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COVID-19 and Global Beverage Markets: Implications for Wine

Published online by Cambridge University Press:  04 October 2021

Glyn Wittwer  and
Kym Anderson Open the ORCID record for Kym Anderson [Opens in a new window]
Glyn Wittwer
Affiliation:
Centre of Policy Studies, Victoria University, 300 Flinders Street, Melbourne, Vic. 8001 Australia; e-mail: glyn.wittwer@vu.edu.au.
Kym Anderson*
Affiliation:
Wine Economics Research Centre, School of Economics, University of Adelaide, AdelaideSA5005, Australia and Arndt-Cordon Department of Economics, Australian National University, CanberraACT 2600
*
e-mail: kym.anderson@adelaide.edu.au (corresponding author).
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Abstract

This article provides an empirical case study of the impacts of the COVID-19 pandemic on global beverage markets, particularly the wine sector. Both international trade and domestic sales have been adversely affected by temporary shifts away from on-premise sales by social distancing measures and self-isolation that led to the closure of restaurants, bars, and clubs, plus declines in international travel and tourism. Partly offsetting this has been a boost to off-premise and direct e-commerce sales. We first estimate those impacts in 2020 and their expected partial recovery in 2021 using a new model of global beverage markets. Further recent disruption to the global wine trade has been the imposition by China in late 2020 of prohibitive tariffs on its imports of bottled wine from Australia. Its diversionary and trade-reducing effects are compared with those due to COVID-19. (JEL Classifications: C63, D12, F14, F17, Q17)

Keywords

beverage market modelingpandemic responses by consumersprohibitive tariffstrade diversion
Type
Articles
Information
Journal of Wine Economics , Volume 16 , Issue 2 , May 2021 , pp. 117 - 130
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press on behalf of American Association of Wine Economists

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Footnotes

The authors are grateful for helpful referee comments and financial support from Wine Australia and the University of Adelaide's Faculty of the Professions and School of Agriculture, Food and Wine, under Research Project UA1803-3-1. This article replaces an early analysis reported in AAWE Working Paper No. 249, May 2020, at https://www.wine-economics.org/wp-content/uploads/2020/05/AAWE_WP249.pdf.

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