Fine Wines/Champagne and Spirits in Indonesia

2020 IMPACT

Social distancing places pressure on sales of fine wines/champagne and spirits

The large-scale adoption of social distancing restrictions in response to the COVID-19 pandemic led to a deep slump being registered in sales of fine wines/champagne and spirits during 2020. This was mainly because the COVID-19 pandemic and the official response to it reduced the opportunities for consuming fine wines/champagne and spirits to vanishing point for much of the year.

The postponement of celebrations and social gatherings further undermines demand

Another factor that drastically undermined demand for fine wines/champagne and spirits in 2020 was that virtually all weddings, family reunions and other major celebration of gatherings scheduled during the year were either cancelled or postponed. With socialising frowned upon due to the sombre national mood and with many people very concerned that attending such a major celebration would raise the risk that they would contract the COVID-19 virus or spread it among their friends and family, demand dropped like a stone across the category.

The strong shift in category sales to e-commerce motivates regulatory action

The unavailability of store-based retail channels and the principles of social distancing due to the COVID-19 pandemic during 2020 led to a major increase in the popularity of marketing and selling alcoholic drinks, including fine wines/champagne and spirits, via the internet. This trend inevitably attracted the attention of the government and various other regulatory bodies in a country with a high Muslim population and a relatively strict approach to the regulation of the sale and consumption of alcohol.

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