The global bulk wine market reaches the midway point of 2024 with activity levels ostensibly healthier than they were at the same stage of last year. This is owed largely to two factors: generic white wine is in something of a supply-demand balance, globally-speaking, following the short 2023 harvests in Italy and Spain and 2024 harvests in Chile and South Africa; and removal, in March, of China’s punitive import tariffs on Australian wines has quickly rejuvenated Australia’s red wine shipments.
Beyond this, the global bulk market lacks a unifying good news story. Chile is enjoying a genuine rebound in international demand after a sharp drop in 2023: its bulk wine shipments were up 21.48% in January-April versus the first four months of last year, when they were down 18.9%. But Argentina, France and South Africa continue to see shrinking export sales, Californian pricing is softening as US retailer/distributor need remains limited, and activity in Europe beyond generic white – and some rosé for the summer season – is slow and steady.
Our California Report this month states: “Now is a good moment to harness some eye-catching bulk wine opportunities offering an excellent pricequality ratio: Prospective buyers are urged to get in touch with us to discover the newest opportunities.” This statement can equally be said of a number of markets around the world. The abundance of affordable bulk wine, from standard qualities to premium (such as reds from cachet appellations of France or Coastal California), offers opportunities for new brands and product innovation.
A new development may become a regular talking point in the second half of the year. A tariff war is getting underway between the EU and China, after the EU announced it would impose extra import tariffs on Chinese battery electric vehicles (BEVs), effective from 4th July, because “the entire BEV value chain benefits heavily from unfair subsidies in China”. In retaliation, China has threatened to hike tariffs on a range of EU imports, including wine. On 17th June, the country announced it had commenced an anti-dumping investigation into imports of EU pork. We recently detected an uptick in Chinese interest in French bulk wines, and this could potentially have been in anticipation of new tariffs.
In this ongoing period of uncertainty, of challenging sales and higher costs, Ciatti can draw on its decades of experience to help buyers and sellers alike identify new opportunities that provide cashflow, margin, and security: don’t hesitate to get in touch. In the meantime, read on for the latest from each market.