Hello, hello!
I know you’re probably just as eager as the rest of the world to stop hearing the word “tariff.” With the new tariffs in place, there’s been a lot of consumer confusion and I’m here to break down what it all means for those of us in the world of beer, wine, and spirits.
Back in 2019, the administration slapped 25% tariffs on select wines and on materials used (aluminum cans) to package beer. This time around, things look a little different. Tariffs affecting your favorite imported libations range from 10-30%.
So what does this mean? Prices will skyrocket, right? Well, the trickle down effect is taking a bit longer than you might think. Some retail shops, restaurants, distributors, and importers are preemptively raising their prices to curb their cost uncertainties. But we are not. Here’s why:
During the pandemic, the global supply chain was thrown into chaos—supplies were scarce (remember the toilet paper?), and shipments were delayed for months. Importers and distributors kept placing orders to meet demand, but those orders piled up in transit. When the delayed goods finally started to arrive, they were followed by wave after wave of additional shipments, creating a surplus in some categories. In the world of wine and spirits, we’re still feeling the aftershocks. Some of the inventory on shelves today is a direct result of over-ordering during those record-breaking pandemic sales—a ripple effect that’s left certain corners of the industry flush with product.
Does this all mean we won’t see price increases? No. But it does mean that they may not come as fast and furious as you think. We won’t raise any of our prices until those tariffs finally reach us directly. And what does this mean for you? We can all raise a glass knowing that most of our favorite drinks are still affordable.
I hope you’ll come check us out and let us show you some of our favorites!
Cheers!
Dustin Harkins
Manager/Wine Buyer
