Brands Brace for Sales, Revenue Dips Among Coronavirus Spread

The Coronavirus (COVID-19) is affecting every industry, and tanking the global economy as a whole. Even in the wine and spirits world, it’s causing profit loss.

Distilleries have canceled tours, whiskey trading is experiencing losses of more than 200 million, bars in Asia are quiet, and auction houses are halting selling their top whiskeys.

According to the World Health Organization, there are 110,029 Coronavirus cases in 105 countries, with 3,817 deaths, as of March 9. Internationally, government officials are encouraging citizens to self-quarantine.

Bottom of the barrel

For large, publicly-traded wine and spirits companies in the United States, stock prices are plunging in lockstep with the rest of the market.

Constellation Brands (STZ) was down 8.38 percent as of March 9, while Brown-Forman (BF-B) was down 5.65 percent.

International brand Diageo recently announced a potential $260 million loss due to fewer travelers in airports and decreased alcohol consumption in key Asian markets, according to the Financial Times.

Read more on Dimensional Insight.