201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, September 2022
This year, more than normal, August and the start of September felt like a holding period while the Northern Hemisphere harvests commenced and their likely respective sizes are assessed. The slowness of the bulk market in many countries – persisting for 2-3 months, brought about by the inflationary picture in key markets, perhaps too a lag in the shipping of already-contracted volumes – suggested only crops significantly down from their averages would stimulate activity. We have seen something of that in California, where an already light crop was hit by a week of extreme temperatures at the start of September.
Europe, however, has remained largely unmoved, as the crops in France, Spain and Italy appear to be coming in below their averages but not significantly so. Red wine carryover is large in Europe and across the world. Whites are in healthier supplydemand balance, and the Languedoc’s bulk campaign for the white varietals kicked off early and quickly as many buyers possess little or no 2021 carryover. There is no clear trend on 2022 bulk prices in Europe, with pricing on southern French whites having fallen back somewhere between their 2020 and 2021 levels, while Spanish pricing is steady, with a small uptick in grape pricing offset by lower demand from Italy where, in turn, 2022 white wine production looks good and pricing has softened.
As this month’s Italy page states: “The next big task will be to understand how much wine consumption is going to be affected by inflation and the economic instability during the next six months.” Inflation has doubtless already led to consumer belt– tightening, while high energy prices come the European winter could dampen consumption further. Wine sales in the premium categories of the US market appear to be slowing markedly, falling into line with the entry-level categories which fell back quickly after COVID’s pantry-stocking boom ended; the on-trade appears to be slowing down after its post-COVID bounce-back.
There seems to be a loose consensus that inflation will peak in many markets at the end of this year, may even have already peaked in some, while others are actively working to repress it through direct intervention: the UK government is to spend at least GBP100 billion capping energy bills through to 2024, for example. As the bulk market has been proceeding conservatively for some months now, things could change rapidly if the economic/consumer outlook improves and gaps in supply suddenly need filling.
Recent falls in the oil price have helped keep inflation in better check, especially in the US, but another upward pressure on inflation is high food and dry-good prices which – and the wine industry has been all too aware of this – is partly attributable to very high shipping costs. In a world interconnected by loops of shipping lanes, high container prices and added surcharges – together with container shortages still not fully resolved some months after the pandemic – can only serve to help keep inflation at an elevated level. Shipping’s importance in this was illustrated by the French government’s request to France-based CMA CGM to lower its prices as part of efforts to curb inflation. Such high shipping prices put immense pressure on both the buyer and seller to make a transaction work, in bulk wine as in any industry. It may be time for shipping companies to play a part in easing the business cost burden, for the good of the global economy.
As we move towards the final quarter of 2022, market uncertainty – in the main – persists. Get in touch with Ciatti, who can draw on decades of experience to help buyers and sellers alike to anticipate the future marketplace. In the meantime, read on for detailed updates 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 |
List of Locations
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