Trends, forecasts and fashions: Inside the bulk wine market

Tuesday, 2 January, 2024
Meiningers, Felicity Carter
The bulk wine market is the engine of the international wine trade. Florian Ceschi shares how the market works and what the current trends are.

Florian Ceschi from bulk broker Ciatti says that he still has to explain bulk wine basics to wine students, 20 years after he first joined the industry.

“Most of the time they come to the wine industry because they like the top icon wines,“ he says. Ceschi tells them it’s great they’re working with a product they’re passionate about, but that bulk wine is the reality for most of the wine industry. “It’s not coming from the vine as a finished bottle. When you visit a cellar, you see bulk wine most of the time, and only a few cases of good wines.”

But although most of the students don’t think they will ever end up at the bulk end of the business,  Ceschi says it’s coming back into fashion. “Many people are rediscovering bulk,“ because they want to be sustainable, as shipping in bulk can lower the carbon footprint.

Ceschi, the Director of Ciatti Europe, was speaking at the World Bulk Wine Exhibition in Amsterdam, held in late November 2023. And, indeed, there were fine wine buyers from Britain present at the fair, keen to understand how to ship wine in bulk in order to be more sustainable.

At the moment, says Ceschi, bulk wine — meaning wine that’s shipped in flexitank or other such containers — makes up around 70% of the total global wine market. This wine is generally commodity wine, though it can be branded wine destined to be bottled at source.

Bulk wine is traded by three groups

Ceschi says there are three kinds of players on the bulk market: producers, buyers and the middle men.

  • "You will have straight producers. That can be either co-ops or wine estates." Producers use the bulk market to sell their excess, but sometimes they also need to buy, if they’ve "had a short crop or a higher demand from one of their clients".
  • There are the buyers, or négociants. “The bottlers, who are answering to supermarket chains. Their job is to transform the bulk into bottles, or other kind of format.”
  • And then there are businesses like the Ciatti Company who act as middle men between suppliers and buyers.

“The one paying us is the seller, so our commission is charged to the supplier, but in general we are dealing with both parties,” says Ceschi. Not only do the brokers know what’s available on the market, but they can also offer advice on the best components for blending, and in what ratios.

“Most of our staff have either an oenological background or a commercial background, but most of them are really good at the oenologist level.” Which means if a client wants a specific level of sugar, acidity and alcohol, or very specific aromas, the Ciatti staff can find the right wines. “We are used to tasting with our buyers and know what they want,  so we can also offer that kind of advice.”

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