Our world has changed in so many ways in just four weeks, as we all address the Coronavirus (COVID-19) challenge that has affected everyone throughout the world. We hope all our friends, clients, business associates and their families are safe – we are thinking of each and every one of you during this time. It is difficult discussing the marketplace given that it can seem insignificant compared to all that is going on around us. But as we work through the challenge at hand, we feel the need to develop a new sense of normalcy – so with that intent we wish to share with you what we are currently seeing on the world’s grape and bulk wine markets.
The recurring theme from this month’s report is the extent to which business is continuing as close to normal as possible in the current circumstances. Pre-lockdown stockpiling at supermarkets and other offtrade channels throughout the world in March – from Australia and New Zealand to Europe and the US – at least temporarily boosted sales and helped partially offset the slump in business with the on-trade, which is shuttered. And Chinese demand seems to be waking up. Around the world, wine is getting loaded, wine is getting bottled, wine is getting shipped and wine is getting bought by consumers. Sometimes workarounds are needed – and at all times extra time needs to be allowed by everybody – but wine is ending up where it needs to be.
Another recurring theme is the logistical difficulty of getting samples to their destinations: on the one hand this is a concern, but on the other it only serves to highlights that there is demand. Get in touch with us if you have wine to sell and we will draw on our global reach to get your samples to where they need to be.
Coronavirus has not impacted the Southern Hemisphere’s 2020 harvests, with agricultural industries – situated away from urban centers as they are – permitted to continue. Wineries in the Western Cape – which enjoyed a gloriously straightforward growing season – have even been able to work free of power cuts, as the lockdown has reduced South Africa’s electricity demand. Chile’s harvest is expected to finish by the end of April, a month early, as the ongoing drought there has dehydrated grapes. Argentina’s harvest is 95-100% over already, and looks like being 18-22% down on the long-term average. Heat and bushfires are likely to have taken their toll on the size of Australia’s harvest.
The impact these smaller harvests combined with Coronavirus will have on prices is unclear: longer-term visibility in the marketplace is, of course, currently limited. But we at Ciatti are working and available, able to navigate you through the twists and turns with our decades of experience and global reach. Don’t hesitate to get in touch – and stay safe.