201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, April 2024
The bulk market has experienced its second consecutive month of noticeably more normal activity levels following last year’s stark slowness. Much of the activity has been generated by generic white wine and its apparent shortness and/or increases in price in Spain, Italy, Chile and South Africa. Italy’s shortest harvest in many years led to a lack of supply and high prices there and in Spain, in turning upping demand in France as well as European need for Chile’s generic white – just as crop expectations in the generics producing north of the country are very pessimistic due to acute drought.
South Africa, meanwhile, is on course for its shortest harvest in 22 years, constraining its generic white offer, especially given strong domestic demand. In fact, all of the major Southern Hemisphere producers are on course for shorter-than-average harvests owing to a combination of climatic issues, vine removals, or uncontracted vineyards going unmaintained. Alcohol levels are expected to be down in both Argentina and Chile. Whether by Mother Nature or human hand, the global bulk wine market is getting the Southern Hemisphere crops it needs to restore some supply-demand equilibrium, at least on whites.
The red wine market remains more muted by comparison. The big news for the market came at the end of March, when China – finally – ended its 200%+ tariffs on Australian wine imports, effective from the 29th. China-based and domestic enquiries into Australia’s 2022 and 2023 Dry Red, Shiraz and Cabernet immediately rose; pricing has since started to firm up. This may, in turn, make red wine export prices in other countries appear more attractive by default.
Shorter Southern Hemisphere harvests, and the simultaneous return of a significant consumer market – China – to the wine-buying fold, help create the appearance of better bulk wine demand versus 2023. But it remains questionable how sustainable this appearance will be if the Northern Hemisphere crops perform average or better, all the while North American and European consumption remains subdued. As US wine industry analysts SipSource recently concluded, a “strong consumer pull would ease our pain” but a “significant move to increase inventory at retail” currently looks unlikely. With the US and Eurozone economies staggering on, and the UK technically in recession, it seems unlikely 2024 will bring concerted momentum in retail sales. Bulk wine buyers are increasingly using the just-in-time model to help ensure they only buy the volume a programme definitely requires while minimising storage costs. In the often-prolonged periods between sales, many wine companies are struggling for cashflow and are rationalising operations. Many growers, meanwhile, are considering grafting over or removing uncontracted vines.
Identifying sourcing and selling opportunities that provide margin and cashflow is where the Ciatti team can bring 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 |
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