Amid the second wave of Covid-19, the future of wine business is hard to predict. Potential further tightening of restrictions and business sector shutdowns loom large on the landscape. The recession isn’t over and the recovery for wine sales, once the recovery starts, will take longer than most.
In an article for North Bay Business Journal, Jeff Quackenbush, walks us through some of the numbers. In the second quarter of the year the US economy shrank by almost 33%. The current quarter was looking to be up, but is now heading in the wrong direction.
For the hospitality industry, which is one of the main engines for wine/beverage sales, pulling back the opening of indoor seating for restaurants and re-closing bars and nightclubs in certain areas of the country, has been particularly troubling.
Banquet type events, wine tastings, wine dinners, wine events, concerts, weddings etc. also aren’t happening. I hope next year those will come back strong, but the usual holiday event season will be uneventful this year. Pun intended.
As it stands today, until we at least get improved Covid-19 infection numbers, key sectors in the economy will remain closed. In areas that are worsening, more closures will occur. The recession will continue and the recovery for the wine business will be prolonged. Fasten your seat belts. It’s going to be a ride.
See Jeff’s full article here.
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