FOR YOUR INFORMATION
In this alert, we focus on items related to the coronavirus given how this topic has dwarfed in importance those items we typically cover. Sadly, we are finding virtually the same developments around the world and so are presenting similar stories below gathered together.
We renew our sincerest sympathies to everyone, knowing we all are being affected by this virus. We hope that our coverage on this subject helps inform the FIVS membership.
As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.
- Liquor stores are being touted as a vital part of the economy
- In some locales, liquor stores are considered to be “essential businesses” and thus are allowed to remain open. Such is the case in the United States (e.g., California, Illinois, and New York State).
- In some countries, such as New Zealand, harvest is considered an “essential business” so wineries are allowed to continue to operate.
- At the same time, sales are brisk at liquor stores in the United States (e.g., Maryland and New York State), as well as in Canada, Italy, and Norway.
- In some locales, liquor stores are considered to be “essential businesses” and thus are allowed to remain open. Such is the case in the United States (e.g., California, Illinois, and New York State).
- While restaurants and bars are being closed
- Government authorities are closing bars and restaurants around the world in an effort to limit the spread of the coronavirus (e.g., Australia, Belgium, Estonia, France, French Polynesia, Hong Kong, Italy, Ireland, Norway, South Africa, the United Kingdom, the United States, Vietnam and Zimbabwe).
- There have been attempts in some locales, such as Colorado, to continue to permit alcohol sales in restaurants.
- Government authorities are closing bars and restaurants around the world in an effort to limit the spread of the coronavirus (e.g., Australia, Belgium, Estonia, France, French Polynesia, Hong Kong, Italy, Ireland, Norway, South Africa, the United Kingdom, the United States, Vietnam and Zimbabwe).
- Bootleg sales are increasing, posing health risks
- Countries, such as Iran and Turkey, are experiencing dramatic increases in incidences of illnesses and deaths associated with an increase in the consumption of bootleg alcohol, especially in light of rumors that alcohol beverages can cure the virus.
- There is also the prospect that illegal establishments will open as restaurants and bars remain closed.
- Countries, such as Iran and Turkey, are experiencing dramatic increases in incidences of illnesses and deaths associated with an increase in the consumption of bootleg alcohol, especially in light of rumors that alcohol beverages can cure the virus.
- Trade groups are assisting their members
- Organisations such as Wine Australia and Wine Institute have provided advice to the industry.
- Alcohol beverage companies are making contributions to hard-hit sectors
- Diageo is creating a £1m fund to support the wages of bar staff in the United Kingdom.
- Anheuser-Busch is pledging over €1 million to support the Belgian hospitality sector as it copes with the coronavirus.
- The Carlsberg Foundation, the main shareholders of the well-known Danish brewery, has donated € 12.7 million to research and address the effects of the coronavirus.
- Molson Coors is reportedly providing funding to support bartenders and other industry professionals impacted by the coronavirus.
- Meanwhile, producers are switching to manufacture a new imperative – ingredients for hand sanitisers
- In some countries, the alcohol beverage sector is working with national authorities to produce alcohol to be used for highly sought hand sanitisers (e.g., Argentina, Canada, India, Ireland, Latvia, Poland, Philippines, Scotland, Spain, Uganda, the Ukraine, and the United States). See also this piece arguing for temporary authorisation,
- In other nations, some producers have already begun making product which is in high demand (e.g., Bacardi supplying ethanol, Diageo producing globally, beer producers in Brazil, baijiu producers in China, Michigan alcohol distillers, and spirits producers in Puerto Rico and Jamaica).
- While the alcohol beverage industry is seeking support from their governments
- In the United States, the wine industry (see also this piece), the spirits sector (see also this article), the beer industry, the alcohol beverage distributors, and the wholesalers are seeking some form of governmental support.
- Some governmental authorities are being flexible or offering assistance to the sector
- The EU is facilitating state support for businesses affected by the coronavirus crisis.
- The Trump administration recently announced that it may introduce a new round of tariff breaks for Chinese imports in the face of the spread of the coronavirus, reportedly marking the first time the U.S. Government has suggested duty relief as part of a policy response to the pandemic.
- Due to the effects of the coronavirus, U.S. Customs and Border Protection is accepting requests for duty-payment extensions.
- More industry events are not going ahead as planned
- In addition to events mentioned in the 10 March 2020 Alert, the following shows or meetings have either reportedly been rescheduled or cancelled – the International Wine Technical Summit, the London Wine Fair, the Napa Valley auction, the National Alcohol Beverage Control Association’s annual conference, WineAmerica’s National Wine Policy Conference, the World Wine Trade Group’s Intersessional meeting, and Vinitaly.
- Drink drive standards are being changed in the face of the pandemic
- In a number of nations, such as Australia, India, Namibia, and South Korea, enforcement authorities have suspended breathalyzer testing in possible cases of drunk driving given health concerns about spreading the coronavirus.