The Coronavirus outbreak is causing a high degree of uncertainty and concern across the globe.With >80K cases and close to 3K deaths so far, the overall fatality rate is less than most outbreaks which reach global news. However, given the nature of the virus, which is not always severe, experts expect that some 40 to 70 percent of people will be infected within the coming year.
Markets have reacted to the outbreak; stock indices fell this week. Some experts believe that if the virus becomes pandemic in Europe and the US, it could lead to global recession. Companies like Apple and Microsoft have issued warnings about the impact of the virus on earnings expectations.
So you might be wondering, how will Coronavirus impact the global wine industry?
In short, the wine industry is not insulated from the risk. China comprises a large portion of the wine market and the luxury market. Bordeaux wines reportedly experienced a 38.3% fall in the week ending February 13th, Australian exports were down 90% over January and February, and imports have slowed to a trickle. With the outbreak in Italy, the impact may only continue to increase.
There are some companies experiencing growth as a result of the global concern -- in particular, alcohol delivery companies have seen 50% growth over February as fewer diners and drinkers head out of the house.
Sources:
https://www.forbes.com/sites/katedingwall/2020/02/25/coronavirus-leaving-the-wine-industry-dizzy/#262fdf766670
https://knowledge.wharton.upenn.edu/article/will-coronavirus-impact-global-economy/
https://www.theatlantic.com/health/archive/2020/02/covid-vaccine/607000/
Interesting point that the home delivery of wine should spike in the face of the rise of Coronavirus. Same seems to be holding true for Peloton/Peloton stock in the face of more people wanting to stay home.
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