FOR YOUR INFORMATION
We would like to share the following items, which describe the impact that the coronavirus pandemic is having on the industry.
Check out our page on the FIVS website that offers news of how the COVID-19 pandemic is affecting our industry around the world! We are updating this webpage as new information becomes available.
Surviving the Pandemic
- Opening pubs in Australia: This article considers why many pubs may not open up until the coronavirus restrictions are completely lifted, as owners worry that opening under current restrictions with a ten patron limit may not be economically viable.
- Indian retailers move to home delivery: Some retailers are reportedly switching to home delivery of alcohol which they assert will be safer than having customers come to their retail outlets.
- Canned cocktails in the United States: Sales of pre-mixed canned cocktails have skyrocketed due to stay-at-home orders during the pandemic.
- Lessons from previous recessions in the United States: This article shares advice from Delicato Family Wines of California on how to survive recessions – by focusing on key brands, maintaining standards, moving inventory, and deploying marketing initiatives to areas that are working such as e-commerce retail channels.
- Wine tasting in United States: As Oregon reportedly announces the reopening of tasting rooms, this article compares possible guidelines reportedly under consideration for Oregon with those for California, such as: tasting appointments may be required in California but not in Oregon; party sizes in California may be restricted to six or fewer, but to ten or fewer in Oregon; masks may be required except while sipping in California but only recommended in Oregon; wineries in California with outdoor seating may be able to open sooner than those without; and California wineries may be required to close at 5 pm, but Oregon may allow service until 10 pm.
- Restaurants may be able to offer take-out alcohol permanently: Under new legislation, bars and restaurants in the State of New York would reportedly be allowed to continue offering alcohol as take-out or delivery. This measure is being taken to minimise the economic impact of coronavirus closure orders.
- Adjusting to an online world: This blog discusses the emerging opportunities for alcohol beverage sales in what will be an increasingly “online world.” This move will also require learning how to navigate and leverage novel routes to market.
Governments Helping or Regulating Industry
- European Union: The European Commission has issued recommendations to its members on how to gradually lift travel restrictions, allowing Europe’s tourism sector to recover from the pandemic. Protocols for tourism services include, among other things, sufficient health systems for local people and tourists and robust testing measures and contact tracing to allow people to safely stay at hotels, bed & breakfasts, and leisure outdoor areas.
- France: The French Ministry of Economy reportedly announced that very small businesses in the wine sector will be exempt from social security contributions, as well as the establishment of a €140 million emergency distillation fund for the wine sector. Winegrowers have nonetheless reportedly called for additional help.
- Papua New Guinea: Papua New Guinea has banned the sale of alcohol beverages on Fridays, Saturdays, and Sundays after the Covid-19 emergency controller reportedly found an increase in domestic violence and assaults since lockdown measures had been eased.
- South Africa: After President Ramaphosa announced that the limited sale of alcohol beverages might resume on 01 June 2020, the Liquor Traders Association of South Africa reportedly proposed that trading hours for stores be limited to Monday, Tuesday, and Wednesday mornings until noon; that consumers whose names begin with N through Z wait an additional day before resuming purchases; and that limits be placed on maximum purchases per day.
- South Korea: As the number of confirmed cases traced to reopened nightclubs has reportedly increased to at least 94, concern about a second surge is rising because these infected young individuals may be “quiet propagators” with asymptomatic or mild cases of COVID-19.
- United States: This article notes how rules on reopening wineries reportedly vary from state to state: Texas has allowed winery tasting rooms to stay open at 25 percent occupancy; wineries in New York are limited to curbside pickup only; and Virginia may have outdoor seating only. The article includes lessons learned by those wineries that have reopened: reach out to clients creatively, join wine clubs, offer curbside sales, establish sales to liquor stores and supermarket chains, and switch from business plans for traditional tasting rooms to those of restaurants.
Industry Seeking Help
- Germany: The German brewing sector is reportedly calling for government support, expressing concern that business will not improve before the end of 2020, especially as beer festivals are being cancelled during the months of May, June, and July.
- United States: Industry groups – including the U.S. Travel Association, the National Restaurant Association, the National Retail Federation, the American Hotel and Lodging Association, Airlines for America, and the American Gaming Association – have reportedly written to the U.S. Congress, asking that upcoming coronavirus legislation provide liability protection for both essential and non-essential businesses, concerned that companies which reopen may face substantial litigation regarding virus transmission even after relying on public health recommendations and guidelines to implement safety protocols.
Illicit Alcohol
- Democratic Republic of Congo: The Congolese Control Office reportedly destroyed more than 12,000 alcohol sachets, which were intercepted at Kindu Airport, noting that the Governor had prohibited the sale of liquors, spirits, and liqueurs packaged in sachets on 25 January 2020.
- Dominican Republic: Since the beginning of April, 177 people have died in the Dominican Republic from the consumption of illicit alcohol adulterated with methanol. The Ministry of Public Health noted an increase in demand for these drinks due to the mistaken belief that their consumption provides protection from Covid-19.
- Mexico: More than 160 people have reportedly died in recent weeks from the consumption of adulterated alcohol in Mexico, including states such as Puebla, Jalisco, Morelos, Yucatan, and Veracruz.
- Russia: A survey conducted by phone by the Financial University of the Russian Federation reportedly found that production of home-made alcohol has increased by 60% since the fall of 2019.