News

Spanish Bulk Stock in Short Supply and Possible Future Effects

February 13, 2012 - 16:44

Previously we mentioned that sizeable cooperative cellars were starting to see dramatic stock decreases; this is now a reality with the threat of shortages looming for cooperative
cellars while negociants carry ample supply. In some regions such as Utiel-Requena (Valencia) stocks are rapidly decreasing. In Mentrida (Toledo), according to some estimates, only 3M liters of wine remain available for sale. In Ciudad Real, one of the biggest producing regions, the large first-hand, single lots of Merlot, Cabernet and even generic red are almost all committed to negociants. Generic Rosé stocks are also very low and finding single lots over 200,000L is becoming a challenge. As a result, industry insiders expect lower availability in the coming years of Reserva & Grand Reserva (wines which are barrel-aged for 2-3 years) in bulk as a fair amount of these wines will be sold in the “Tinto Joven” or “young red wines” category. This requires less barrel-ageing, allowing for the wine to be commercialized quickly therefore easing supply shortages.

Posted in: France

2012 Harvest Has Started Well

February 13, 2012 - 16:37

Wineries are getting ready for the 2012 harvest that will be in full swing by the first week of February for most wine producing areas. Warm conditions in the latter part of January sped up the ripening period and a good to average crop is expected for 2012, with high quality wines given the favourable ripening season.

Posted in: South Africa

Italian Bulk Wine Prices Continue to Rise

February 13, 2012 - 16:36

Bulk wine prices continue to increase as has been the trend since the 2011 harvest. For many Italian suppliers and buyers, it has been a number of years since any of them experienced a market where the demand was greater than the supply. Market pressure is coming from various places: 1) bottlers who keep continuously buying and loading 2) concentrate activity, and 3) distillers buying generics. It is still unknown whether current prices will affect consumption, especially in the domestic Italian consumer market where buyers are sensitive to even small changes in prices.

Posted in: France

Freezing Conditions Cause High Frost Damage Risk

February 13, 2012 - 16:33

The cold, high-pressure front famously known as “Cooper” continues to blow West from Russia, sending temperatures plummeting to -20°C (-4°F) for the first week of February. Until now, the winter weather has been very mild but these conditions prompted the first and last chance to pick ice wine, even if the remaining grapes do not look good. There is also a hefty risk of winter frost damage for the 2012 crop.

Posted in: Germany

French Market Prices: Overall Progress Seen in the First Month of the Buying Campaign

February 13, 2012 - 16:31

According to a recent study by the French Department of Agriculture, AOP wine prices saw a noticeable increase during the first month of the 2011 vintage buying campaign (8% compared to the Aug-Nov 2010 period). Prices increased by 15% for Côtes-du-Rhône, 10% for Burgundy and 4% for Bordeaux. However, the last few months, have seen prices stabilize, even if Burgundy and Bordeaux are still increasing. Average prices for IGP Wines (all colors) increased by 5% compared to the 2010 vintage and the price for VSIG (wine without geographical indication) increased by 8% overall.

Posted in: France

2012 Predictations Similar to 2011 Harvest

February 13, 2012 - 16:26

Until recently the quickly approaching 2012 crop was expected to be larger than average due to high bunch density but the last weight measures have come up light. Wineries and growers have lowered crop expectations and now expect a lighter harvest similar to last year. The grape market has seen increased activity, especially among bigger buyers, as wineries seek to secure fruit. Chile is also suffering through a large drought.

Posted in: Chile

Californian Bulk Market Shows Strong Competition For Buyers

February 13, 2012 - 16:23

The Unified Wine & Grape Symposium just concluded in Sacramento, California. This show is the largest of its kind in North America and was once again well attended by growers, vintners and suppliers. There was an overall exuberance from growers given recent grape trends and vintners with positive sales reports.

The California market bulk market remains strong, and with multiple offers on many North Coast wines, the buyer competition is fierce. The top end of the market is particularly tight for red wines, and we are actively pursuing suppliers. Export customers remain frustrated with the market in California, as the suppliers in the San Joaquin Valley are not able to fulfill all of the export demand. Some varietals in the Central Valley are more scarce than others, but it seems that in general, all varietals are in balance or short.

The Grape market is also very strong, with commitments being made earlier than seen in recent history. The competition for fruit is strong, and growers are enjoying prices that will likely lead to more planting.

Posted in: USA

Fingers Are Crossed For A Good Vintage

February 13, 2012 - 16:19

The Australian harvest is well underway and yields are expected to be down by 5 – 10%. Many growers are hopeful that that the weather conditions will remain reasonably dry for the remainder of the season albeit long-range forecasts predict above average rainfall for February and March. The main concerns are how much above average, and whether long periods of humid conditions will follow, negatively effecting quality. Currently, quality expectations are high and all are optimistic for the 2012 crop.

Posted in: Australia

Summer Storms Make Growers Nervous

February 13, 2012 - 16:15

The weather in January proved to be very challenging for growers, as numerous summer storms brought rain and hail to the San Juan & Mendoza regions. Growers and wineries are now nervous, and estimates vary as to the damage done. This translates into growers not wanting to quote pricing, or give any volume indications for the coming harvest. Many growers intend to hold this position until the end of February, or early March, when the harvest begins. The governing bodies of Mendoza & San Juan have not yet decided what percentage of grapes will be obliged to go to concentrate production, and the INV still has yet to announce its revised forecast for the end of February. It is already clear that most of the Criolla grapes will now go to concentrated juice production due to the combination of low prices for cheap generic white wines, and strong demand for concentrate exports to USA, Japan, South Africa, and Canada.

Posted in: Argentina

Unified Wine and Grape Symposium, Sacramento CA

January 16, 2012 - 13:09

The Ciatti Company will have a stand for the first time this year at the Unified Wine and Grape Symposium, in Sacramento, California. Please come and visit us at Booth # 1919 located in the West Lobby.

Posted in: USA

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