201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, January 2022
As a new year begins, we at Ciatti wish all of our friends, clients and business associates a very happy, healthy and prosperous 12 months ahead. We thank you for your continued support.
As every January, this month’s report looks back at the year just passed and ahead to the new one. It is now approaching two years since the start of the COVID-19 pandemic and the virus is still with us, but there are two reasons for being hopeful that 2022 is the year it finally has its grip on the news headlines weakened. Firstly, vaccination and booster campaigns – well advanced by now in many countries – seem to be reducing mortality rates; secondly, the emergence of the highly transmissible but apparently milder Omicron variant potentially offers a pathway to a world in which COVID-19 can be treated as an endemic virus similar to flu.
Away from the virus itself, we see two of its knocks-on effects – the global supply chain crisis and rising inflation – as the biggest issues facing the wine trade in 2022. The worldwide shipping container shortage really made its presence felt in 2021 as economies began emerging from 2020’s pandemic shock, causing extensive delays and freight price inflation which had to be factored into potential bulk wine deals: could X wines get from Y to Z in one month, two months, three? Who would cover the increased freight costs? Wines can have their price attractiveness offset if they must travel badlylogjammed logistics routes, bringing more expensive but geographically less remote wines into play. Trucking, warehouse and port terminal capacity have also been widely inadequate in dealing with the return to full demand. The feeling is that consistent improvements in the supply chain situation are unlikely to be felt until the second half of 2022.
In addition to record freight rates, the wine industry felt a significant upward pressure on dry-good and other input costs in 2021, as part of inflationary factors at play in the wider economy. The US, the EU and the UK were all experiencing high inflation levels by the end of 2021 off the back of the supply chain logjam, labour shortages, and strong spending. And – in general – bulk wine prices come into 2022 at elevated levels versus where they were in January last year, with perhaps only prices on Australian reds and South African reds and whites consistently tracking below where they were a year ago.
The result for the wine industry is that, in 2022, it must move up on shelf prices to cover these rising costs just as consumers might begin to register wider price inflation and rein in spending. If or when this starts to occur in 2022 only time will tell. The European Central Bank believes current inflation levels are a passing “hump” that will decline this year; if true, and if the Southern Hemisphere’s 2022 harvests come in good-sized in the next few months, we can easily envisage some of the inflationary factors on wine dissipating. Ciatti is there to help you every step of the way in 2022, whatever it may bring – just give us a call. Happy New Year, 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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