Diageo, the largest alcoholic beverage company in the world, estimates that the loss ending June 2020 will be between $300 million and $420 million.
Alok Chandra reports.
The topic of the day is coronavirus. It is impacting every aspect of our existence, so let's look at how it impacts something I write about: Wine.
Diageo, the largest alcoholic beverage company in the world, estimates that the loss in its fiscal year ending June 2020 would be between $300 million and $420 million -- but noted that the situation may change.
Wine companies and wine exporting countries with significant past business in China will be particularly hard-hit: Torres (Spain) is said to have experienced an 80 per cent decline in sales in February, while some Australian wineries have experienced a 90 per cent drop!
In India, the impact on wine will mirror the declining business of hotels and restaurants, although with more people working from and staying at home, retail sales may actually pick up some of the slack.
In any case, with supply chains from overseas producers getting affected, it may be useful for people to stock up on their favourite tipple -- who knows when supplies of particular wines will not get replenished?
Alok Chandra is a Bengaluru-based wine consultant