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 for more news of how the COVID-19 pandemic is affecting our industry around the world. We are updating the webpage as new information becomes available.
Economic Impact
Canada: Alcohol consumption steady in Quebec during pandemic – A survey commissioned by Éduc’alcool reportedly found that only 3 percent of Quebecers had greatly increased their consumption of alcohol after eight months of the pandemic. Seventeen percent had increased their drinking slightly, 13 percent had decreased their consumption, and 67 percent had not increased their consumption. Episodes of binge drinking also apparently changed little in November 2020 compared with May 2020.
EU: Beer market sales have fallen 20% due to COVID-19 – The Brewers of Europe claims that EU beer market sales dropped by 20 percent during the first six months of the pandemic, and that sales could drop by 25 percent by year’s end. The estimates include sales in pubs and restaurants, as well as retail sales. On-trade beer sales in Belgium fell by 55 percent in May, June, and July, and off-trade beer sales were also down due to restrictions on residential and private gatherings.
Global: E-commerce for spirits/wine doubling during pandemic – According to a new report by IWSR Drinks Market Analysis, the global e-commerce market for spirits and wine may double this year due to the pandemic, increasing by 42 percent since 2019. By comparison, e-commerce sales grew by 19 percent in 2019. China is currently the top market, where alcohol e-sales have been available for several years. But as more states in the United States relaxed direct shipping laws in response to COVID-19, and consumer awareness about online sales options grew, the U.S. e-commerce market has reportedly jumped significantly.
South Korea: Record level household spending on alcohol – Data released by the National Statistics Office reportedly shows that South Korean household spending on alcohol beverages and cigarettes was the highest on record during the third quarter of 2020 since the agency began collecting related data in 2003. Household spending on alcohol and tobacco declined 4.2 percent in the first quarter compared to last year, but it rose 9.5 percent in the second quarter and 22.2 percent during the third quarter. The agency suggested the rise was due to people staying at home during the pandemic.
Government actions
Europe: EC approves €12.4 million support for Romanian wine producers – The European Commission has reportedly approved a Romanian proposal by which 1,000 wine producers will receive €12.4 million in direct subsidies in order to meet liquidity needs. The subsidies will not exceed €100,000 per wine producer and will expire at the end of 2020.
India: Delhi government waives licence fees for 2020 – The Delhi government’s excise department has allowed waivers of licence fees for pubs, restaurants, and hotels serving alcohol beverages for the lockdown period caused by the coronavirus from 25 March to 8 September 2020. Bars and restaurants must pay their license fees in advance of the financial year.
Kenya: Bars to employ COVID-19 liaison officers – Bars in Kenya reportedly must now employ a COVID-19 liaison officer, acting as a link between the government and new guidelines regarding the pandemic. The officers will be tasked with restricting the number of individuals in bars, keeping abreast of emerging information and preventative measures, designating points of contact in the case of possible spreads of the virus, protecting employees at higher risks of severe illness from COVID-19, reporting cases of COVID-19 among employees, and arranging transport for staff, where possible, to reduce public transport use.
Illicit trade
Peru: Illicit trade in spirits growing during pandemic – A Euromonitor report found that illicit trade in spirits increased by 6.5 percent in Peru and by 9.7% in the surrounding region during the coronavirus pandemic compared with the previous year. The article further contends that the Peruvian market has one of the highest amounts of illegal alcohol consumed in Latin American. Their research also indicates this activity will likely increase if the economic recovery from the pandemic is slow.