February 7, 2013 - 15:50
The official 2012 harvest volume has been released, showing the 2012 crop to be the largest in history at 1.1255 billion liters. This is 20% bigger than the 2011 harvest of 1.046
billion liters. Of the 2012 crop, 80.9% are varietal wines, 13.7% are generic wines and 5.4% are table wines. By varietal, Cabernet Sauvignon makes up 33.3% of the total
volume with 339 million liters, followed by Sauvignon Blanc 13.5% (137 million liters), Merlot 11.9% (121 million liters), Chardonnay 9.3% (95 million liters), Carmenere 8.4%
(85 million liters), Syrah 6.7% (68 million liters) and Muscat of Alexandria 3.3% (34 million liters).
July was a very dry and sunny month in Chile, due to "La Niña". The highest temperature of the month was on July 18th at 28.4ºC / 83.1ºF. This is the highest July temperature that Chile has seen over the last 23 years. "El Niño" is expected to arrive in August and ease some of the drought.
• Total wine exports increased in volume by 16.9% over the last year. Case goods exports continue on an increasing trend (March -3.9%, April -1.1%, May +2.1%, June +3.7%), along with bulk wine exports (+53.9%).
• The most appreciated currency against the US Dollar in 2012 has been the Colombian Peso (7.52%). Following the Colombian Peso has been the Chilean Peso (5.02%).
• Prices remain stable, with the exception of basic Cabernet Sauvignon and basic Sauvignon Blanc.
Posted in: Chile
July 10, 2012 - 09:52
Harvest ended several weeks ago and wineries had until June 29th to make their final crop volume declaration. The official volume will be released by the end of July and expectations are for a crop that will be 10-15% larger than the 2011 harvest. Despite a strong crop, Muscat, generic white wines, and crushed table grapes have come in short, while Sauvignon Blanc has come in long. Due to these factors, growers are hesitant to give definitive volume estimates.
Domestic and international sales remain slow, despite continued buyer activity. Most purchases have been of varietal wines, causing concern for suppliers of basic and generic wines, who still need to clear their 2011 inventory. Varietal wines are experiencing stronger sales due to greater consumer demand over generic wines, despite the cheaper price of generics. Varietals with limited inventories include generic white, Muscat, Pinot Noir and Malbec.
Posted in: Chile
July 10, 2012 - 09:47
July marks the middle of summer in the Northern Hemisphere, and expectations are for healthy crops across all of the major producing regions. After a disappointing 2011 crop, especially in California and Italy, a larger crop would be welcome relief to many buyers in the bulk market. Prices moved higher at a rapid pace in California over the past twelve months. It appears that a plateau has been reached, and some pricing softness exists for certain varieties in the commercial growing areas. Italy looks to rebound from last year’s small crop, which should help take some of the pressure off of the recently overheated market in Spain. French producers in the Languedoc saw a larger than usual crop in 2011, and are still looking to move some white inventory. The economy in Europe continues to be a cause for alarm in the bulk market, as buyers continue to send messages of concern about pricing and corresponding consumption levels.
Wineries in the Southern Hemisphere continue to push along, with strong sales reported in Chile and Australia. Argentine suppliers continue to move forward with good sales on Malbec, Muscat and generic varietals. New Zealand pricing has continued to head in an upward direction, as the 2012 crop proved to be too small to cover the market demand. South Africa continues to be a favorite destination for buyers in Europe, as the Rand and the larger than normal white grape harvest, have allowed for strong buying opportunity. Overall, the market seems to have cooled slightly, after the extreme highs experienced over the past twelve months. It remains to be seen whether this is a trend, or simply a seasonal lull, as many players in Northern Hemisphere are now deep into their summer
July 10, 2012 - 09:30
Harvest is coming to an end with only a week left in some areas. The 2012 crop is larger than earlier estimates, but the official numbers will not be released for a few months. The weather conditions were excellent this harvest, without any rain at all. Wine exports have increased 16.3% from the previous year. Cased goods exports keep showing an increasing trend (March -3.9%, April -1.1%)
Bulk wine still makes up a significant share of the export market with 96.4 million liters in the first four months of 2012 and a growth of 62.7%. Although this harvest has been one of the largest in recent years, some varieties such as dry white, Muscat, Pinot, and Malbec are short. Merlot and Chardonnay yields remain average, while entry-level Cabernet Sauvignon and dry red wine are in surplus.
Posted in: Chile
July 10, 2012 - 09:22
During the past two years of producing this update, we have seen the global economic world
continue to remain in a state of flux. Nimble producers that have kept a flexible sourcing model in
this evolving world continue to prosper.
Currently, European economic concerns dominate the headlines; opportunities have now
presented themselves in the bulk wine markets. As investors move away from the euro, and
towards the relative safety of the dollar, the resulting gain in dollar strength has made several
import markets more appealing. Wine from South Africa has attracted the most attention as the
SA rand dropped significantly in value against the rebounding dollar. Chardonnay and dry white
wine seem to be attracting the most interest from buyers today. The Australian dollar and Chilean
peso have also seen relative weakening against the dollar, and wines from those countries are
beginning to tempt buyers as well.
The Southern Hemisphere harvests are all winding down, and it appears that we have mixed
results. South Africa and Chile look to be above average, Australia is reporting an average
harvest, and Argentina and New Zealand have come up short. Producers are starting to make
estimates in the Northern Hemisphere, and it is believed that California is looking at a larger than
average 2012 crop. Recent storms in France have impacted several areas with varying degrees
of crop damage and the extent of the damage is yet to be determined but could affect future crops.
Germany and Spain have been experiencing mild temperatures and minimal rainfall. This has
allowed for good bud break and fruit set, which should result in an average crop for both countries.
While uncertainty remains regarding supply availability, activity remains strong, and prices are
holding in most markets.
A big plus for all of us in the global wine industry is that demand for wines around the world
remains relatively strong. Consumer thirst for wines from well-known producers in both new
brands, in addition to tried and true labels, continues to grow. Paying close attention to all
economic, supply and demand factors, as well as remaining agile, seems to be the current key
May 7, 2012 - 10:07
Wineries have said that the last two weeks of April saw the greatest grape activity of the harvest. The harvest for white grapes is coming to end while red varietals (and possibly red table grapes) are at their peak. The 2012 crop is on track to be larger than the 2011 crop, and is expected to be larger than earlier estimations. Despite a bumper crop on the horizon, grape prices are remaining high. The final price has yet to be fixed, but looks to be around CLP $250 per kilo, (freight and alcohol degree must be added before ending at the winery.) The long, hot summer was positive for grape growers and bulk producers remain happy with the 2012 weather conditions.
Posted in: Chile
May 2, 2012 - 10:15
The Ciatti Company will once again be attending the London International Wine and Trade Fair.
Please come and see the Global Ciatti Team at Stand Q6.
April 10, 2012 - 10:13
The grape market has continued to show strength as producers have held firm on pricing and prices have remained high. The summer season was recently declared the warmest in the last one hundred years, which resulted in an earlier than normal start to harvest. The harvest for white grapes was started two weeks ahead of schedule, with red grapes harvested much earlier as well. Winemakers have stated that this has been a difficult harvest, due to the quick ripening of grapes. With no rainfall during harvest, and none expected for the immediate future, the wines destined for the bulk market are the result of ripe and healthy grapes. Premium winemakers are experiencing slightly more challenging
conditions, as the balance of alcohol ripening to phenolic and organoleptic maturity was not optimal.
Posted in: Chile
March 7, 2012 - 10:40
The 2012 harvest began with Sauvignon Blanc, but by Monday, February 27, all major varietals in all grape producing regions were in the process of being harvested. The majority of grapes harvested have had a minimum guaranteed price, which will only be fixed in June and there has been a noticeable increase in purchasing of grapes at these fixed prices. The expected final volume is still unclear, but appears to be similar to last year. The drought appears to have had a negligible effect on the harvest, but it will not be known until March.
Posted in: Chile