The Covid-19 outbreak, as we all know, has affected the drinks industry in various ways. The industry has been affected in all aspects - and everyone is finding a way to get through it. However, as usual, our industry is one that always always comes out strong. Everyone, including, wineries, distilleries, breweries, retailers, importers, distributors, and anyone else in the supply chain is constantly working to find ways to sustain during this time.

Beverage Trade Network conducted a survey where industry professionals answered three main questions related to the current situation.

► Apart from your staff’s safety, what are your plans and priorities ahead?

► What will be your focus for the next 3 months?

► How do you plan to manage staff and operational costs in the next 3 months?

Over a short period of time, the survey received a plethora of answers from industry professionals, who shared what they are doing currently, and what they are going to be doing to sustain their businesses. Here, we break down each of the three questions, and talk about how the industry is deciding to move ahead.

1. Apart from your staff’s safety, what are your plans and priorities ahead?

For every business, and every leader, the safety of their staff is undoubtedly the most important thing - and companies across the industries are taking measures to make sure their staff is safe. However, the next thing for them is to see what they can do during this time. With many practicing social distancing, and some states lawfully going on lockdown, most places are closing down - so what is the industry set to focus on next?

According to the survey carried out by Beverage Trade Network, three of the main things that the industry’s answers revolved around were: 

• Going more digital

• Shutdown plans

• Bottling more due to retail rush

8.9% of industry professionals said that they are bottling more of their wines, beers, and spirits due to the retail rush. Since the on-premise sector is pretty much shut down right now, the retail rush is heavy. Due to social distancing and lockdown, consumers seem to be stocking up on wine, beer, and spirits - which is increasing retail rush. So, for a lot of brands, wineries, distilleries, and breweries, the retail sector is becoming their main source of income, and the demand is high as well. To meet this demand, they’ve said that they are constantly bottling more due to the rush in the retail sector - not only in-store, but also with deliveries. 

Right now, a lot of people are sitting at home, and there isn’t really much that they can do. However, what they can do is gain power digitally. According to BTN’s Covid-19 survey, 37.8% of industry professionals said that they are going to go digital. This makes complete sense, as right now, digital media is the most powerful tool both brands and retailers can use. For brands, going digital means gaining visibility for their brand during this time. Brands are using this time to go digital, show up in front of their audience, engage with their audience, and build credibility for themselves. Retailers on the other hand are using digital platforms to start online delivery for customers, and also increasing their presence in the eyes of consumers.

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On the other hand, 20% of people said that they are planning to shut down. This mostly includes those who don’t have a large retail presence, and those with a larger on-premise presence. Meanwhile, a small percentage of people’s answers included:

• Servicing retail accounts until they shut down

• Making hand sanitizer

• Staying open as long as they can

• Cutting down staff by 80%

• Adjusting to retail rush 

• Supporting customers as much as possible

2. What will be your focus for the next 3 months?

Apart from what’s happening right now, we don’t really know what’s going to happen next. However, the industry is preparing for what’s coming next with a plan for the next 3 months. As far as news confirms, we don’t know how long this is going to go on for, but the next 3 months are said to be crucial for the industry. 

BTN’s Covid-19 survey clearly shows that a high percentage of people are going to be focusing on touching their current customers, 25.2% to be numbered. This is going to be done both digitally and those who can keep their establishments open will be doing it through that. Retailers and brands both reach out to their current customers by offering them deals, discounts, and new products if possible. Importers are also pushing to keep themselves afloat by building their relationships with their current accounts, and working with them to see what they can do.

17.8% of survey takers said that they are going to focus on e-commerce sales. During this time, the internet is going to be the most powerful tool for a lot of us. With people not stepping out, making the most of e-commerce is what is going to prove to be beneficial. For a lot of brands and retailers, they’re going to go completely online and offer their services to customers by selling their products and offering delivery. Similarly, 8.1% of survey takers said that they are going to focus on DTC channels, which once again rounds up to e-commerce, online sales, and direct deliveries. For breweries and wineries that have a license to sell directly to their customers, this is going to be a positive side, however, for those who don’t, they’re definitely going to have to sign up with DTC channels such as Drizly, Tap Rm, and others. 

Meanwhile, 6.7% of people are going to continue focusing on social media and building their presence, while others have said they are going to focus on the following:

• Current rush orders

• Content creation

• Lead generation

• Improving efficiencies 

3. How do you plan to manage staff and operational costs in the next 3 months?

With things changing, cost is going to be a major hurdle for most people in the industry. The real question is, how are they going to manage staff and operational costs? A lot of businesses are stuck in this exact spot, wondering what’s going to happen since staff and operational costs tend to be the two most important parts of the business. 

BTN’s Covid-19 survey found that 28.9% percent of people are going to be keeping their staff with no layoffs, 28.9% are going to be having their staff work from home at a lower salary, and unfortunately, 20.7% will be laying off a good amount of their staff. Even though layoffs aren’t the best news, the survey did show that a majority of businesses will be keeping their staff, even if they are going to have them work at a lower salary.  A small percentage of survey takers also said that they’re not sure about staff and operational costs at this point. A good percentage of people also said that they would have their staff work from home with the same salaries, along with planned visits to the office if and when possible. 

As you can see from the data shared above, BTN’s Covid-19 survey has been successful at getting valid and operational responses from industry professionals. The main idea behind this survey was for the industry to get together and help each other at this point. The answers of the survey are going to be compiled and sent to all survey takers, so they can see what others are doing - which will help in sustaining their businesses during this time.

Source: BTN Covid-19 Action Plan Survey

If you’re looking to help others during this time with what you are doing as a business, or want insights for your business as well, then take the BTN Covid-19 Action Plan Survey and receive a bundled report of what the industry is doing.