Toast Master Andy Myers of the Washington D.C. based ThinkFoodGroup asks a rhetorical question, “Why would anyone want to talk about wine right now?” [1]
He has a point. With virus fears, high unemployment, restaurant business drastically down, weddings and celebrations postponed, and concerns about social distancing and wearing masks, it doesn’t seem like much of a time to be celebrating the types of events that we generally associate with wine.
Losses to the food, beverage, and hospitality industry are staggering and difficult to quantify. Far too many employees have been furloughed and businesses have been shuttered, and it is impossible to say at this point how many will be able to recover.
Liza Zimmerman, writing for Forbes, gives us a glimpse of how wineries are being impacted in the United States. She explains that “The average U.S. winery is expected to lose 63 percent of its sales in March, 75 percent in April and has on average had to let four staff members go.” [2]
However, the sale of alcoholic beverages, and more specifically of wine itself, has not decreased. In part, this may be due to the same panic buying and stocking up that has affected other consumer goods since mid-March.
Richard Siddle of The Buyer points out that “The contrast between on- and off-premise sales could not be more stark. While the restaurant and bars sectors have gradually ground to a halt, the off-premise is booming. Nielsen data shows that wine sales were up nationwide 28 percent in the week leading up to March 14.” [3]
Wineries that are pulling through have often been those that took quick action to promote their online and mail-order services.
For example, Dan Panella, co-owner and winemaker at Oak Farm Vineyards in Lodi, California once depended upon wholesalers for most of his business. Because his wines were supplied to restaurants, his sales have suffered. Most of his direct to consumer sales took place on-site and in his tasting rooms. [4]
Panella took quick action at the beginning of the shutdowns to communicate with consumers on his mailing list, offering promotions including free shipping on orders of three bottles or more. His efforts have paid off in increased mail-order sales, and he hopes to bring back his furloughed part-time employees when business picks up again.
Some states are allowing restaurants that offer carryout services to temporarily offer wine and cocktails to-go. This has allowed these establishments to boost income, and they have found that the response to making wine and beverage pairings with entrees available has been strong.
“[I knew] selling alcohol off-premise would give me a chance to pay my rent and give the rest to staff,” says Brent Kroll, proprietor of Maxwell Park Winebar in Washington D.C. [5]
Andy Meyers of ThinkFoodGroup stays busy offering free meals through local community kitchens as well as curbside pickup to his paying customers. He and his beverage team have curated a list of wines and cocktails to accompany the meals.
His team has also opened “bodegas” in several D.C. area restaurant locations, featuring wines as well as hand sanitizer, toilet paper, cleaning supplies, bread, eggs, and other pantry items.
Meyers indicates consumer interest is currently trending towards more economical wine choices, and that buyers are tending to respond to more modest price points. [6]
As the world begins to open up again, celebrations will return as well. Hopefully, our favorite wineries and restaurants will pull through, and the wine industry will continue to grow and prosper, and consumer wine habits and perceptions will return to what they were prior to this year.