Craft Brew News # 70 – Coronavirus’ Negative Impact on Beer

Craft Beer Storm

Craft Brew News 03/20/20
(Stories courtesy of www.Brewbound.com)
99% of Craft Brewery Businesses Being Impacted by COVID-19, Brewers Association Survey Finds
Virtually every craft brewery is feeling the economic crunch from the coronavirus disease COVID-19, according to the results of a survey conducted by the Brewers Association (BA).
According to the survey, 90% of breweries said COVID-19 had already impacted on-site sales at their businesses, 58.8% said it had affected distribution orders and 89% said it had manifested in canceled events. Just 1% of beer companies said they had seen no impact.
More than half of the companies surveyed by the BA (57.7%) said they anticipate laying off workers due to COVID-19, while 31.3% were unsure. Only 9.5% of the companies that responded said they do not anticipate cutting jobs.
Craft Brewers Turn to Online Ordering, Delivery Programs and More as On-Premise Consumption Ceases
With mandated shutdowns of bars, restaurants and taprooms in more than 20 states and voluntary closures in many others, the novel coronavirus has forced craft brewers to get creative in getting their beer to consumers.
The governors of New Jersey, New York and Connecticut have loosened restrictions on the sale of alcoholic beverages to go from on-premise accounts, which allows craft breweries in those state to offer delivery.
Although breweries are permitted to offer delivery, all deliveries must be completed by the license holder, so breweries cannot use third-party services such as DoorDash or UberEats. The brewery has added an ordering portal to its website, so consumers can purchase cans, merchandise and gift cards.
NYC Mayor Says On-Premise Shutdown Could Last ‘Months’; Bars and Restaurants Mandated Shutdown in at Least 20 States
The on-premise shutdown of bars and restaurants in New York City could last for “months” in an effort to stop the spread of the coronavirus disease COVID-19, New York City Mayor Bill De Blasio said during an interview with CNN this morning.
De Blasio said the shutdown of on-premise dining and drinking at bars and restaurants is likely to last for several months, and could even drag on into September.
In the interim, most states are allowing takeout and delivery options. In New York, Connecticut and New Jersey, licensed establishments are allowed to sell alcoholic beverages to-go during the shutdown.
Pennsylvania has also shutdown liquor stores.
Guinness has pledged $500,000 through its Guinness Gives Back Fund to “help the communities where we live, work and celebrate.” And Jameson has also pledged $500,000 to support the United States Bartenders’ Guild, which has implemented a “Bartender Emergency Assistance Program.” Additionally, Jameson said it would match donations of up to $100,000 through March 31 made to the guild.
Brewers Association’s Bob Pease Discusses Canceling CBC
The Brewers Association (BA) made the difficult decision Thursday to cancel the 2020 edition of the Craft Brewers Conference & Brew Expo America, as well as the World Beer Cup competition, due to concerns over the spread of the coronavirus disease known as COVID-19.
Brewbound caught up with Bob Pease, the trade group’s president and CEO, to discuss the decision and the fallout.
Bob Pease said: We were trying very hard to balance the public health and public safety priority versus not giving into what felt like at some levels, some level of media-driven hysteria. But we were watching the information from the CDC, and the World Health Organization, and then the health authorities in the city of San Antonio. Dr. [Anthony] Fauci of the National Institute of Health and the head of infectious diseases in this country, when he came out and said large gatherings are basically just a bad idea, that was a key indicator for us. And then, really, the 24 hours starting at some point Wednesday, the President’s speech, the decision by the National Basketball Association to postpone their season, and then quickly followed on by NHL, Major League Baseball, so that 24-hour period was really the tipping point for us.
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