News
Italian Market Poised for Action
October 14, 2011 - 16:27
The Italian market hasn’t really kicked off yet for the new vintage as suppliers take their time to give quotes for the year. There is quite a bit of pressure in the generics market. We already know that the prices for Pinot Grigio and Primitivo will be higher than last year. The latest forecast from different Italian institutes confirms a lower 2011 crop: around 41 million hl/-13% (Confederazione Italiana Agricoltori) or 42.2 million hl/-10% (ISMEA and UIV)... far from the 46.7 million hl of 2010.
Posted in: France
2011 Spanish Supply will Remain Tight
September 12, 2011 - 17:05
Given current global demand for generic and varietal reds, 2011 Spanish supplies will remain tight (Spanish production is forecast to be 39 million hectoliters, of which 20 million hl is from Castilla La Mancha). We would recommend actively forecasting your future needs as early as possible. August 9th marked the beginning of harvest in Castilla La Mancha (CLM) with the picking of Chardonnay, Sauvignon Blanc, and Moscatel. Reports of the first red varietals harvested indicate that 2011 will be a good vintage, qualitatively speaking. The mildew pressure that plagued the CLM region this summer impacted on quantity, not quality. However, one indirect consequence is higher alcohol levels in the remaining grapes. Spring frosts and summer hail storms also affected the crop size, but only in very localized areas. Over the past month, a production decrease of -5 to -10 % was confirmed in the provinces of CLM, Galicia, La Rioja, Aragón, Extremadura and Andalucía, while a +5% increase was confirmed in Valencia, which has stayed very hot and dry during the last month.
Posted in: France
Italian Prices Trending Upwards
September 12, 2011 - 16:36
Since the beginning of the year, bulk prices in all of Italy are trending up. Small remaining bulk stocks are causing buyers to wait for new production, even if the harvest just started in certain regions of Italy. 2011 prices should be stable with an upward trend in the first few months. There is significant interest in Moscato (prices +70%) and Pinot Grigio
grapes, as well as for Prosecco and Primitivo (Zinfandel). These will probably be the best-sellers for the new vintage. A few international players are purchasing Moscato directly from Italy. The growth of this varietal is mainly driven by Northern bottlers who buy volumes from anywhere (Spain and France also) to supply international demand. Please note that new production in Sicily will decrease by 20% compared to last year due to the “green harvest” program. The same will be true for the Lazio, Salento, and Veneto regions.
Posted in: France
2011 French Harvest is Large and Healthy
September 12, 2011 - 16:30
A big crop is expected in France (~+2 million hectoliters). Stocks of white varietals are high. Sauvignon Blanc pricing has seen dramatic price increases and has priced itself out of the market, it is currently well above Chardonnay. As forecasted, a big crop is expected in Languedoc Roussillon- the grapes are squeezing out a lot of juice at the press! Out of a total French production of 48M hl, Languedco Roussillon will have 12M hl, 85% of which are varietal wines.
Prices are staying strong for the moment even if many players (brokers and buyers) are expecting a decrease after the first “obligated” purchase. Expect high prices for the first couple of weeks followed by a calming period for both reds and whites as production forecasts are confirmed.
Posted in: France
Spain's Wine Shortage Continues
August 8, 2011 - 11:52
2011 Spanish crop pricing : The first trends announce a +15% in value for white grapes and a +20% for red grapes. This means prices will tend to be similar to prices at the end of the 2010 campaign.
The shortage continues for wine supplies. In addition to low remaining stocks of white varietals, Merlot is now very difficult to find (only some small lots available). Wineries are in a comfortable situation with all volumes committed. The only unsold wines remaining are generic whites (of rather poor quality) that will most likely be distilled down. The 2011 harvest will start 10-15 days ahead of last year. Chardonnay will be picked in the next couple of days with the first wines ready-to-ship in one month.
MILDEW ATTACKS! According to the latest reports from Southern Spain, a significant portion of the vineyards suffer from mildew attacks (hot, arid days followed by fresh, humid nights mean increased mildew pressure). The principle grape affected is Tempranillo, which is the most planted varietal in the region. Up to 80% of the grapes were attacked in certain areas. It’s a bit early to announce exact figures, but this could lead to a significant production decrease (-10% in La Mancha, -30% in Andalusia, -20% in Extremadura Regions). This will be balanced by other regions’ positive figures (+5% in Moscatel production in Valencia).
Posted in: France
Will Italian Price Pressure Ease?
August 8, 2011 - 11:32
There should be less pressure on prices, but this is depends on the Eastern European countries’ crop, which being low last year, forced them to buy a lot of generic and varietal bulk wine from Italy. This is one of the many reasons why there were price increases in Italy. Vineyards are 2 weeks ahead of predicted harvest. Rumors predict a new plan for a big “green harvest” in Sicily representing about 9,000 ha.
MARKET ACTIVITY Primitivo as red or rosé is experiencing great interest from international buyers since they can label it as Zinfandel. This year the last lots available are around 57€ for Italian Zinfandel Rosé (other legal names include: Zinfandel Blush or Pink Zinfandel, but not White Zinfandel) and 60€ for Italian Red Zinfandel. There is also still a lot of interest for 2011 Moscato. Italy is also a big buyer of Spanish Moscatel which they use to cover their needs. Last 2010 lots available are at 48€/hL.
Posted in: France
French Vineyards 2 Weeks Ahead of Projected Harvest Dates
August 8, 2011 - 11:11
2011 prices for red varietals such as Merlot and Cabernet should start around 70-75€/hl. Sauvignon Blanc, which only represents 300,000 hL in Languedoc, was planted over the last 3 years, resulting in a rough increase of 1,400 ha. The additional plantings are mostly explained by its popularity in 2008, which was reflected by prices that peaked at >100€/hL. Now, production seems slightly disconnected from the market, as Languedoc holds large unsold volumes fetching prices for around 75-85€ as IGP Oc. Prices for the Vin de France category are slightly less expensive. Malbec already has a large amount of interest in the new crop. Prices will most likely start around 85-95 €/hL for the Vin de France classification, while the Malbec-AOP Cahors (the region with the largest production and legal ability to mark the vintage for US buyers) will start around 120€/hl for qualities similar to the Argentine styles.
Posted in: France
Strong Interest Continues for French Value Brands and Bordeaux Grand Crus
July 6, 2011 - 00:38
In Languedoc, there are concerns about the market effects of large volumes of wines historically classified as AOC Bordeaux being classified as Vin de France Merlot and Cabernet Sauvignon. This will mean price competition for Languedoc. However, by classifying less wine in the AOC category, this could be a way for Bordeaux growers to create demand for the AOC Bordeaux, allowing them to drive prices back up to sustainable levels (currently at 750Eur/900L barrel versus 900Eur normally).
Posted in: France
Spanish wines now in short supply due to strong demand
July 6, 2011 - 00:36
As expected and feared, June saw the first shortages of bulk wines in some Spanish wineries. Shortages are prevalent for all organic wines as well as conventional white varietals (Chardonnay, Moscatel). Some co-operative cellars have all red wines committed and are no longer quoting for new requests. Generic white stock level is still high and has shown little movement. Spanish producers and negociants are already starting to draw up 2011 pre-harvest contracts with repeat clients. Prices have slightly increased over 2010 but for the moment remain reasonable. Many wineries are waiting for harvest to begin before setting prices.
Posted in: France
The Italian Market continues to maintain the stability that has characterised the past few months
July 6, 2011 - 00:34
Prices for 2011 Moscato should be available within the next couple of weeks. There is continued pressure on Prosecco and Pinot Grigio.
Italy is the biggest exporter of wine in the world. This is mainly driven by white wines sold to Germany, UK, USA, and Russia in volume, and to Germany, USA, UK, Switzerland and Canada in value.
Posted in: France