If you thought social distancing would soon be over, think again.
Beginning around 5:25 last night, and continuing until well past 7, the White House gave an extraordinary briefing on the coronavirus situation and had a stark warning: It’s going to get much worse before it gets better.
President Trump said, “This could be a hell of a bad two weeks.” Gov. Andrew Cuomo of New York seemed to be speaking for public officials and medical personnel everywhere when he separately confessed, “We underestimated this virus. It’s more powerful, more dangerous than we expected.”
For the bev/al business, it means taprooms, tasting rooms, bars and restaurants will remain closed for several more weeks. A survey just out this morning for American Consumer Credit Counseling finds 29% of Americans 26-65 with incomes of $100,000 say they have been “significantly impacted” by the disease, while nearly 50% have been at least “somewhat impacted.
Will the coronavirus spell the end of bev/al buyers going upscale? We don’t know, and no one else does either, but it seems a good possibility . . . our opinion. Consider this: The ACCC survey found 55% of respondents “not confident” or “not confident at all,” 41% suggested they were “uncomfortable” with their household income, and 40% said they didn’t think they would be able to reduce household debt at least 10% over the next six months.
Looking at China as typical, that suggests the U.S. won’t start to get back to normal until at least the end of May, if not well into June. With new cases of infection slowing significantly in recent week, the government there is pushing factories, malls and similar facilities to reopen.
The Wall Street Journal’s coverage is here. The New York Times is here. The Washington Post is here. The full White House briefing is here. Read nothing if you wish, but watch the full briefing. It is extraordinary.