201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti California Market Report, May 2022
April brought some welcome rainfall to California’s Coastal growing areas: Up to five inches fell in some locations but, in most, rainfall was sufficient enough to get things looking nice and green but not enough to meaningfully replenish water reserves. Indeed, we are hearing that water usage curtailments in some Coastal areas will start in May, and allocations for the federal Central Valley water management project could be at 0%.
Given the ongoing drought conditions, tentative early expectations are for a 2022 crop shorter than average, though we have been seeing – and receiving reports of – healthy-looking vineyards with good cluster counts and sizes. The picture will be a lot clearer in June once veraison is underway. The Central Coast and Central Valley are slightly behind last year in terms of degree day accumulation, a reflection of the forecasted cooler-than-normal spring.
The early morning hours of April 12th brought a frost episode that had a patchy, localized impact on vineyards across the state, but was more concerted in areas of the Delta, including in parts of northern Lodi, Clarksburg, and Dunnigan Hills. Vineyards situated in the Sierra foothills were also concertedly affected. The impact will have been felt most on the white varietals which were the most advanced; areas such as Clarksburg produce a lot of white grapes and Pinot Noir. While the frost incident is unlikely to significantly reduce this year’s total state crush size, some vineyards in the Northern Interior have been severely impacted and, in turn, the individual wine programs that heavily rely on grapes specifically from this region. Some buyers have consequently acted quickly to replace lost tonnages by sourcing additional grapes or 2022 bulk wines, while others may still be exploring options. Parts of Oregon were visited by the same frost episode, leading to some inquiries from there into the possibility of replacement grapes or wines from California.
As you will read in this month’s report, beyond this activity uptick driven by the frost, the grape and bulk wine markets are proceeding steadily: Outside of specific appellations and varieties, the markets are in a settled state, pervaded by buyer wariness while the upcoming crop potential and consumer sales are assessed. The crop potential should become clearer during berry-sizing in June, but sales trends might remain foggy for longer, as post-pandemic demand mingles with a dawning economic realism as annual inflation passes 8.5%. We are in for a period of what Beverage Alcohol industry analyst Danny Brager has called “messier” data, due to all the COVID-related channel shifting, and the comparisons versus prior years since COVID. NielsenIQ scan data shows wine’s US off-premise dollar sales were up 4% in the first three months of 2022 versus the first three months of the last ‘normal’ year, 2019, but this was down from 14% growth in Q1 2021. The first quarter of 2022 saw Sauvignon Blanc (+13% versus 2019) and sparkling (+22% versus 2019) especially help to offset some flat sales (Chardonnay, Pinot Grigio) or declines (namely Merlot, -15%) versus 2019.
Uncertain crop, rising costs, messy sales data. The market is currently challenging to navigate, but the Ciatti team stands ready to draw on its decades of experience to help you do so – don’t hesitate to get in touch. In the meantime, read on for more on the bulk wine and grape markets, 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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