Coronavirus: Small wine producers find online lockdown sales 'busier than Christmas'
Thursday, 9 April 2020
Sales at small wineries have risen during the coronavirus lockdown, with some claiming it's 'busier than Christmas', thanks to local support.
Several wineries in west and northwest Auckland say they have experienced a significant increase in online sales but despite this, some have had no choice but to apply for government assistance to help their businesses.
Soljans Estate Winery in Kumeū said its online sales were doing much better than expected despite the lockdown.
Tyler Soljan said the business had at least four to five orders a day from customers, some from as far as Bluff, at the bottom of the South Island.
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But it still had to apply for government assistance and was granted $216,000 for 35 workers.
'The reality is most of everything has stopped operating. Our supply to restaurants has stopped, our cafe has closed,' Soljan said.
'But our online sales have improved, it's busier than Christmas. During this time, any sale is good,' Soljan said.
Soljans is one of six wineries in West Auckland that have banded together during the lockdown.
Collectively known as Wineries Out West, the group also includes Babich Wines, Coopers Creek Winery, Kumeū River Wines, The Hunting Lodge Winery and Westbrook Winery.
Westbrook Winery's Suzanne Jones said on-premise sales had been heavily impacted because of closures and everyone was feeling the pinch because they relied on the hospitality and restaurant industries.
'Online sales increases only go part of the way to addressing total revenue loss,' Jones said.
'Prior to the shutdown, on premise sales were still very strong as we were experiencing great post summer weather, and these sales carry a higher mark up than online sales.'
Wineries Out West has been working on ways to counter its loses by promoting online sales, offering wine specials and free freight for customers.
In the past two weeks, online sales have had an increase of 400 to 500 per cent, comparable to sales during the traditional Christmas period, Jones said.
'A significant percentage of the online sales have been from customers who would normally come into our cellar doors to purchase directly,' she said.
'We are thrilled that so many people in our community are choosing to support local by purchasing our wines online.'
She said smaller wineries, such as those in Wines Out West were able to turn around online sales fast and deliver to customers through contactless couriers efficiently, much faster than supermarkets and other bottle shops.
'Usually around this time, business would be booming with our cellars, restaurants and cafes open. We'd all be looking forward to the massive Easter weekend.'
Overall, revenue is significantly down for their wineries – more than the 30 per cent threshhold for the wage subsidy, she said.
'At the same time, employees who are not able to work continue to be paid, plus winemaking of the 2020 vintage has been allowed to continue as an essential activity, incurring significant cost now at a time when revenue is down.'
New Zealand Wine Growers chief executive Philip Gregan said about 55 per cent of its members had or intended to apply for government's wage subsidy.
'That should give you a fair idea of how the industry is faring,' Gregan said.
'We expect those numbers to get higher as this lockdown continues.'
Like every other industry, Gregan said the lockdown was having a dramatic impact on the wine sector.
He said he was happy the lockdown did not affect harvest, which he said would be an absolute vintage.