
The California Department of Food and Agriculture’s preliminary 2020 crush figure, published February 10th, was in line with our pre-harvest estimate at 3,404,298 tons. This volume represents a 13% decline from 2019’s 3.91 million tons and is the lightest crop since 2011’s 3.34 million tons. The causes were Mother Nature’s lighter yields and – mainly in the Coast – smoke exposure issues that led to an unknown amount of the crop not getting picked.
Of the biggest varietals by tonnage, Chardonnay (-16.1% to 538,552 tons), Cabernet (-14.1% to 498,975 tons), Zinfandel (-14.7% to 297,726 tons) and Pinot Noir (-20.8% to 211,194 tons) all saw declines on 2019 to similar extents, with a smaller drop of -11.6% for Pinot Gris (to 218,326 tons) allowing it to overtake Pinor Noir as the fourth-biggest varietal. The state-wide average tonnage price came in at $680/ ton, down 18% from $831/ton in 2019 – something likely most attributable to the lack of a Coastal spot grape market in early 2020 and then discounted prices on a secondary Coastal grape market that emerged after the wildfires struck. The decline in the state’s average tonnage pricing on Cabernet (-30.4%) and Pinot Noir (-35.8%) were particularly significant. For a more complete breakdown of the preliminary harvest result, and more comment, see Ciatti’s press release here.
The lighter crop and concerns around smoke exposure created – in late summer and early fall – the second of last year’s two inflection points on the bulk market, following the spring surge in off-premise wine sales. Prices have since stabilized but, on the Coast on most varietals, at levels not seen for two years or so. The bulk market remains active and the month just passed was one of the busiest Januarys for many years, particularly in the Central Valley (where many suppliers are now out of their 2020 wines) but also in the Coast. It is getting harder to source premium older vintage wines but there remains availability, especially as wine continue to be diverted from on-trade channels into bulk instead, now that bulk inventory is an asset that can provide useful cashflow even for high-end producers. The active bulk market is leading to some discussions around longterm wine contracts and also – especially in the Valley – grape contracts, though of course forward visibility remains limited and most activity is tentative at this stage, not just because of the ongoing pandemic but in the knowledge an average plus 2021 harvest could change things.
Sierra Nevada snowpack levels are relatively good but winter rainfall levels across California have so far been significantly below normal. Portions of the state continue to experience long-term drought and the long-range forecast through until the end of April is for drier than average conditions. There is particular concern among growers in the southern Valley about this dryness and the effect it will have on federal water allocations should February through April not bring some replenishment of water reserves.
There is no denying that 2020 was a challenging year for all and those same challenges are still with us in early 2021. Whether you are a buyer or seller of grapes or bulk wine, don’t hesitate to get in touch with us so we can help you turn today’s challenges into tomorrow’s opportunities.
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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