News
Region Specific Report - August 2012
February 7, 2013 - 15:46
The Winemakers Federation of Australia has released the 2012 Vintage Report and the estimated tonnage for the 2012 vintage has come in at 1.66 million tonnes, up 4%
from 2011. Other interesting notes from the report show that Shiraz has again overtaken the top spot from Chardonnay by volume and grape prices show the first
signs of firming.
In the recent Wine Export Approval Report, the volume of Australian wine exported has declined 2% to 713 million liters. The total figure of these exports is currently valued at AUD $1.9 billion. Bottled wine exports have decreased by 12%, as companies continue to export in bulk in favor of bottling inmarket.
The value of bottled wines, however, is at the highest level in four years at AUD $4.40/L, mainly due to the popularity of premium wines. The average bulk price is now at AUD $1.01/L, an increase in value of 4%. The export of red wine has declined by 3%, which may be a reflection of the 15% reduction of red wine produced in 2011 (a consequence of the poor season). China has also seen a slowdown in the export of Australian bulk wine; however, this has been offset with a rise in interest for bottled goods.
Source: Wine Export Approval Report: MAT June 2012
Posted in: Australia
Region Specific Report - July 2012
July 10, 2012 - 09:50
Activity in the Australian bulk market has been strong, as we see many clients (both domestic and international) seeking current vintage material for their programs. Volumes of irrigated red wine have been difficult to source and those that do have material are using this as leverage to move parcels of less desirable white wine, which are more in balance and readily available on the market.
Regional material from premium areas (Barossa Valley, Clare Valley, McLaren Vale and Coonawarra) has become popular, obtaining strong price points. Volumes are down in these
regions and there are limited parcels available compared to 2011 inventories.
New Zealand’s 2012 final grape crush figures has been totalled at 269,000 tonnes, down 18% from 2011. Phil Gregan, CEO of NZ Winegrowers has stated that “the 2012 vintage is very similar in size to 2010, but given sales growth in the past two years, the reduced crop will introduce a new tension to the sectors supply demand balance.” Based upon these figures, it is evident that in going into next year the focus will be on value and quality, rather than volume growth.
Pricing of 2012 Marlborough Sauvignon Blanc is now minimum NZD $4.00/L and many customary suppliers of bulk are finalising their allocations with the limited amounts available for sale. There is strong demand on the local market for Marlborough Sauvignon Blanc. Interesting figures have been released by New Zealand Winegrowers: Sauvignon Blanc is down 19% across all regions, Pinot Noir is down 25% across all regions, the Marlborough region is down 23%, the Waipara region is down 27% and Nelson is down 22% across all varieties.
Posted in: Australia
Global Market Update − July 2012
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
holidays.
Posted in: USA, Canada, Chile, France, Germany, Argentina, Australia, South Africa
Region Specific Report - June 2012
July 10, 2012 - 09:27
The Australian Bureau of Agricultural and Resource Economics and Sciences has predicted the 2012 wine grape crush to be 1.53 million tonnes; 80,000 tonnes lower than last year’s yield. The effect of the wet season from 2011 has caused issues for fruit set of the 2012 grapes, causing fewer bunches on the vine with smaller berries and therefore more concentrated flavor. The ABARES are also forecasting the harvest next year to increase by 5% to 1.61 million tonnes. Another premium Australian wine has been released at record price. The 2007 Parawa Estate Ingalalla Grand Reserve has been released at AUD $1100 per bottle but will only be available offshore. Produced by the prominent Winestate Magazine owner Peter Simic, the wine will not be available in Australia, as the supplier feels it would be a conflict of interest to release the wine in the domestic
market. Instead, the wine will be available to affluent buyers in Asia, particularly Singapore, China and Hong Kong. The majority of the wine blend is a Bordeaux blend - 35% Cabernet Sauvignon and 30% Petit Verdot. This exceeds the pricing for Australia’s other prestigious wines which include the recently released Penfolds Bin 620 at $1,000 per bottle, Torbreck’s The Laird at $700, Penfolds Grange at $600 and Hill of Grace at $595.
The Australian Government has announced new changes in the Federal Budget, preventing producers from claiming the Wine Equalisation Tax Rebate twice. Wine producers have previously been able to purchase bulk wine from suppliers and sign over the rebate. Subsequently, the buyer will then combine this material with other parcels and claim the rebate for the overall blend, thus effectively acquiring the rebate on the same wine twice. Removing this loophole expects to save the government $10 million. The release of the budget has also provided $2.1 million to Wine Australia to assist in the focus of wine export opportunities to Asia. Australia is to release the world’s first high pressure sparkling screw cap. A joint collaboration between Guala Closures, O-I and DeBortoli has produced the ‘Viiva.’ The screw cap, which is similar to a standard aluminium closure, can be used on a large range of pressurised wines. However, it will not be strong enough to keep a lid on traditional method champagne. Although the twist of the screw cap does not provide the signature ‘pop’ desired by the romantic few, many are enticed with the elimination of cork taint and the ability to reseal the bottle.
New Zealand grape growers are completing the final stages of picking for the 2012 crush. Pricing for the 2012 NZ Marl SB has increased dramatically in the past few months, with reports that bulk material will be around NZ 4.00/L. This is a substantial increase from last year’s pricing, which ranged from NZ 2.80/L to 3.30/L. Reports on the size of the 2012 crop predict the crush to be down approximately 30% in volume, hence the high spike in bulk prices.
Posted in: Australia
Global Market Update − June 2012
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
to success.
Posted in: USA, Canada, Chile, France, Germany, Argentina, Australia, South Africa
Australian Wine Exports Continue to Shift to Bulk Shipments
May 7, 2012 - 09:57
A volume decrease of 7% has been recorded for Australian wine exports in the last 12 months. However, we have seen the average value of both bulk and bottled wines increase. This includes the volume of bulk wine shipped in the higher priced brackets, such as the $1.00+/L segment rising, whilst exports dropped in the lower <$0.50/L section. The shift towards exporting in bulk versus bottle is shown in recent figures as bulk shipments have overtaken the volume of bottled shipments for the first time. These factors remain consistent with many producers bottling their goods in-market.
Source: Wine Australia – Wine Export Approval Report – MAT March 2012
Posted in: Australia
London International Wine and Trade Fair
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.
Posted in: USA, Canada, Chile, France, Germany, Argentina, Australia, South Africa
A Land of Flooding Plains
April 10, 2012 - 10:01
One of the main grape growing regions of Australia, the Riverina area, has been subject to widespread flooding affecting vineyards, wineries, homes and livestock. There are concerns for the grapes left on the vines after 160mm of rain in early March. Growers were frantically pumping water from their vineyards as they attempted to pick the remaining good material from the vines, but they faced challenging conditions accessing muddy crops with heavy machinery. While many growers were able to pick the remainder of the reds after the waters receded, there is concern about the quality of the wine due to botrytis infection in some fruit.
Posted in: Australia
2012 Bulk Wine Prices on the Rise
March 7, 2012 - 10:38
Speculation continues about the size of the 2012 crop from Australia, with various mixed reports. Due to grape price increases buyers should expect a rise in bulk wine cost. The level of increase remaining uncertain until the reds are picked and final figures tallied. Many suppliers are reluctant to give definite prices and available volumes. Exceptional quality is expected for this vintage due to favorable weather with little humidity or rain and warm days and cool nights resulting in strong varietal character.
Posted in: Australia
Ciatti Company at Prowein, Germany 2012
March 1, 2012 - 11:24
The Ciatti Company Stand is in Hall 6, Stand 6F35 at Prowein 2012. We look forward to seeing you there!
Posted in: USA, Canada, Chile, France, Germany, Argentina, Australia, South Africa