201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, January 2024
With a new year underway, we at Ciatti wish all of our friends, clients and business associates a very happy and prosperous 12 months ahead. Many thanks for your continued support.
If 2022 was characterised by rising annual inflation levels and a supply chain crisis, 2023 will be remembered for interest rates rises and sluggish buyer demand. Inflation levels, and the interest rates increased to curb them, reined-in consumer confidence and discretionary spending in most key markets through the year. In turn, this reduced distributor and retailer demand for wine – many were, in any case, still working through inventories they had accumulated during the 2020-21 pandemic-induced consumer demand spike, or supplies that had only recently arrived after 2021-22’s shipping delays. Distributors and retailers also pushed back against bulk wine suppliers seeking to increase prices in order to maintain margin amid the inflationary environment. Consequently, bulk demand was slow and, when it did occur, transactions often took time, were price-sensitive, and only for incremental volumes.
Pushbacks against price always ultimately end up at the grape grower, and we saw vine pull-outs starting to occur in some producer countries as the industry begins to come to terms with the twenty-year decline in global wine consumption – a rightsizing that felt imminent during the similarly slow year of 2019, but which was put on hold by the pandemic. The second and third quarters of 2023 were especially slow: wine ‘need’ simply was not there. As this month’s Australia New Zealand page makes plain, “global wine production has been higher than consumption in recent years and 2023’s output is expected to have exceeded demand by approximately 10%, even with output coming in below average for the fifth year in a row.”
Activity levels rose a little in the final quarter, stimulated by Italy’s short crop and some softening bulk prices elsewhere. What can we expect from 2024? The US, UK and Eurozone (including Germany and France) all come into the new year with consumer confidence at higher levels than for some time, as annual inflation steadily trends downward and interest rates – although still elevated – are subsequently expected to follow. On bulk wine as on many other products, the ‘justin-time’ business approach, in which inventory-holding and speculative buying is kept to a minimum, has grown more common during the higher-cost environment of recent years, and is likelier to increase in 2024 than reduce.
If distributors and retailers are now moving clear of their pandemic inventories or have been proceeding with lean stocks over the past year or two, any uptick in consumer demand might fairly quickly translate into fresh bulk need. Further incentives for buying are the many attractively-priced opportunities on a range of quality wines that currently exist, together with a – in the main – return to prepandemic shipping prices and schedules. Therefore, the year 2024 arguably starts with more glimmers of hope than its predecessor.
The Ciatti team stands ready to draw on its many decades of experience to help buyers harness the opportunities, while assisting suppliers in finding good homes for their grapes and wines: don’t hesitate to get in touch. In the meantime, read on for our review of 2023 by country, and some tentative projections of what 2024 might bring.
Read the full report
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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