Social distancing may have a detrimental impact on wine-and-spirits producers
your columnist joined a sailing trip to Islay, an island in western Scotland famous for peaty malt whisky that can singe the hair off your nostrils. The mooring was in front of a distillery called Ardbeg, its name painted in huge black letters on a whitewashed wall facing the sea. Its breakfast included haggis—and a dram of scotch. Then came the distillery tour, and more samplings. Even at midnight, the air reeked with the smoky vapours coming from the mash tun.
Yet the greatest effervescence was at the hipster level. Innovation, in the form of craft beers, locally distilled gins and mezcal bars, fizzed with the energy of the cocktail age in late 19th-century America. That helped revitalise gourmet culture and inner-city life . The immediate reasons for this are social distancing and economic hardship. The first may have the more detrimental impact on wine-and-spirits producers. They are overwhelmingly reliant on bars, nightclubs and duty-free shops, where markups of 30% are common, to encourage consumers to experiment with fancier tipples. Such “premiumisation” is crucial for profits, observes Mark Meek, who runsDrinks Market Analysis, a data-gatherer.
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