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Whisky Advocate: Whisky Industry Snaps Into

Action To Fight COVID-19

The coronavirus continues to wreak havoc around the world, and the whisky industry hasn’t been spared. As COVID-19 cases continue to increase in the United States and Western Europe, health experts and government leaders are urging social distancing to slow the spread of the disease and lessen stress on healthcare systems. Meanwhile, distilleries and whisky businesses are spearheading their own efforts to mitigate the crisis.

That includes, in some cases, canceling or postponing whisky events, tours, and major festivals, like WhiskyFest Chicago, originally slated for March 27 and now rescheduled to December 11. Big Smoke Meets WhiskyFest, which was set to take place April 3-4 in Hollywood, Florida, is also being postponed, with a new date coming soon. Several other U.S. whisky events have likewise been canceled or postponed.

In Scotland, more than 60 distillery visitor centers closed or temporarily suspended tours because of the coronavirus outbreak as of March 17, according to the Scotch Whisky Association. Given how fast the situation is changing, it’s “too early to assess at this stage what the impact on the Scotch whisky industry will be,” the association said in a statement. “Despite some inevitable disruption to exports, global travel retail, and tourism to distillery visitor centers, we remain confident in the long-term growth opportunities for Scotch whisky at home and abroad.” Whisky Advocate has the full story.

Online Alcohol Providers See Major Boost Amid

Coronavirus Sheltering

As COVID-19 continues to force Americans to stay at home, online purchases of beverage alcohol are seeing major increases. E-commerce retailer Wine.com reports surging demand over the past week as people continue stocking up on wines and spirits by using home delivery. “Demand has doubled in the last week compared to the same period last year, and has tripled over the last several days,” said Wine.com CEO Rich Bergsund, adding that growth is coming from both existing and new customers.

Bergsund said Wine.com shoppers are buying a higher number of bottles per order, but spending slightly less per bottle—$26 versus the normal $32. He added that the company’s warehouses remain open and that it continues to ship, with inventories at healthy levels and no issues regarding supply. Wine.com, founded in 1998, last year saw annual revenues rise by $20 million to hit the $150-million mark.

Online local delivery platforms are also seeing sharp increases. At delivery provider Drizly, sales for the seven-day period through Sunday, March 15, were double the levels seen previously in 2020 before the crisis broke, and the average customer spend was about 30% higher than normal, the company said. Since then, its general merchandise value has been up 500% from the year-earlier period, with order value 50% higher on average. Drizly operates across 180 U.S. markets, and at press time most of its retail partners’ stores remained open. The company, which launched in 2012, is minority-owned by the Wine & Spirits Wholesalers of America (WSWA).

Orders at online delivery platform Minibar have also been spiking. CEO Lindsey Andrews told SND that orders have been surging since last Wednesday, with average order values up 22%. “Last Wednesday was 27% higher than in the previous week, and Thursday was 80% higher,” Andrews said. Traffic eased up on Friday and Saturday, but the spike resumed on Sunday with a 57% rise. This week’s sales have gone into overdrive, with Monday’s orders up 131% from a week earlier and Tuesday’s up 115%. Minibar’s average order value has been $88, compared to a normal level of $72. “Sales are coming primarily from existing users who are stocking up,” Andrews added, noting that orders are also being placed earlier in the day than usual. Wine sales in recent days have comprised 56% of Minibar's orders, up from a 49% average, while the spirits share is up slightly to 34% and beer comprises the remainder. Minibar partners with beverage alcohol retailers in 16 states across the country, as well as Washington, D.C.

“The increase in online purchases in the past two weeks has been unprecedented,” said Devaraj Southworth, CEO and co-founder of Thirstie, the New York-based e-commerce platform that works with hundreds of retailers around the country. “Our retail partners are telling us that, for the first time ever, a majority of their sales are coming from online purchases.” The average order size has nearly tripled, Southworth added, as people are concerned about supply meeting demand. “The current situation has highlighted the growing role e-commerce plays,” he said. “We’re seeing all brand categories pivot hard into the e-commerce space.”

Wine Spectator: Michael Broadbent, Father of

Modern Wine Auctions, Dies at 92

Michael Broadbent, whose untiring passion and curiosity for wine helped build the modern wine auction market, has died in England. He was 92.

As senior director for Christie’s fine wine department for 26 years and then a consultant for another 17 years, Broadbent built the London-based auction house into a major power broker in wine auctions, bringing new attention to the rare wine market. His work and his meticulous tasting methods made him a renowned expert in collectible wines.

“Michael was a pioneer and leader in the specialized world of fine wine auctions,” said Marvin R. Shanken, editor and publisher of Wine Spectator. "He brought an elegant sophistication to the events he moderated at our Wine Experience gatherings, and earned our Distinguished Service Award in 1991. Michael was one of a kind." Wine Spectator has more on Broadbent's life and career.

Cuervo CEO Diagnosed With COVID-19

In case you missed yesterday’s news alert, Grupo Cuervo has announced that its CEO, Juan Domingo Beckmann Legorreta, has tested positive for COVID-19 but remains in stable health and is continuing to fulfill his duties from home. Here's the full story.

News Briefs:

•Union Square Hospitality Group, helmed by restaurateur Danny Meyer, has laid off roughly 80% of its workforce, totaling some 2,000 front- and back-of-house staff at the company’s New York City and Washington, D.C. restaurants, and employees at its Manhattan corporate offices. The company closed all of its restaurants last Friday. According to CNBC, Meyer has donated his salary—along with money raised through pay cuts for executives—to support the employees that were let go. The goal of the layoffs, according to Meyer in a video statement, is to ensure that the company survives the economic fallout from the coronavirus pandemic. In a written statement, he said that employees would be paid through the pay-week and that health coverage would remain in place for the next month.

•The Distilled Spirits Council has urged Pennsylvania Governor Tom Wolf to reconsider his decision to close all Fine Wine & Good Spirits stores in his state. The group noted that control states such as Alabama, Virginia, and North Carolina have adopted workarounds to serve the public while reducing risk to customers and staff, adding that Pennsylvania is the only state thus far to implement a total shutdown. “We respectfully request that you reconsider your decision to close all state stores,” Distilled Spirits Council president and CEO Chris Swonger and American Distilled Spirits Association president and CEO Matt Dogali wrote in a letter to the governor. “If you are unable to re-open all or select PLCB stores, an innovative alternative would be to temporarily allow “R” licenses that currently sell beer and wine to also sell spirits until PLCB stores are re-opened. Many restaurants are now selling takeaway food only and the loss of patrons is financially harming their businesses.”

•Sourced Craft Cocktails is kicking off a new bottled cocktail delivery program today, intended to put bartenders back to work while supporting local spirits retailers. Under the program, which is launching in New York, Dallas, Austin, and San Francisco, consumers can select from eight cocktail choices and receive delivery the same day when ordering before 3pm Eastern. The packages include a 750-ml. bottle of the base spirit and a bottle of cocktail mixer—along with a jigger and cups—and yield 12 drinks. All deliveries will be made by a local bartender. Sourced Craft Cocktails will donate a portion of the proceeds from the sale of each bottled cocktail to the United States Bartenders Guild’s Bartender Emergency Assistance Program.

•Taub Family Selections has added Campania, Italy’s Mastroberardino family of wines to its distribution portfolio in the U.S. The New York-based importer and member of Taub Family Companies will now handle 14 Mastroberardino wines in the U.S., including three SKUs new to the market (Aglianico Irpinia DOC, Greco di Tufo DOCG, and Fiano di Avellino DOCG). The family-owned producer’s wines retail from around $20—for entry-level Italian varietals—to $215 for its prestige bottling. Previously, the Mastroberardino wines were handled by Winebow.

•Provençal winery Château Minuty has debuted its Minuty Prestige rosé in the U.S. Sourced from two estate vineyards—the original Château Minuty in Saint-Tropez and Vidauban-based Château Verez—Minuty Prestige rosé is a hand-harvested blend of 60% Grenache, 20% Syrah, 10% Cinsault, and 10% Tibouren. The new wine ($30 a 750-ml.) is now available across the U.S. through New York-based importer Vintus, joining M de Minuty and M de Minuty Limited Edition, among other wines, in the producer's stateside lineup.

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