201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, May 2024
The “consumption” section of the Organization of Vine & Wine’s recently published ‘State of the World Vine & Wine Sector 2023’ made for sober reading. Consumption in 2023 was estimated at 221 million hectolitres, down 2.6% versus 2022 and the lowest level since 1996. The growth gains made between that year and the consumption peak in 2007 have since completely unwound – despite the global population having risen by 1.5 billion in the meantime.
The OIV listed potential reasons for the contraction: a not inconsiderable drop in Chinese consumption of 2.0 million hectolitres per annum since 2018, pandemic lockdowns in 2020 (although this was offset by a rebound in 2021), and – since 2022 – energy crises and global inflationary pressures that have “exerted considerable pressure on consumer purchasing power”.
This assessment may betray some recency bias, as the decline in global consumption was already being discussed in the years before the pandemic. If the rise in Chinese demand through the late 2000s/early 2010s was to be removed from the equation, the global consumption decline since 2007 would have been even more precipitous. The underlying causes run deeper: the generally reduced level of discretionary spending power – ever since the 2007-08 global financial crisis – among the more affluent demographics that dominate wine consumption; the often higher cost of wine per serving versus rival beverages; increasingly strident health messaging; and lower interest in drinking alcohol among the Generation Z (born after 1996) and Millennial (1980) generations compared to their predecessors.
The OIV’s graph of the world’s vineyard surface area was not dissimilar to that of wine consumption: area peaked in the early 2000s at over 7.8 million hectares, before gradually falling over the past 20 years to reach 7.2 million hectares in 2023; again, the decline would have been more marked if not for expansion in China. However, the decline was within a narrow band, and the statistics include table-grape area, so it is harder to draw direct wine-related conclusions. Vine removals are certainly on the wine industry’s agenda now. Removals are happening for a range of reasons – for example, long-term drought conditions in northern Chile have meant some vineyards there have been abandoned, while the weak Rand and long-term cost pressures in South Africa have led to older vineyards going unreplaced. However, removals in Chile, California and France, at least, have also been occurring as a consequence of the global wine industry’s structural oversupply, a lack of need for certain wine grapes and/or the inability to sell them at a margin that makes farming viable. As such a supply “correction” is probably a necessity – just look again at that OIV consumption graph – it can be easy for some commentators to forget that such a correction impacts real people, their businesses and livelihoods.
Ciatti is committed to helping suppliers find homes for their bulk wine and grapes. This in turn benefits buyers, who know they are getting the full market picture and all the options. Identifying opportunities that provide margin and cashflow – that is where the Ciatti team can bring its decades of experience to bear: don’t hesitate to get in touch. In the meantime, read on for the latest from 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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