FOR YOUR INFORMATION
We would like to share the following items, which describe the impact that the coronavirus pandemic is having on the industry.
Check out our page on the FIVS website that offers news of how the COVID-19 pandemic is affecting our industry around the world. We are updating this webpage as new information becomes available.
CORONAVIRUS
Economic Impact
Increasing taxation to mobilize revenue for future pandemics? – This blog on the World Bank website suggests that taxation on tobacco, alcohol, and sugar-sweetened beverages is of critical importance to mobilize revenue for investment in future pandemic preparedness and other essential public health services. Former Secretary of the U.S. Treasury Larry Summers is quoted as saying, “If we want to improve global health, we need to tax the things that are killing us.”
Brand values hurt by pandemic – A report from Brand Finance suggests that alcohol beverage brands could lose as much as $33 billion worth of brand value due to the global pandemic. They report that spirits and wine brands could lose 10% in brand value, while beer brands might lose 20%.
Revival of neo-Prohibitionists? – This author argues that health concerns during the coronavirus pandemic may well fuel pro-regulation efforts and neo-Prohibitionist movements throughout the United States.
Opening UP
Madagascar – Restaurants, bars, and karaoke clubs in the Vakinankaratra region may reopen, but only until 5:00 pm.
South Africa – South Africa’s President has reportedly announced the suspension of that country’s second ban on alcohol beverage sales, which had been re-instated on 12 July 2020 in response to the coronavirus pandemic. Alcohol beverages reportedly may now be sold for on-site consumption until 10 pm and for off-site consumption from Monday through Thursday from 9 am until 5 pm.
Closing DOWN
Botswana – The President of Botswana has reportedly ordered the closure of all liquor stores throughout the country and suspended the sale of alcohol beverages and all liquor licenses. The ban applies to traditional beers brewed in rural households, as well as commercial alcohol beverages.
Malawi – Malawi’s attorney general has issued new guidelines to help counter the pandemic, including a restriction allowing bars to sell alcohol beverages only for take-out.
Norway – The government of Norway has indefinitely banned businesses from serving alcohol beverages after midnight to counter the upward trend in new COVID-19 cases that followed the “reopening” of Norway in June. The prime minister was quoted as saying, “There is a connection between alcohol consumption and how you behave.”
Portugal – The government of Portugal has reportedly extended its lockdown of bars until the end of August 2020, although those venues may function as cafes or pastry shops.
United States – Averaging 7,560 new COVID-19 cases per day over the past week, the governor of Texas has said that businesses must remain closed until the state’s positive rates are at or below 10%. State Republicans have reportedly protested his decision, arguing that he has overstepped his constitutional authority.