201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti California Market Report, November 2021
California’s 2021 harvest is effectively complete, with the final areas of the Central Coast due to finish picking in recent days. The Central Coast experienced lower than normal temperatures throughout much of the growing season and consequently picked well behind the rest of the state – a cool and overcast October meant development of sugars dragged on in some areas.
Yields varied, but in general the Central Coast crop looks to have come in average sized – up on last year and perhaps slightly up on 2019, performing better versus the average than the North Coast and Interior. The North Coast’s harvest was early and compacted, with volumes lighter than average to varying extents depending on area – Mendocino and Lake counties appear to have suffered larger shortfalls than Napa and Sonoma. Volumes in Lodi and the northern Interior ticked up on the later varieties – such as Cabernet – to help offset a lightness on the early ones, so that the total crop for this area ended up being approximately average in size. The southern Interior’s crop was early and light – this was mainly due to winter damage, though we believe vine removals in recent years are serving to lower the ceiling of potential production.
Most areas experienced resource challenges – trucking and labor shortages, increased input costs – but smoke at least was not an issue this year. The state’s August forecast of a total state crop of 3.6 million tons still rings true: We estimate 3.6-3.7 million tons.
As mentioned above, October was cooler and wetter than normal, with a storm track bringing record rainfall and flash flooding to some areas towards the end of the month. The flash nature of the precipitation means drought conditions remain, albeit slightly alleviated. The La Niña effect is still projected to cause dryness November through January, with the northern half of the state experiencing average precipitation levels and the southern half experiencing below average.
The bulk market continues to be muted while assessment of the 2021 vintage continues, OND sales are watched keenly and sales projections for the beginning of 2022 start to be formulated. The decline in the state’s overall inventory size versus recent years, especially in the Interior, has increased prices on the indemand California appellation, further limiting buying activity. Inventory sits disproportionately in the Coast, with 2020 Coastal carryover affected by smoke exposure perceptions and pricing on 2021 wines potentially too high to supply the current California appellation sweet spot. The growth of the ‘premium California’ appellation may offer opportunities for Coastal wines to act as supply, but the bulk pricing will still need to be at levels many Coastal suppliers will find uncomfortable.
With upward price pressure on all inputs, we are seeing some wineries increase retail prices on their brands in order to maintain margin. This is likely to be one of the ongoing stories of 2022: How will consumers – already feeling inflationary pressure – react to noticeably higher wine prices on the retail shelf? It is inevitable that some sales projections will be adjusted downward and, in turn, some extra supply may pop up on the bulk market. In the meantime, whether you’re a buyer or a seller we are here to help you navigate the twists and turns of the postpandemic environment and beyond: Don’t hesitate to get in touch if you need our assistance, 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 |
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