Ciatti California Report - June 2025
Vines in limbo: A market on hold amid slow demand
California’s bulk wine and grape markets proceeded slowly through May and into early June, the sluggish pace in line with April and down from the slightly improved activity levels seen in the first quarter of the year. The still-ongoing decline in wine sales at US retail, the damaging effect on exports of the US administration’s tariff and foreign policies, and widespread M&A activity among wineries and vineyard management companies, have all dampened market confidence.
The wine industry – in California as around the world – is amid a painful rightsizing: Many growers have mothballed vineyards because they do not have a contract or have been unable to obtain financing to farm; wineries are closing facilities as the tonnages needing to be crushed are shrinking each year, so too retail demand for wine; programs are being rationalized by wineries, retailers and distributors in response to negative sales, and wine’s shelf presence is in retreat; distributors are exiting the industry and nurseries are closing their doors.
The industry is waiting for fortunes to turn, and every now and then there is talk of light spotted on the horizon, but at the moment the core fundamental causing much of the heartache – declining wine sales – remains unchanged. In the meantime, however, not all programs are suffering equally, some are in fact enjoying robust growth, and current pricing levels on the bulk wine market enable entrepreneurial buyers to harness opportunities to impress consumers with high-quality wines and wine products at affordable prices.
This month’s California Report identifies the bulk wine activity that has occurred over the past month, and assesses the bulk inventory that we represent: How much is there, how does it compare with April and early May, and where is it situated? Paying subscribers can read the full details below.
Our latest Vineyard Update relays reasons why buyers have been hanging back: Vineyards appear in good condition as fruit-set gets underway, and cluster thinning has in some instances been required in order to keep the crop potential more in line with grape demand. Beyond re-signs, the grape market has been very slow in recent months and few wineries are likely to accept overages this year.
For the full Ciatti California Report for June, including charts showing bulk inventory by total volume, by varietal, and by location of Cabernet, paying subscribers can read on below.
If you are not yet a paying subscriber and would like access to the full report, including –
actionable bulk wine and grape market intelligence;
our latest bulk inventory charts by volume and by varietal;
our bulk/grape market activity barometer;
the latest vineyard update;
Saxco beverage packaging update;
– you can upgrade your subscription by clicking here.
Bulk wine suppliers are invited to list their wines with us and send in samples, so we are able to harness buyer interest as it arises. Suppliers can contact either Mark at +1 415 630 2548 / mark@ciatti.com or Michael at +1 415 630 2541 / michael@ciatti.com.
Grape growers are recommended to inform us now of what 2025 grapes they may have available, so we can match up supplies with buyers: Please contact Molly at +1 415 630 2416 / molly@ciatti.com.
Prospective buyers of bulk wine or 2025 grapes should reach out to our broker team by clicking the button below.