With coronavirus rippling through continents, the entire hospitality and restaurant sector has taken the majority of the hits. As a large number of people are refraining from going outside, food is being prepared indoors which is actually affecting the restaurant industry and even the existing wine consumption levels, associated with the same. However, unlike processed food and items served at eateries, the effect on the wine industry isn’t all bad, especially if wine retail sector is concerned. At present, people are considering stocking up their wine coolers with the best wines available as the next few weeks might just force the entire global populace to stay indoors.
However, that said, wine stores at the brasseries and restaurants aren’t placed comfortably as there aren’t any clients to cater to.
Based on reports released by the authorities pertaining to the ‘Wines of South Africa’, the entire local wine market has been badly hit courtesy of the uncalled cancelation of International shows and closure of ports in China.
However, the decent ratio of 50:50, following the exports and even the local consumption are still holding the market firm which might change in the next few weeks, provided this pandemic persists.
In the subsequent sections, we shall take a look at the inferences and postulates released by the ‘Silicon Valley Bank Wine Division’, as voiced over by their Executive Vice President, Mr. Rob McMillan.
Overall Impact on the Wine Industry
Firstly, it is necessary to note that wine is one industry that might be virus resistant in regard to the economic consequences. While there are certain segments which might lose out on sales courtesy of several cancelled events, there are certain grocery stores where wine sales have skyrocketed as people are looking to stock more and store the same in the best wine coolers that have already been purchased, long back. Therefore, based on reports released by the ‘Silicon Valley Bank Wine Division’, it can be inferred that home consumption of wines is expected to increase but people will refrain from consuming the same at restaurants and high-end brasseries.
Wine Consumption in the US
There are a host of wineries in California that have closed their gates courtesy of the coronavirus threat. At present, most tasting rooms aren’t functional which is negatively impacting the fate of the entire wine industry. However, the Sonoma and Napa valleys are still resistant to the dampening effects of coronavirus as most of the wedding plans are set to be followed and none have been abruptly cancelled.
Winery Visitation and Tourist Inflow
While most of the tourist destinations are still following regular travel patterns, winery visitation has lowered significantly followed by lowered hotel occupancy figures. However, no trends have been encountered that suggest that individuals are abstaining from wine consumption, in order to stay away from physical threats.
What Future Holds for the Wine Industry?
The Coronavirus threat will pass but the entire wine industry should focus on online retailing, especially going into the future. The online or rather the Smart wine selling strategy will make sure that contactless selling is promoted.
The fate of the entire wine industry is gathering mixed reviews. While the start to this decade has been pretty alarming, there is a decent trend if wine retail and storage is concerned. Although people are staying away from wineries and tasting rooms, they are increasingly considering indoor options by storing wines in wine coolers. However, when it comes to storage, wine coolers need to be selected with precision and depending on the volume, type, and nature of wine that is to be stored.