Q&A with Johnny Leonardo; Saxco Update
"Buyers are extremely cautious of their needs right now"
Following the California Report’s review of 2024 and look ahead to 2025, published earlier this week, the report now quizzes Ciatti broker Johnny Leonardo about the current state of the bulk wine and grape markets, the varying performance of varieties, and vineyard removals. Read on below for the Q&A.
Also below is January’s packaging update from our friends at Saxco, including how the incoming US administration’s tariff threats are affecting the glass market.
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Johnny and the rest of the Ciatti broker team – possessing over 130 years of collective wine industry experience – are on hand to help buyers and sellers navigate the current market challenges. Head office and individual brokers’ contact details can be found by hitting the button below.
Q&A with Johnny Leonardo
Firstly, Johnny, tell readers a little about yourself: How long have you been in the wine business and what is your role at Ciatti?
I have been with the Ciatti Co since February of 2004. Prior to that I was involved in my family’s farming operation, which included wine grapes as well as a small wine brand and tasting room. I am a bulk wine and grape broker focusing on the southern and northern Interior region, with most of the wineries I represent being in the northern Interior. I am based out of Lodi, CA.
Since you started as a broker, what would you say is the biggest change in buying/selling behavior that has come about on the bulk wine and grape markets?
As long as I’ve been a broker, we’ve never before seen a sluggish grape and bulk wine market that was the result of overall declining consumption and sales as is the current situation. This has caused great uncertainty within the industry and wineries have changed their sourcing strategies for fear of holding too much inventory.
It has certainly been a challenging time for the grape market over the past two years. How do current activity levels on the grape market compare with in the past – is this the slowest you have ever seen it?
Unfortunately, the grape market activity the last two years is the most challenging I’ve seen since being a broker. In the past, the cycle of grapes being oversupplied was due to higher yields or overplanting and the rebound was quicker once the excess moved through the system. With the current inventory surplus having more to do with declining sales and uncertain sales projections, most wineries have drastically cut back their grape sourcing which has resulted in more fields not getting picked.
Are there particular grape varietals in the Interior that are in better supply-demand balance?
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