Australian wine exports to China slump by 90% as Coronovirus takes its toll
Australia’s wine exports to China have nosedived by 90% in the first two months of 2020 as the Coronavirus takes it toll.
The shipments, worth an annual $1.3bn have been hit hard as the virus has resulted in numerous bars and restaurants in China closing down, and hotels running at occupancy levels below 10% and hospitality staff being laid off in their droves.
“It’s a disaster,” said a spokesperson from one of Australias largest wine producers. “Sales are off 90% for the first two months and there is no relief in sight.”
The chief executive of drinks giant Pernod Ricard Alexandrre Ricard has said: “Nightclubs and night bars are all closed in China and those bars and restaurants that are not closed are empty.”
As the epidemic sweeps the world, increasing number of wine dinners, tastings and trade fairs have been cancelled or postponed, including the biggest of them all, the mammoth Chengdu China Food and drinks Fair which usually attracts around 3,000 exhibitiors and up to 300,000 buyers. And many airlines have slashed flights to China anyway – while outgoing ones by wine tourists, buyers, sellers and viticultural students are difficult if not impossible.
The outbreak of the epidemic has also coincided with the Chinese New Year, traditionally a peak time for sales of Australian wine
Cellar doors in Australia have also been hit, as the usual influx of Chinese tourists have been curtailed by travel restrictions.
And the sales slump is expected to last after the virus has peaked, with consumers predicted to be very cautious, particualry when it comes to discretionary spending.
*Parts of Italy are now in lockdown as the country sees its fifth Coronavirus death. Italy has confirmed more than 200 cases of the virus, by far the largest number outside China, Japan and Korea. Lombary and Veneto have locked down towns and banned public events with schools closed to stop the spread of the virus.