Green shoots: Is this a “transitional moment”? With spring getting underway, this month’s California Report assesses vineyard conditions, grape demand, and whether the bulk wine and grape markets are seeing the first tentative green shoots of  recovery: Is the industry in a “transitional moment” before growth returns later this year or next? We dive into recent reports that case-good sales declines in the US are slowing, using the latest SipSource US wholesale depletions data to pick out some sales trends. The convergence of pricing toward California-appellation levels on all but a select handful of wines theoretically enables bulk wine buyers to make their decisions based purely on which samples best meet their quality/character specifications. This has opened up product development and scope for wine companies to attack potential retail opportunities. With wine aisles growing shorter, this is a challenging time to “buy the dip” with inn

In today’s wine industry, running lean has become the norm. Wineries are navigating tighter margins, shifting consumer demand, and limited resources all while trying to maintain the exceptional service their customers expect. In a market where every shipment counts, having the right fulfillment partner is not just a convenience, it’s a necessity. At WineDirect Fulfillment, we understand the pressure to do more with less. That’s why we’ve built our operations and tools to support your business through every challenge, helping you protect your brand, deliver a top-tier customer experience, and keep things running smoothly. Choosing the Right Partner  When you're operating with a smaller team and fewer resources, there’s no room for error. Delays in shipping, inventory mishaps, or damaged wine can quickly erode customer trust and impact your brand’s reputation. And with limited time to chase down support or resolve issues, wineries need a par

Packaging supply stable, but uneasy While June ushered in a more stable rhythm after May’s tariff-driven frenzy, underlying uncertainty continues to shape planning, procurement, and pricing across the packaging and logistics landscape. Supply remains steady across most categories, but stability doesn’t mean simplicity. US glass manufacturers, in particular, are contending with a mismatch between output and demand. Inventories have piled up amid sluggish ordering, especially from wine producers still reeling from compressed consumer spending and slowing DTC velocity. With tanks and warehouses more full than empty, some domestic furnaces are now eyeing Q3/Q4 production pauses as a measure to rebalance. After a brief reprieve in May, diesel prices rose again in June, increasing from $3.499 to $3.599 per gallon, a continued reflection of the volatile energy market. According to the latest Deloitte economic outlook, while core inflation is showing signs of moderation, ener

Summer winery marketing strategies are essential for staying competitive during travel season and warmer weather. As customer habits shift and traditional foot traffic slows, wineries must find new ways to stand out. The good news? With the right mix of creativity, personalization, and tech-driven tools, summer can be one of your most profitable seasons yet. Here are five innovative, customer-centric strategies to help your winery sell more and build deeper relationships this summer. 1. Rethink Summer Shipping: Flexibility Is the New Fast Wine and heat don’t mix. But neither do frustrated customers nor surprise shipping delays. In 2025, the most successful wineries are leaning into flexibility, clear communication, and smarter logistics to keep orders flowing and customers happy. 🔄 Give Customers Control Let your customers decide when and how they receive their wine. Integrate tools that allow post-purchase adjustments, like scheduling a fall delivery or choosing a local picku

Global wine consumption in 2024 is estimated by the Organisation of Vine & Wine (OIV) to have reached 214.2 million hectolitres, down 3.3% versus 2023 and the lowest level since 1961. In its recently-published 2024 industry report, the OIV attributed the decline in consumption – which has “followed a relatively steady trajectory since 2018” – to significantly reduced Chinese demand and the post-pandemic inflation surge which, although having cooled since 2023, still restricts consumer purchasing power to this day. Elevated input costs have made it harder for wine to compete against alternative beverages able to charge a lower price per unit of alcohol.  The OIV estimated global production in 2024 at 225.8 million hectolitres, 4.8% down versus 2023 and, again, the lowest level since 1961. This is attributable to climactic conditions but also market adjustments, as vineyards get mothballed or pulled out altogether in response to low winegrape demand. Glo

The Southern Hemisphere harvests have wound down and their sizes seem variable: while Argentina’s and South Africa’s appear to have come in close to their downwardly-adjusted averages, Chile’s is estimated to be approximately 25% short; the crop sizes in Australia and New Zealand remain harder to quantify, with some grapes – mainly reds in the former, whites in the latter – unpicked to assist in balancing supply.  It is mid-spring in the Northern Hemisphere, meanwhile, and despite some inclement weather across Europe through March, the vineyards of France, Italy and Spain appear in good condition. March was also wet in much of California, which has now experienced three consecutive winters of average or above-average snowpack for the first time since 1998-2000. It likely that the grape market more than conditions will dictate the 2025 harvest size in California, judging by the number of vineyards across the state yet to be pruned.  The bulk mark

Looking back over a challenging 2024 and ahead to 2025 This month’s California Report looks back at the year just passed and ahead to the new one: Read on below for an in-depth review of the bulk wine and grape markets in 2024, as well as bulk inventory charts for a range of periods and an updated bulk/grape market activity barometer. A Q&A with Ciatti broker Johnny Leonardo, discussing the current market situation, will be published in the coming days, together with the first packaging bulletin of the year from our friends at Saxco. For California’s wine industry, the year 2024 was defined by a painful but necessary right-sizing as the industry evolves into one better suited to delivering to the US market something like 350 million 9-liter cases of wine per year instead of the 400 million cases of the past. Rationalization of businesses and vineyard area took greater hold – there was a marked rise in wine-related property on the real-estate market and a shortage

Ciatti California Market Report, November 2024 This month we introduce our bulk/grape market activity barometer and it shows the markets continuing to proceed slowly. Many wineries currently appear to have a strategy of holding off from buying bulk wine or contracting grapes, whether that be for financial reasons or lack of visibility on retailer/distributor depletions during the important OND sales period and into the new year. Their aim is to weather the higher-cost, lower-sales environment as best they can and reach the 2025 vintage in a more balanced inventory position, by which time it is hoped retail sales declines will have levelled out. We have downwardly revised our 2024 harvest estimate from 3.2-3.3 million tons to 3.1-3.2 million, as we suspect some late picking – into mid-November in some areas – was more than offset by the detrimental effects of October’s unseasonably intense heat. Many growers are now preparing for another year in which tough decisions

A Time for Reflection & Collaboration By Steve Fredricks  As the 2024 harvest concludes, the Thanksgiving holiday approaches, and the year draws to a close, it's a natural time for reflection and giving thanks. While it's easy to get caught up in the current negativity caused by slow consumer sales and oversupply, let's appreciate a few of the positives—both in the past year and the one ahead.  We can be thankful the 2024 harvest was earlier, smoother, and lighter than in 2023. And, despite the multiple heat events throughout California, winemakers' feedback has been positive to excellent regarding the vintage's quality thus far. This presents continued opportunities for the industry, as wine quality for consumers is better than ever with diverse styles.  We can also be thankful that beyond the vines and wines, there is a growing awareness and an increasing sense of collaboration to address and turn the tide of our global consumer sales ch

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