Coronavirus affects sales of U.S. craft distilleries

Photo by Matt Hoffman on Unsplash

Via Beveragedaily.com

A loss of $700mm in annual sales is projected which represents 41% of the sales of the U.S. craft distilleries.

The craft distilleries are suffering from the Covid-19 effect. In the United States, these distilleries are relying in the on-site tasting and because of the pandemic, visits have been cancelled. The Distilled Spirits Council of the United States (DISCUS) says these numbers show the extreme challenges the distilleries are facing. The council is calling on Congress to act immediately to help the distilleries.

Forty-one percent of the sales of craft distilleries have evaporated according to a study by the ADI. The ADI is a trade association for artisanal distillers. In addition, some 4 600 employees (31 %) have been dismissed.

A large part of these losses are due to the closure of sales on site in tasting rooms and other on-premises. It is estimated that in 2019, 919 mm $ of the income of the artisanal distilleries came from on-site sales. More than 40% of craft distillers get more than half of their income from tasting rooms.

DISCUS has been working on behalf of the distilleries to urge Congress for additional financial assistance to alleviate this sector.


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