201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti California Market Report, July 2024
Following a pleasant May and early June, much of California began experiencing a record heat spell in late June through the first half of July. The prolonged heat may potentially have slowed sugar accumulation and slightly affected yields in the vineyards, but as the growing cycle was running up to three or four weeks ahead of where it was in 2023, and water supplies are good after a wet winter, the heat is not yet – as of the time of writing on July 15th – a significant concern.
With the arrival of some intense heat disincentivizing canopy thinning, and many uncontracted vineyards being minimally farmed, growing areas have appeared green and lush. Mildew pockets have occurred across the state, as per normal, but in general vines seem in positive health. The crop potential in most areas seems to be at least average; there remains plenty of time, however, for Mother Nature to have her say.
Activity levels on the bulk wine and grape markets in June continued the uptick seen in May. The great majority of this activity consisted of inquiries only, as prospective buyers – many of them smaller operatives identifying market niches for specific private labels and other programs – assess the potential opportunities. Second-quarter case-good sales numbers remain unclear and third-quarter figures are mere conjecture at this stage, plus there are still some weeks to go before harvest. Consequently, buyers and sellers alike have good reason not to rush into any decisions. That said, bulk wine and grape prices have continued to soften and deals intermittently occur when motivated sellers – requiring cashflow and/or storage space – intersect with opportunistic buyers on price. Buyers, enjoying plenty of choice and increasingly operating on a just-in-time basis, rarely enter into price negotiation.
We caution that the more positive mood music emanating from a number of recently-released reports and articles – essentially that case-good sales volumes may stabilize sometime this year – is mainly based on forecasts and assumptions, not – as yet – hard numbers. It is too soon to read anything into the aforementioned recent uptick in bulk wine and grape inquiries; it could be normal pre-harvest prep.
Some believe the extent of the retailer-distributor destocking over the past 18-24 months, and the number of vineyards that have been – and are continuing to be – removed, amount to an overcorrection, so that any market rebound will be rapid when case-good demand stabilizes. That is speculation and, even if it proves to be the case, no one knows when the rebound will occur. In the meantime, many suppliers will struggle for cashflow or to make payments on time, will resize operations or remove vines, or attempt to sell their businesses on a viticultural real estate market that naturally mirrors the wine market: few transactions, reduced prices.
Read on for our detailed assessment of how things stand and – for the most up-to-the-minute information – get in touch with Ciatti directly. The broker team includes industry professionals with over 135 years of collective experience, ready to help buyers and sellers alike navigate through this challenging period.
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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