‘This is a short term demand shock. Consumers will buy less wine for a short time because there is a reduction in the number of occasions; canceled sporting events, conventions, corporate events and so many other occasions where wine is served,” writes Rob McMillan in his SVB on Wine blog, adding:
“No matter what happens, wine consumers won’t abstain. That’s a fact. “How do I know that? Did consumers stop drinking wine during Prohibition when it was illegal? No. They just evolved the way it was manufactured and delivered.
And during the most recent recession, did consumers stop drinking? No. We experienced a short term slowdown in sales, followed by a sales increase a year later.”