{"id":132470,"date":"2025-03-14T07:50:45","date_gmt":"2025-03-14T07:50:45","guid":{"rendered":"https:\/\/peraltafinancing.com\/alcohol\/exclusive-news-and-research-on-the-wine-spirits-and-beer-business-42\/"},"modified":"2025-03-14T07:50:45","modified_gmt":"2025-03-14T07:50:45","slug":"exclusive-news-and-research-on-the-wine-spirits-and-beer-business-42","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=132470","title":{"rendered":"Exclusive news and research on the wine, spirits and beer business"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<h2>Trump Ups Ante On E.U. Drinks Tariffs, Threatening 200% Levy<\/h2>\n<p>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"posted\"><a href=\"https:\/\/www.shankennewsdaily.com\/2025\/03\/13\/\" title=\"Click to see that day's daily archive\">March 13, 2025<\/a><\/span><\/p>\n<p><span class=\"im\">With heightened tariffs looming on both sides of the Atlantic, wine and spirits players at all three tiers are bracing for increased costs and lower margins.<span id=\"more-37069\"\/> This morning, President Trump threatened to levy a 200% tariff on \u201call wines, Champagnes, and alcoholic products coming out of France and other E.U. represented countries.\u201d<\/span><\/p>\n<p>That followed the European Union\u2019s announcement yesterday that on April 1 its previously suspended tariffs on American whiskies will be reinstated at 50%, in response to U.S. levies on steel and aluminum. The E.U. tariffs would return American whiskey producers to the challenges faced during the first Trump administration, when tariffs caused whiskey exports to fall by 20%\u2014or $112 million\u2014between 2018 and 2021.<\/p>\n<p>\u201cReimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in U.S. marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,\u201d said a statement from DISCUS. \u201cWe urge the U.S. and E.U. governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs.\u201d<\/p>\n<p>In the U.S., there are also unspecified \u201creciprocal tariffs\u201d set to be imposed on agricultural products from various countries on April 2, on which Trump this morning upped the ante. Those levies would represent a serious blow for wine and spirits importers, distributors, and retailers already weathering uncertain conditions and tight margins.<\/p>\n<p>A roundtable event hosted yesterday by the U.S. Wine Trade Alliance (USWTA)\u2014a coalition of industry players from all three tiers advocating against tariffs\u2014focused on the potential impacts of heightened trade barriers in the U.S. Restaurateur Andy Fortgang, co-owner and wine director at Oregon\u2019s Le Pigeon &amp; Canard restaurants, laid out plainly the importance of imported wine for America\u2019s fine dining segment, noting that the category accounts for outsized profits.<\/p>\n<p>\u201cWe were just looking back at the last year as we were doing our taxes, and among the three restaurants that I share ownership in, one had a profit margin of 4%, one 6%, and one 9%,\u201d said Fortgang. \u201cWhen you think about how much of that free profit margin is coming from beverage versus from food, we see how squeezing that becomes really difficult and makes the tariffs a profit killer.\u201d<\/p>\n<p>Lisa Perini of Perini Steakhouse in Buffalo Gap, Texas, echoed Fortgang\u2019s concerns about tariffs crushing wine margins. With food costs at current levels, Perini noted that after adding in labor, her restaurant has roughly 10% left to split between overhead and profit.<\/p>\n<p>The panel\u2014which also included USWTA president Ben Aneff; Kelby James Russell of Finger Lakes winery Apollo\u2019s Praise; and Harry Root, president of distributor Grassroots\u2014made a point to highlight that consumers don\u2019t necessarily swap to lower-priced or domestic wines when looking for Bordeaux, for example. \u201cIf the price point is too high,\u201d said Fortgang, \u201cyou just sort of lose that sale.\u201d<\/p>\n<p>For distributors like Root, imported wine is a key driver of profit, as the higher margins he gets on imports allow him to support up-and-coming American wineries he\u2019s passionate about. \u201cAbout 60% of our revenue comes from imported wine, but that revenue represents about 75% of our gross profit,\u201d he said. \u201cWines, in effect, subsidize the success of restaurants in the United States; imported wines subsidize the distribution level in the United States.\u201d<em>\u2014Shane English<\/em><\/p>\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"5\" align=\"center\">\n<thead>\n<tr>\n<td colspan=\"7\" align=\"center\" bgcolor=\"#004279\"><strong>Imported Table Wine Market In the U.S.<\/strong><strong><br \/><\/strong><small>(millions of 9-liter case depletions)<\/small><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th>Origin<sup>1<\/sup><\/th>\n<th>2023<\/th>\n<th>2024E<\/th>\n<th>Percent<br \/>Change<sup>2<\/sup><\/th>\n<\/tr>\n<tr>\n<td>Italy<\/td>\n<td>22.81<\/td>\n<td>21.85<\/td>\n<td>-4.2%<\/td>\n<\/tr>\n<tr>\n<td>France<\/td>\n<td>12.86<\/td>\n<td>12.42<\/td>\n<td>-3.4%<\/td>\n<\/tr>\n<tr>\n<td>New Zealand<\/td>\n<td>7.66<\/td>\n<td>7.67<\/td>\n<td>0.2%<\/td>\n<\/tr>\n<tr>\n<td>Australia<\/td>\n<td>6.56<\/td>\n<td>6.50<\/td>\n<td>-2.2%<\/td>\n<\/tr>\n<tr>\n<td>Chile<\/td>\n<td>3.85<\/td>\n<td>3.84<\/td>\n<td>-0.2%<\/td>\n<\/tr>\n<tr>\n<td>Argentina<\/td>\n<td>3.75<\/td>\n<td>3.43<\/td>\n<td>-8.4%<\/td>\n<\/tr>\n<tr>\n<td>Spain<\/td>\n<td>3.24<\/td>\n<td>3.13<\/td>\n<td>-3.5%<\/td>\n<\/tr>\n<tr>\n<td>Portugal<\/td>\n<td>2.07<\/td>\n<td>2.03<\/td>\n<td>-2.0%<\/td>\n<\/tr>\n<tr>\n<td>Germany<\/td>\n<td>1.65<\/td>\n<td>1.58<\/td>\n<td>-4.3%<\/td>\n<\/tr>\n<tr>\n<td>South Africa<\/td>\n<td>0.75<\/td>\n<td>0.72<\/td>\n<td>-3.8%<\/td>\n<\/tr>\n<tr>\n<td>Other Origins<\/td>\n<td>1.88<\/td>\n<td>1.79<\/td>\n<td>-5.1%<\/td>\n<\/tr>\n<tr>\n<th colspan=\"1\">Total Imported<br \/>Table Wine<sup>3<\/sup><\/th>\n<td align=\"right\">67.16<\/td>\n<td align=\"right\">64.95<\/td>\n<td align=\"right\">-3.3%<\/td>\n<\/tr>\n<\/tbody>\n<tfoot>\n<tr>\n<td colspan=\"7\" bgcolor=\"#004279\"><small>1 Includes some domestic table wine sourced from overseas.<br \/>2 Based on unrounded data.<br \/>3 Addition of columns may not agree due to rounding.<br \/><small><strong>Source: IMPACT DATABANK \u00a9 2025<\/strong><\/small><\/small><\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<p><a href=\"https:\/\/www.winespectator.com\/newsletter\/shankennewsdaily\" title=\"Subscribe to Shanken News Daily\u2019s Email Newsletter\" style=\"display:block; padding:0.56em 0; margin: 0; font-style:italic; font-weight:bold;font-size:1.1em;line-height:1.28;\">Subscribe to Shanken News Daily\u2019s Email Newsletter, delivered to your inbox each morning.<br \/>\n<\/a><\/p>\n<p><span class=\"posted\">Tagged : <a href=\"https:\/\/www.shankennewsdaily.com\/tag\/discus\/\" rel=\"tag\">DISCUS<\/a>, <a href=\"https:\/\/www.shankennewsdaily.com\/tag\/tariffs\/\" rel=\"tag\">Tariffs<\/a>, <a href=\"https:\/\/www.shankennewsdaily.com\/tag\/uswta\/\" rel=\"tag\">USWTA<\/a><\/span><\/p>\n<p><a href=\"https:\/\/winespectator.wufoo.com\/forms\/shankens-impact-databank-2024-order-form\/\" title=\"Order Impact Databank\" class=\"article-promo\">GET YOUR FIRST LOOK AT 2024 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. <span>ORDER YOUR 2024 IMPACT DATABANK REPORTS<\/span>. CLICK HERE.<\/a><\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Trump Ups Ante On E.U. Drinks Tariffs, Threatening 200% Levy March 13, 2025 With heightened tariffs looming on both sides of the Atlantic, wine and spirits players at all three tiers are bracing for increased costs and lower margins. This morning, President Trump threatened to levy a 200% tariff on \u201call wines, Champagnes, and alcoholic [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12029],"tags":[3171,907,1305,1820,10113,16238,9182],"dealstore":[],"offerexpiration":[],"class_list":["post-132470","post","type-post","status-publish","format-standard","hentry","category-alcohol","tag-beer","tag-business","tag-exclusive","tag-news","tag-research","tag-spirits","tag-wine"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Exclusive news and research on the wine, spirits and beer business - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=132470\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Exclusive news and research on the wine, spirits and beer business - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Trump Ups Ante On E.U. 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