201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, March 2022
The Southern Hemisphere harvests are in full swing and crop-size expectations vary from country to country: Argentina (frost damage, hailstorms), Chile (drought) and Australia (La Niña) are expecting smaller crops versus 2021, South Africa a crop in line with or just down from last year’s, with New Zealand’s bouncing back after 2021’s short output. La Niña has made for a cooler and in some cases more humid growing season than normal, setting picking back behind a normal schedule in many areas.
Southern Hemisphere bulk prices are – broadly speaking – trending upward due to a number of factors, each of which apply in some or all of the supplier countries: low or negligible carryover of white wines going into the new vintage; expectations of a shorter 2022 crop; inflationary pressure. Some price rises are modest, such as the 5-8% increase between vintages on South Africa’s good-quality varietal whites (despite strong demand), while others are more noticeable: Argentina’s prices have in March risen by an average of USD0.20/ litre across the board following serious February hailstorms in Mendoza’s East Valley, as well as a domestic 12-month inflation rate of 50%. At the same time, bulk wine buyers around the world are experiencing their own input cost rises and squeezed margins, and justifiably expect inflationary pressure to rein-in consumer spending as the year progresses.
The consequence is a disparity in pricing expectations between buyer and seller that will likely lead to more shorter-term transactions. As this month’s Italy page states: “This inflationary environment will oblige final buyers like supermarkets or big importers to change their future behaviour, probably fixing prices valid for less than six months.” A second year of spiralling sea freight prices and shipping delays – improvements are intermittent – is likely to test buyer patience; suppliers know this patience is finite and buyers may eventually seek alternative sources if they are able.
Looking further ahead, unseasonably dry winters in California, La Mancha, the Languedoc and northern Italy have raised question marks over their 2022 crops. It’s very early days but 2022’s global wine output seems unlikely to be bumper, but the economic headwinds businesses and consumers are going to face through the year are likely to be a drag on consumer demand anyway. Particularly since the outbreak of the Ukraine-Russia conflict in February, and its impact on energy prices, the dreaded ‘R’ word has been circulating.
But, as ever, even in difficult times opportunities persist: South Africa holds good supplies of premium Chenin Blanc which, at ZAR9.00-9.50 FOB, constitutes an excellent price-quality alternative to the other white varietals; Spain and Italy still possess some good-quality 2021 varietal whites, albeit diminishingly so; Argentinian Malbec has – as mentioned above – risen in price but any peso devaluation following approval of Argentina’s agreement with the IMF could slash the price in dollar terms; Australia’s red wine prices continue to soften following China’s imposition of import tariffs. Ciatti can draw on its decades of experience to help you find and harness such opportunities – don’t hesitate to get in touch. In the meantime, read on for detailed updates from each market, 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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