These certainly are the most extraordinary of times that any of us have ever known. The impact on the global economy will be substantial and specifically, in our case, the global wine industry faces an unknown future in the wake of COVID-19.
Less than 2 weeks ago, I elaborated on my thoughts about COVID 19 and Wine. Now as I witness the devastation that other Countries in the world are facing, I firmly believe that our lock-down here in Ireland is absolutely essential.
What I’d like to highlight in this post is my sadness when I read about the serious challenges facing the people of Spain and the devastation that the coronavirus is causing over there. I am writing this post for our friends in the Spanish wine industry by way of a wine shout out.
I looked back through my blog posts and noticed that it was exactly 12 months ago since I penned a blog post about Spanish Wines – What You Need to Know About Spanish Wines. What a difference a year makes.
We have built up many friendships with our Spanish suppliers. All of us in Green Acres feel for them during this COVID 19 virus attack and the resultant struggle of the Spanish wine industry.
I fully appreciate the enormous toll on human life this nasty virus is taking globally and rocking our ‘normalities’ to the core. However, as alluded to, I want to write a brief post about the wine industry in general and give a wine shout out to our friends in Spain.
Effects on the Global Wine Industry.
Undoubtedly, post COVID 19, there will be enormous negative consequences for the wine industry. Apart from the obvious impact on hospitality businesses due to lack of consumption, the supply of wine may be affected in the future.
While wineries continue the essential work of tending vines, they cannot be operating at 100% in the current circumstances. I mean, with people working from home and the strict measures of health and safety, surely production will suffer if the pandemic is drawn out over many months.
In the short term, the supply chain of wines, and spirits, should be reasonably resilient, as many suppliers both online and offline keep good stocks. Many retailers, such as ourselves have ample product warehoused to cover an increase in demand in the short term.
However, such barriers as temporary re-imposition of European borders could start to have an effect on the movement of goods, in the medium term. Also, can you image what would happen if say haulage/courier companies were impacted by the shortage of drivers through illness or quarantine!
In the longer term, if Governments are forced to further control the movement of people, such elements of wine making as tending the vines, managing bottling lines and administration staff will further impact on wine production.
What About Spanish Wine?
Other than the domestic market in Spain where sales have fallen through the floor due to restaurant shutdowns etc, people forget that exports to the U.S. market are an important part of sales for top Spanish producers.
In that market, it’s going to be a challenging year, for Spanish (European) wines where COVID-19 comes right after the tariffs imposed last October on wines below 14 percent alcohol. The threat of the 100 percent tariffs that, didn’t materialise, still damaged the industry by delaying shipments from Spain.
We have been speaking with some of our suppliers abroad and they expect that with economic shutdown across the world – they will have to adjust their financial projections downwards. There was general agreement that more economic damage was inevitable, unfortunately.
A Wine Shout Out to Our Friends.
One of the motivations for writing this particular post was to support our friends ‘across the water’ on mainland Europe. In this instance, our friends in Spain. Please support them in their ‘hour of need’ by including some Spanish wine with your next purchase.
I would like to do a virtual wine SHOUT OUT to our suppliers around Spain so that maybe we can personalise their wine offerings for you.
Miguel Merino – Bodegas Miguel Merino, Region: Rioja Alta,
Felipe Cazabon – Tinto Figuero, Region: Ribera del Duero,
David Aranzana – Vega Sicilia, Region: Ribera Del Duero,
Ricard Zamora – Cellar de L’Encastell, Region: Priorat,
– Cellar Cal Besso, Region: MontSant,
Eugenio Suner – Marques de Grinon, Region: Castilla-La Mancha,
Miguel Angel Diaz – Bedega de Pinoso. Region: Alicante,
Antonio Sorgato – Toro Albara, Region: Montilla Moriles,
Benkamin de Rothschild – Macan, Region: Rioja,
Merche Fandiño – Benito Santos, Region: Galicia,
Mantente seguro mis amigos.
I would like to do a virtual SHOUT OUT to our suppliers around Spain- Mantente seguro mis amigos @greenacresirl #stayhomesavelives
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Spaniards are Lively and Lovely People.
If the Spanish suppliers we know are anything to go by – the Spanish people will get through this, stronger.
We are excited about the emergence of new wine regions such as Madrid – which produces wines that are light, aromatic, and Pinot Noir in style – and Tenerife, an island microcosm, where old grape varietals and volcanic soil combine to produce distinctive terroir wines.
The change is being led by young wine- makers – some of whom have worked abroad at good wineries in France, Australia and the US, and are bringing back their skills and knowledge. They will ride the beast that is COVID 19 and hit-the-ground running thereafter.
I hope we can all help them by considering adding 1 extra bottle of Spanish wine to your next purchase.
We can recommend all of our Spanish suppliers above but here are four that we want to share with you today:
These are the most extraordinary times any of us have ever known, but like the Spanish, the vast majority of us will get through it.
So, take a little glass of Spanish wine and help them keep spirits up, (although you may be drinking in isolation).
If you would like to talk about or order any of the above wines, we are still here on site and can deliver nationwide or locally.
Stay Safe, Stop the Spread and thank you, from all the Green Acres team, for your continued support of our business.
Talk Soon – James.