Latest news with #JohnBarker
Forbes
01-05-2025
- Business
- Forbes
How Tariff Uncertainty Impacts The Wine Industry
'One in every two bottles of wine is consumed outside its country of origin," says John Barker, International Vine and Wine Organization (OIV) Director General getty Tariffs, trade, and the economy are top of mind for many these days. The wine industry is no exception. While consumers worry over increased prices of groceries and household goods, industry professionals brace for ongoing uncertainty in the global wine market. 'Trade is the lifeblood of the wine industry,' says John Barker, International Vine and Wine Organization (OIV) Director General, in a recent 2024 state of the industry address. 'One in every two bottles of wine is consumed outside its country of origin.' Reflect on that a moment…one in every two bottles. How does an industry that relies so heavily on global trade mitigate the impact of uncertainty and disruption? The answer depends on who's being asked. However, as Eric Asimov wrote in the New York Times, 'Pretty much everybody in the American wine world stands to lose something.' Since early February, President Donald J. Trump has announced, applied, withdrawn, and threatened so many different tariff scenarios it's hard to keep up. The 200 percent tariff threat has not come to fruition. The proposed 20 percent on European Union wine, 30 percent on South African wine, and 17 percent on Israeli wine are currently on 90 day pause. A general 10 percent tariff remains in effect on all imports from every country, including countries that import more goods than they export. Wine is included in this 10 percent. Additionally, Canada and Mexico are facing up to 25 percent tariffs on about half their U.S. exports. Prompting nine of Canada's ten provinces to remove American wine from stores and restaurants. Canada is the U.S. wine industry's biggest export market, at the tune of about $1 billion annually. While China is not a large export market for American wineries, it has been growing steadily—reaching $50 million in 2024. Additionally, many products American wineries use, such as glass, are produced in China. Uncertainty looms as to how long the 145 percent tariffs on Chinese imports will last. At time of publication, President Donald J. Trump indicates these tariffs will 'come down substantially,' but the timeframe remains unclear. 'It was hard to imaging tariffs taking affect at 200 percent,' says Travis Perez, Southern Glazer's Signature Fine Wine Division Account Representative. 'If 25 percent, that would still be detrimental, but can possibly be spread out, with importers and distributors taking a little so the full amount isn't on the consumer. It's so hard to plan because we don't know where the number will actually fall.' The wine (alcohol) industry operates in what is known as a three-tier system. When Perez speaks of spreading out tariffs so the full amount is not passed on to consumers, this three-tier system is what he is speaking of. The fear he shares is small wineries, importers, distributors, and retailers cannot absorb any of the tariff because their profit margins are too thin. 'This could lead to consolidation; employees will be let go,' he says. 'This will also impact domestic producers who rely on distribution to get their wines to retailers and restaurants because the remaining portfolios will expand so that they too will go unsold.' This is key: Tariffs also negatively impact American wineries because they too rely on distribution to reach retailers, and ultimately consumers. Consolidation means more wines for few distributors. Smaller wineries tend to lose in this scenario. 'Wine is non-fungible. You cannot replicate specific communes of Burgundy that were formed over millennia by planetary evolution. The more a wine reflects terroir, the harder it is to replicate.' Nicole Nowlin, Managing Director of Able Brown Augusta, is trying not to be reactive. She is storing what she can, but with a small footprint, the restaurant is unable to house a large wine inventory. She shares Perez's concerns about the impacts of tariffs on small businesses. 'Many importers, producers, retailers and restaurants are small businesses,' says Nowlin. 'Many I know are still recovering from the first round of tariffs in 2018, impacts of Covid, and rising costs in shipping and wine. The margins are so small and the ripple effects are huge. It can take years to recover. Subtext: It Sucks.' Her concern is small importers will have to forgo once a year allocations due to tariff inflated pricing. This risks the importer losing that wine allocation in the future. She fears producers will start selling more to China and other countries, impact many U.S. employees from dock workers, truck drivers, farmers, janitorial staff. 'There are a lot of faces we aren't thinking about who will be impacted. Not to be bleak, but small producers, importers, distributors, retailers, and restaurants will not exist. Is this what we want? We will become an industry of strip malls filled with big chains.' These professionals see wine as communal, connecting over stories and history. 'The more diverse a wine list the more interesting it is to customers,' says Nowlin. 'Wine is hospitality. In the restaurant we interact with our customers over wine, sharing stories of producers or vintage. We can't move everyone to cocktails and maintain the same connection.' Perez agrees, adding, 'Wine is non-fungible. You cannot replicate specific communes of Burgundy that were formed over millennia by planetary evolution. The more a wine reflects terroir, the harder it is to replicate.' Because Dallas's Quarter Acre focuses on Chef Toby Archibald's world travels and New Zealand roots, its wine list largely highlights Australian and New Zealand wine. In the past, this has allowed Jacob Fergus, Assistant General Manager and Beverage Director of Quarter Acres Restaurant, to be less concerned about tariffs. 'When I get a question about tariffs, in the context of dining room service, I usually turn that as a positive for our program which, usually, it is,' he says. 'New Zealand and Australia are not normally targeted in the same group as European Union wine producers so in previous tariff scenarios it has only improve the value proposition for these wines.' Ten percent tariffs are easier for the three-tier system to absorb, but the ongoing uncertainty poses challenges for planning. 'As for business planning, this is the most unpredictable part. Restaurants, with the exception of major national chains, are completely at the mercy of the distribution and supply steps before us with basically no control over the pricing,' he says. 'Wines can change prices without notice, sometimes even to the surprise of the distribution sales reps! The best we can do is react quickly as soon as we see any changes start to happen.' 'Wine is hospitality. In the restaurant we interact with our customers over wine, sharing stories of producers or vintage. We can't move everyone to cocktails and maintain the same connection," says Nicole Nowlin, Managing Director of Able Brown Augusta getty According to the OIV 2024 state of the wine industry address, production and consumption has slumped to its 1961 levels. Tariff uncertainty does not aid this decline. 'Trade is the lifeblood of the wine industry. It's a cultural exchange that is highly diverse and highly connected. It depends on stability, which is more important today than ever,' says OIV's Barker. Terri Burney, founder and owner of Winetastic Wine Bar in Dallas, recalls the 2019 tariffs and spoke to her suppliers in November 2024 to prepare for this round. She says many put wine on ships immediately after the election to be prepared for tariffs. 'As a small business, I can switch up my inventory quickly if need be. Shoot from the hip, as they say,' she says. 'For the next several months all is good. If this continues for years, that's another story.' Italian Wineries Remain Optimistic In Today's Uncertain Wine Market What If The Wine Industry Adopted A First Do No Harm Mentality?
Yahoo
16-04-2025
- Business
- Yahoo
Wine consumption at lowest since 1961
Global wine consumption in 2024 hit its lowest level since 1961, according to preliminary figures from the International Organisation of Vine and Wine (OIV). In its State of the World Vine and Wine Sector in 2024 report, the OIV estimated global consumption in 2024 at 214.2 million hectolitres (mhl), down 3.3% from historic lows in 2023. The OIV called 2024 a "challenging year" and said high prices and declining demand in major markets hit consumption. It added prices were high due to low production volumes and "the lingering effects of past inflation." Fifteen of the world's top 20 markets experienced reduced year-on-year consumption. In China, consumption tanked 19.3% to 5.5 mhl. Consumption there has dropped at an average of 2 mhl each year since 2018, the OIV said. Other countries' wine consumption habits have fluctuated far less, with consistent figures in the top five consuming markets of the US, France, Italy, Germany and the UK. That said, consumption fell in four of those five markets in 2024 year-on-year, save for Italy where consumption was level. In the world's largest market, the US, consumption decreased by 5.8% to 33.3 mhl. Canada told a similar story, where consumption fell 6.4% to 4.6 mhl. Notably, in Argentina consumption fell to 7.7 mhl, its lowest level since 1942. Future wine demand has to contend with evolving lifestyle preferences, shifting social habits and generational changes in consumer behaviour, the OIV said. Other factors like the Covid-19 pandemic and the Ukraine conflict, it said, had also contributed to a troubled global market. OIV director general John Barker said the wine sector had to adapt. 'Working together to develop solutions to climate change and making wine a beacon of sustainability, investing in research on new audiences so that we can see wine through their eyes, reinforcing our commitment to multilateralism and global trade: These are the elements that will lead the wine sector forward," he said. Wine production also decreased to its lowest level since 1961. The OIV estimates 2024 wine production excluding juices and musts at 225.8 mhl, marking a 4.8% fall year-on-year. In 1961, 219 mhl were produced due to spring frosts in Southern Europe. Production fell year-on-year by 17.2% in the US, 17% in China and 15.6% in Chile and 9.8% in Germany. Bucking the trend, production in Russia grew 19.3%, while in minor producer Georgia production spiked 26.6%. "Atypical meteorological events" such as early frost, heavy rainfall, and prolonged drought impacted vineyard productivity dramatically, the OIV said. Global wine export volume remained at its lowest level since 2010, totalling 99.8 mhl, down 0.1% compared to 2023. Global export value is estimated at €35.9bn ($40.8bn), a slight decline of 0.3%, the OIV said. "Wine consumption at lowest since 1961 – OIV" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
15-04-2025
- Business
- Yahoo
Global wine output and demand fall to lowest in decades
By Sybille de La Hamaide PARIS - Global wine production and consumption fell in 2024 to their lowest in decades, as extreme weather and high prices weighed on the sector, the International Organisation of Vine and Wine, known as the OIV, said on Tuesday. Adding to the challenges, wine producers around the world are under threat from tariffs for sales into the United States, the world's largest importer of wine by value. Wine consumption fell 3.3% globally to an estimated 214 million hectolitres, the lowest since 1961, as inflation and reduced consumer spending power eroded demand. Generational changes in consumer behaviour and a fall in Chinese consumption, once a major driver, have also played their part in reducing wine drinking since 2018, the OIV said. Global wine production dropped 4.8% to 226 million hectolitres, the lowest level in over 60 years and below the OIV's initial estimate of between 227 mhl and 235 mhl projected in November last year. A hectolitre is the equivalent of 133 standard wine bottles. As in 2023, reduced output, particularly in Europe and parts of the Southern Hemisphere, was caused by adverse weather and disease, OIV Director General John Barker told reporters. The surface area of vineyards contracted by 0.6% to 7.1 million hectares in 2024, the fourth consecutive year of decline. The reduction reflects ongoing structural changes, including the removal of vineyards, to grow grapes for wine and other products, in both hemispheres. Among the seven countries with the largest areas of vineyards in the world, only Italy, the largest wine exporter by volume, recorded positive growth - at 0.8%. Despite the reduced volumes, higher average prices supported the market in value terms. International wine trade was at its lowest level in volume since 2010, pressured by high prices and weakened demand, but it grew in value as premium segments proved more resilient. Exports totalled 99.8 million hectolitres, matching 2023 levels but falling 5% below the five-year average. Export value increased to 35.9 billion euros ($38.9 billion), driven by stable record-high prices averaging 3.60 euro per litre. Of this, wine import value in the United States totalled 6.3 billion euros last year, up 1.6% on 2023, far ahead of the United Kingdom at 4.6 billion euros and Germany at 2.5 billion. Sign in to access your portfolio
BBC News
11-02-2025
- BBC News
Bradford police lack time to 'fish' online for illegal driving
Police have said they do not have the resources to "fish" through social media posts of dangerous driving in Bradford. Keighley residents have been urged to submit photos and videos of bad driving and illegal parking to officers as part of the district's road safety initiative, but they have been posting them to community Facebook pages instead. A West Yorkshire Police spokesperson said it was important that such content was shared in the correct place to make sure offenders could be prosecuted. They added: "The other issue is we don't always know who took the picture and when." The initiative, called Operation Snap, relies on the vehicle and driver being identified so they can be dealt with by the a recent Bradford Council meeting, Insp John Barker from the constituency's neighbourhood policing team added: "You'll often see the same picture shared on pages like Born in Keighley or Raised in Silsden and you don't know where the original image has come from."Meanwhile officials in the area are also about to sign off on hi-tech enforcement cameras in the city centre to target "inconsiderate" drivers who flout rules at yellow box junctions or make banned new measures will be piloted at two spots in the city centre before being rolled out elsewhere, according to the Local Democracy Reporting Service. ANPR cameras will be put at the yellow box junction at Godwin Street and Sunbridge Road, and at the current "no right turn" restrictions at the junction of Shipley Airedale Road and Leeds to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North or tell us a story you think we should be covering here.
Yahoo
09-02-2025
- Yahoo
Cameras cutting speed on 'Fast and Furious' road
Introducing average speed cameras on a road where drivers were accused of trying to "recrate scenes out of the Fast and Furious franchise" has led to a "marked change", according to police. Insp John Barker, from the Keighley Neighbourhood Policing Team, said the devices on the Bingley Bypass had proved more effective than days of action or police operations. He said: "If you see a police camera van on a road you will think twice about speeding on there. The average speed camera on the Bingley Bypass has had a marked change on driver behaviour." The cameras were installed in 2024 after years of calls for action on the road, with one driver caught travelling at 115mph (185km/h) on the road. Speaking at a meeting on Thursday, Insp Barker said he would like to see the scheme extended to the Steeton and Silsden Bypass. When the cameras were fitted on the Bingley Bypass last spring they were the first average speed cameras in the district, according to the Local Democracy Reporting Service. The £230,000 scheme was installed between Cottingley and Keighley - along Sir Fred Hoyle Way and Airevalley Road - at the same time as a reduction in the speed limit from 70mph (112km/h) to 50mph (80km/h) It came after a council meeting in 2022, when one Bingley councillor claimed drivers use the road to "recreate scenes out of the Fast and Furious franchise". Instead of recording a vehicle's speed at a single moment, the series of cameras works out a vehicles average speed over a long stretch of road. At the meeting, councillors were told that between April 2024 and January 2025 the operation had led to: 378 traffic offence reports/summons for speeding 139 traffic offence reports/summons for other offences (including mobile phone use, not wearing a seatbelt, no insurance and no licence) 35 vehicles seized eight arrests There were also numerous days of action by West Yorkshire Police's Operation Steerside, including operations in the Keighley West ward based on concerns over off road and nuisance motorbikes. The meeting heard while the days of action had born fruit, it was often the introduction of speed cameras or police speed vans that proved most successful in preventing dangerous driving. Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North or tell us a story you think we should be covering here. £230k speed cameras aim to cut 'racing' on bypass Local Democracy Reporting Service
