201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti California Market Report - June 2024
A good time to harness some eye-catching bulk wine opportunities
Perfectly normal temperatures and precipitation levels for the time of year have allowed the growing cycle across California to adhere to a traditional timetable, if not move slightly ahead. Intermittent 90-100°F heat spells, post-bloom, have also helped ensure no lag; to varying extents, all areas are well ahead of last year’s delayed timing, for example by as much as three weeks in some areas of the Central Coast.
Vineyards appear lush, with plenty of canopy growth, given conducive soil moisture levels following the relatively wet winter. Berry sizing is underway and some lighter cluster numbers appear to be offset by larger cluster sizes. Looking ahead, viticultural climatologist Gregory V. Jones is forecasting few dramas: A slightly warmer than average June-August and an equal chance of slightly above or below average precipitation levels. There is still some way to go, but the crop potential currently looks healthy.
The final tonnage figure is likely to fall short of the crop potential as a percentage of grapes will go unpicked. There are more vineyards out of contract now than there were 12 months ago. Transactions on 2024 grapes have remained sluggish, although inquiries have risen in recent weeks. The activity that does occur is mainly confined to supply adjustments/extensions within pre-existing relationships. The grape market’s slowness has led to increased discussion about whether growers should crush their uncontracted fruit into bulk wine themselves; we address this issue later in the report.
The bulk market, meanwhile, felt more active in May versus the previous two months. Again, much of this activity was simply discussion, but there has been an uptick in spot market transactions – mainly incremental volumes for just-in-time needs. This uptick is potentially indicative of the respective price expectations of opportunistic buyers and motivated sellers moving into better alignment as another crop nears. Now is a good moment to harness some eye-catching bulk wine opportunities offering an excellent price-quality ratio: Prospective buyers are urged to get in touch with us to discover the newest opportunities. As BMO bank’s inaugural Wine Market Report recently said: “An abundance of affordable bulk wine and uncontracted vineyards offers opportunities for new brands and product innovation.”
Could this recent, limited increase in bulk wine and grape inquiries be symptomatic of the retailer/distributor destocking process nearing an end and the market bottoming-out? When and how that happens is yet to be seen, but we are seeing some companies changing their behavior.
This month our friends from Saxco return with their second bulletin on the market dynamics in the world of packaging, where there has been some big news. As we seek to extend and improve the California Report, we are open to suggestions from our readers: What subjects would you like the report to address? Don’t hesitate to let us know via your Ciatti broker or info@ciatti.com. In the meantime, read on for our latest assessments of the bulk wine and grape markets.
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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