As Coronavirus continues to sweep the globe, causing collapse of global stocks, major wine players are hit hard.
China is one of the world’s largest luxury markets for beverages, accounting for 30% of LVMH (Moet & Chandon, Dom Perignon, Cloudy Bay) sales and 10% of Pernod Ricard (Campo Viejo, Jacob’s Creek) sales.
Chines buyers cutting back on imports
With this times of pandemic and over 2mil of people infected also customers cut on drinking so the crates of wine remain stuck at Chinese customs while winemakers and distributors are watching how stocks fall and inventory grows.
According to Liv-ex one of the most popular choices of wine in Asia – Bordeaux wines saw a record low.
Astralia was hit hard by the apocalyptic fires and just when they thought it was over the virus came along. They felt the fallout very strongly since they usually export over $1.3 billion a year to China, accounting for 20% of the national crop. According to exporters, sales are already down to 90%.
Another that suffers are the Chilean wine exported to China. Since the outbreak, exports have slumped 50% to 60%, with Chile blaming the downfall on both a slow in orders and a holdup at the ports. From the usual 350 containers of Chilean wine admitted per day they faced an average of 50 cases per day passing through customs
Italy, one of the world’s largest wine markets, may face worse rumblings soon.
Online shopping – the new era
With less diners and drinkers heading out, brands are looking to increased delivery efforts to make up for lost revenue.
Hindering this growth is a lack of drivers—many are scared to be in that close proximity with potentially contaminated strangers. With this issue, a new e-commerce term has been formed: contactless delivery. Couriers wear face masks and gloves, but never come in contact with the customer—they simply pick up a receipt, drop a package and continue on their route.