Better export figures
Some exporters have experienced a better year. Shorter European crops in 2023 were followed by shorter Chilean and South African crops in 2024, tightening availability of generic and varietal whites that were already in better supply-demand balance than red wines. Versus disappointing sales last year, Spain’s total wine exports were up 3.6% in January-May and Chile’s were up 14.1% in January-June, driven by the need for whites.
Italy’s white wines continue to perform well on the export front: 2023 Pinot Grigio IGT is sold out and Prosecco bottlings in January-July were up 5.7%. Meanwhile, Australia’s total export volumes in the country’s financial year to 30th June were kept in line (-0.2%) at the last minute thanks to the removal of China’s punitive import tariffs in March, otherwise shipments would have been closer to 5% down.
Fundamentals the same
That said, buyers around the world have been continuing to contract volumes conservatively, wary of increased costs, fragile consumer spending and changing habits, and a lack of demand pressure from retailers and distributors who – in some markets at least – still appear to be destocking. But for those buyers able to identify areas of potential sales growth, there is bulk availability that represents a highly attractive price-quality opportunity.
California, France, Argentina
At the moment, California, France and Argentina especially feel like fertile ground for buyers. Lower-priced availability includes Californian Central Valley wines but also cachet appellations from Coastal California, ideal for mid-tier export programmes. Our August report says that, in France, owing to market slowness, “quality levels on remaining stocks of 2023 and non-vintage wines are impressive” and prices have reduced, constituting a real opportunity for the next 1-2 months before prices potentially start higher on the 2024 vintage. Like in California, there are also cachet opportunities: for example, bottled reds and whites from prestigious Burgundy appellations are priced noticeably lower than they have traditionally been. And Argentina holds good volumes of standard, premium and high-end Malbec at softer pricing versus 12 months ago.
As recently stated by US business management consultants Azur Associates, lower prices can ultimately give consumers “high quality wines that over deliver”, assisting in wine’s fight to hold market share against a widening repertoire of alternatives.
Ciatti’s global network gives it the ability to provide the full spectrum of current wine and grape opportunities for buyers and sellers alike: Don’t hesitate to get in touch at info@ciatti.com.
