Coronavirus Again Exposes Fragility of Hospitality Driven Wine Business
In the beginning of March when the seriousness of the Coronavirus outbreak began to dawn on US Consumers, WineDirect noticed an immediate 22% volume decrease in weekend tasting room sales compared to the previous month across the 900 US and Canada wineries that use their point-of-sale system. Since then many wineries have canceled their tasting and event activities, and Governor Newsom has called on all of them to do so.
Not only does this crisis come at a time when the wine industry is experiencing a grape glut and stagnating growth, but it is on the tails of the Tubbs and Kincade Fires, which also severely depressed tourism and winery visits. Visits that wineries rely, perhaps too much on, for their businesses to succeed. (Wine Industry Advisor)
U.S. Wine Industry Faces an Uncertain Immediate Future
Despite rumors of people crowding bars in urban places, it is certain the coronavirus global pandemic will have a lasting effect on bars and restaurants across the US, as people get into the swing of ‘social distancing.’ The situation will also affect winery tourism.
Adrienne Stillman, marketing director at the direct-to-consumer company, Wine Direct says that last weekend “…we observed a 22% decrease in tasting room sales by volume compared to last month. This confirms the anecdotes we’ve been hearing from wineries: that guests are canceling reservations and travel plans.” (Forbes)