201 Alameda Del Prado, #101, Novato, CA, United States of America, 94949
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Ciatti Global Market Report, June 2023
Bulk wine pricing around the world is generally in a stable to softening trend as a number of downward pressures on prices offset the upward pressure from elevated input costs: the stop-start nature of buying activity in most markets; some large inventory levels – primarily of reds – in Argentina, Australia, California and France; lower 2023 grape prices in Chile versus 2022; a larger than expected 2023 crop in New Zealand; Rand weakness in South Africa. It should be underlined that buying activity continues, but much of it is for short-term needs, with buyers seeking smaller volumes for quicker loading.
The slow nature of most consumer sales channels in most countries has disincentivised the opportunistic buyers who might normally – especially with freight costs greatly reduced and logistics efficiency markedly improved versus a year ago – come into a long market and get creative with new brands. Instead, winery focus is on inventory adjustment, assessing which brands are distractions to profitability, and – in some instances – brand or wider business rationalisation. The assessment of this month’s California Report could easily apply internationally: “Wine and grape markets [are] shrinking overall, potentially leading to lower need for wine and grapes over time.” Vine pull-outs are back on the agenda in a number of producer countries.
The California Report also outlines two contrasting potential responses from wineries to the current market dynamic. One is to discount pricing, which may boost sales in the short term but also reduce or remove margin in the long term. The other is to raise prices and invest in marketing – which may have greater cut-through now, when rival brands are reducing their own marketing spend – in order to grow a brand long term. However, this requires financial outlay, and few businesses are currently willing or able to do that.
The real challenge for the global wine industry, as this month’s Italy page says, is to “reinvigorate the perception of wine as a daily part of a healthy lifestyle once again”. Such a change, if it can be brought about, is likely to take some time. Until then, many of the current growth areas seem to be to one side of the mainstream of the market: low- or no-alcohol wines, organic wines, canned wine (increasingly using and marketing with more premium, varietal and vintage specific wines such as “Loire Valley-2021-Viognier”), wine-based spritzer drinks (dovetailing the canned wine, sparkling wine and low-alcohol trends together), and wine-based cocktails (such as Sangria: see this month’s Spain page for more information). Canned wine cocktail/spritzers brands often make a virtue of their transparency (“Four simple ingredients: white wine 50%, sparkling water 40%, tonic 9%, natural lemon and lime flavours 1%”) to attract younger, health conscious consumers.
Buyers with or without funky new products up their sleeve can currently find some excellent wines from a price-quality perspective on the bulk market – generic, varietal, conventional, organic, low-alcohol – with which to fulfil their brands in both the short and long term. Some specific wines are in low supply, and all suppliers are seeking to cover elevated input costs, so bulk prices – where they are trending softer – do not presage a race to the bottom. For the very latest buying and selling opportunities, get in touch with Ciatti direct; the team can draw on its many decades of experience to help you identify growth. In the meantime, read on for detailed updates on 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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