FOR YOUR INFORMATION
We share below a number of recent developments. 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.
THE CORONAVIRUS REPORT
We express our sincerest sympathies to all of those and their families who have been struck by the coronavirus, as well as with the many who are indirectly affected.
Listed below are a number of observations.
- The coronavirus may well fundamentally change the industry
- Dining Behaviour: This piece discusses how consumers are changing their habits in the face of the coronavirus, especially in the case of going to restaurants, and whether these changes will be more permanent after the pandemic is over.
- E-Commerce Sales: With on-premise sales effectively closed off, the number of alcohol beverage companies making the move toward e-commerce has dramatically increased, likely accelerating this trend.
- United States – Regulatory changes: In the face of the coronavirus pandemic, states are temporarily relaxing laws on alcohol purchases to provide relief to restaurants and small businesses, providing a major boost to the alcohol beverage sector. This raises the question of whether these regulatory adjustments may continue in effect after the crisis is over.
- Alcohol beverage sectors are seeking help from their governments
- Czech Republic – Brewers facing grave challenges: Czech brewers have launched an action to save their industry during the coronavirus pandemic. Concerned about the dramatic fallout from the expiration of 615,000 litres of craft beer, 34 Czech breweries have launched a website for selling and delivering beer directly to consumers.
- The German brewing industry has requested help from governmental authorities.
- Italy – The Wine industry asks for assistance: In light of this crisis, Italy’s agricultural and wine producers have reportedly sent a letter to Teresa Bellanovait, Italy’s Minister of Agriculture, requesting help with such measures as a national wine export support plan, managing the agricultural workforce, guaranteeing liquidity to wine companies for production, and bureaucratic streamlining during the COVID-19 pandemic. They are requesting this help in light of the numerous challenges of the day, ranging from the collapse of the restaurant business to the hardships bourne by agricultural workers.
- United States – Legislation to help the wine industry: Wine Institute has summarized here key provisions of the Coronavirus Aid, Relief and Economic Security Act, which includes support for wineries during the pandemic, and plans to schedule a webinar with the Small Business Administration to provide details on how to apply to programs.
- The U.S. Treasury Department is reportedly delaying excise tax payment due dates on wine, beer, distilled spirits, and other products to give businesses more flexibility as they contend with the coronavirus.
- Countries are continuing to ban the sale of alcohol
- Russia – Restaurant and bar closures: Vladimir Putin reportedly announced that bars, cafes, and restaurants will be closed until 5 April 2020 throughout Moscow and its suburbs.
- South Africa – The country in a lockdown: The South African government reportedly announced that the transportation and sale of alcohol will not be allowed anywhere during its three-week lockdown for the coronavirus and that offenders will receive a fine or six months in jail, or both.
- Others: Other countries to ban the sale of alcohol include Barbados, Grenada, Mexico, Panama, Georgia, Thailand and Zimbabwe,
- There are concerns about alcohol withdrawal
- World Health Organisation – Alcohol’s role: As the pandemic is causing about two-thirds of adults in the United Kingdom to feel anxious, the World Health Organisation Europe’s mental health and substance abuse department noted the need to protect those who are physically dependent on alcohol from going into dangerous withdrawal during lockdown. At the same time, it characterised alcohol as an “unhelpful coping strategy” for stress and isolation resulting from coronavirus lockdown.
- In India, hospitals have apparently witnessed a surge in patients experiencing alcohol withdrawal.
- There are similar withdrawal associated concerns in South Africa.
- Governments are either considering or imposing restrictions
- Australia – Restrictions on takeaway alcohol: For a minimum of two weeks due to the COVID-19 pandemic, Western Australia has reportedly restricted daily alcohol takeaway sales from bottle shops, hotels, bars, and alcohol producers not to exceed one carton of beer, cider or pre-mixed spirits; three bottles of wine; one litre of spirits or fortified wine; or a combination of two.
- France – Another approach: With bars, restaurants, and cafes already closed, a local authority in northeast France reportedly also banned the sale of all alcohol to be consumed off premises, effectively making the region dry during the coronavirus lockdown, but halted the ban 24 hours later in response to worldwide media attention.
- Russia – Limiting sales of alcohol: As more online services are delivering alcohol to consumers, the head of the Sober Russia project has reportedly requested the Russian government to limit the sale of alcoholic beverages so as to minimise the damage that alcohol can cause during the quarantine period.
- United Kingdom – Reducing alcohol risk in the face of the coronavirus: Approximately 100 doctors and public health professionals signed an open letter to the UK government, asking it to consider instituting measures such as lowering speed limits and increasing alcohol prices to reduce the strain on the health service during the pandemic.
- Illicit alcohol is causing deaths
- Iran: Following false rumors that consumption of alcohol prevents the spread of the coronavirus, 592 people have reportedly now died, poisoned from the consumption of illicit alcohol in Iran, where the sale and consumption of alcohol beverages is prohibited for Muslim citizens. This is an increase in deaths as reported on in the previous FIVS Alert on the coronavirus.
- Nigeria: The closing of the drinks industry in that country is reportedly raising the likelihood that the consumption of illicit beverages will increase.
- Turkey: The number of Turkish nationals who have reportedly died after drinking bootleg alcohol in Istanbul has risen to 53.
- Associations are providing guidance in making hand sanitiser products
- Australia – Sanitising wineries: The Australian Wine Research Institute is providing guidance for winemakers on how to sanitise their wineries during the pandemic.
- United States – A resource: The Distilled Spirits Council of the United States (DISCUS) has launched an online portal to provide those distillers who are producing hand sanitiser with information resources for ingredients, supplies, and distribution.
- Faculty from University of California, Davis warn that pumping high proof ethanol with a normal winery pump in order to create sanitising solution or while sanitizing equipment is extremely dangerous.
- The most recent COVID-19 relief legislation includes a federal excise tax waiver for hand sanitiser produced by distillers.
- Legal issues have emerged though about whether hand sanitiser products are effective in protecting against the coronavirus.