restaurants & the elephant in the room…


It’s true of course – how could it be any different? Without restaurants – either ordering or potentially closing for good – the wine-producers of all regions have currently lost a significant part of their client-base. At this point, only Burgundy seems to be openly discussing this and that’s why they have the headline.

Major retail channels are not making up for lost sales.” Again, of course. The orders that have been placed by hotels and restaurants, less than 2 months ago, will not have been re-allocated yet, it’s too soon.

Nobody knows how the restaurant scene will look 2 years down the line, but typically it is the older, more coveted, domaines that have higher exposure to the restaurant trade. The ‘slack’ of unsold/un-ordered wine could easily be taken up by the consumer channels for these sought-after domaines – just look at how buoyant the online sales are during ‘lockdown’ – but it’s the unpaid bills from restaurants that won’t reopen, or who need to ‘re-finance’ – that’s the much bigger elephant in the room…

Agree? Disagree? Anything you'd like to add?

There are 2 responses to “restaurants & the elephant in the room…”

  1. Kent13th May 2020 at 1:47 pmPermalinkReply

    In addition to restaurants which won’t be able to pay their suppliers, some are now entering the retail wine market as sellers of their wine inventory, sometimes without an accompanying food order.

  2. BurgFisher13th May 2020 at 4:17 pmPermalinkReply

    High prices for even average wines, 25% US tariff, a mediocre 2018 vintage, postwar record levels of unemployment and restaurants in deep trouble. Is there hysteresis in today’s market for Burgundy wines?

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