Coronavirus hits wine producers as markets slow
As the grip of the Coronavirus strengthens across the globe many wine producers and brands are starting to feel the pinch, especially those with a large Asian customer base.
The problem for producers is two-fold; Chinese consumers are cutting back dramatically on drinking and many shipments of wine remain stuck at Chinese customs.
According to Forbes, Spain’s leading wine brand Torres is expecting a major hit. It’s predicting an 80% drop in sales this month, and a 50% fall in March.
The affects are being felt elsewhere too; Chile exports a third of its wine to China and Australian wineries are seeing sales figures for China down as much as 90% across January and February.
Champagne producers have warned that the Coronavirus could put the brakes the expanding business opportunities in Asia for the sparkling wine.
‘Everything has stopped in China completely’ said the president of Champagne Boizel in an interview about the impact of the Coronavirus with CNBC. The Chinese market for Champagne saw a 9.1% rise in exports to 4.7 million bottles in 2018.
On the ground in China a number of wine shows have been cancelled or postponed. China International Alcoholic Drinks Expo (CIADE), TWC Chengdu Fine Wine Showcase, Sud de France Wine Roadshow – 2020 Spring Session and The China Food & Drinks Fair (CFDF) have all been affected.
Since the virus is found in Italy and already spreading around Europa we keep our fingers crossed for the major wine shows in Europa: Prowein and Vinitaly first. If the major shows in Europa are being cancelled Vinexion can prove very valuable in the continuing search for new wine tradepartners online.