As I’m out seeing customers in Massachusetts, people frequently ask me how it’s going, pretty much knowing the answer. The best metaphor for the state of wine importing/distribution right now is that it’s like having the check tire light on in your car. You can continue driving, but you either have to keep refilling it with air or have it patched (or replaced).
As you have probably read in the NYT, The Guardian, or The Economist, wine sales have been sluggish since the pandemic. Most people are drinking less for a myriad of reasons, including health risks, aging Boomers, Gen Z missing out on social drinking during the pandemic, legalized marijuana, and Ozempic. However, no one in any industry needs extra hurdles like those created by Trump’s tariffs.
The cost of doing business under the Trump administration is approximately 25-30% higher than it was a year ago. Between the 15% tariff and a Euro that costs about 15-17 cents more than it did in Jan, 2025, fierce competition in the wine business makes it nearly impossible to simply pass higher costs off to customers. While somms, wine buyers, and distributors can source cheaper wines readily, the relationships behind wine importing and direct distribution take months, if not years to create.
Some growers are graciously absorbing a portion of the tariffs—but many are not, depending on multiple factors—and resources are running thin for everyone. Inventory that was front-loaded has been sold down, and new inventory is increasingly expensive to bring in. Production costs are up for everyone and the cost of working capital—air for the tires—is pricey for small businesses.
So this is where we are: fighting to hold up what we have built as politicians push to further delay the Supreme Court’s decision on tariffs until July. It’s like winter has just begun, and the car’s tire pressure gauge is broken. Thankfully, people may drinking less, but they are drinking better—which actually helps businesses like my own.
REMINDER: YOUR DOLLARS REFLECT THE WORLD YOU WANT TO LIVE IN. Hopefully that includes the diverse ecosphere of small businesses that are not the Amazons of their respective industries.
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