Berserker Quarantine Relief forum posted

ToddFrench · March 16, 2020, 4:04am

Since its inception, Wine Berserkers has championed the small producer in the wine industry, as well as other small businesses related to wine (gourmet foods, wine accessories, etc) and now our friends in the wine industry who own small businesses have been presented with a great burden during the mandatory closures of wineries and bars. In the spirit of Wine Berserkers, and the shadow of BerserkerDay, let’s show our support and help our friends in this industry, supporting them with our business.

This forum will be open to all small businesses in the wine industry. Tentatively we’ll close it in 2 weeks, but let’s see how things go…

Winery owners/small business owners, feel free to post your threads/offers in that forum, and let’s see if this community can help you out a bit.

Scott_Watkins · March 16, 2020, 4:06am

Robert.A.Jr · March 16, 2020, 11:23am

Thanks for doing this, Todd, Jorge and Fu. Kudos to you guys for building an important community, one that transcends just board talk. You make a difference.

Jim_F · March 16, 2020, 12:06pm

Good idea!

Robert.A.Jr · March 16, 2020, 5:11pm

Bump. Some cool offers being posted.

Siun_O_Connell · March 16, 2020, 11:02pm

Super cool idea - thanks Todd!

Karen_Troisi · March 17, 2020, 12:11am

Much appreciated Todd!!!

Jim_Anderson · March 17, 2020, 6:03pm

Thanks to Todd and, really, everyone here. It took us a day or so to get something up. We are somewhat short-staffed (no worries) and it took a little something to get this all set up and live on our website but I think we have it ready to go finally. Glad folks are finding unique ways to keep on keeping on. Be safe.

Bob_Hughes · March 17, 2020, 6:46pm

Thank you, Todd & team, for the great idea - this is one crazy time, and while a lot of people are probably thinking what can be done, this is a small gesture by the members that can be a big help to some small businesses. I saw the Walter Scott thread last night, and now Jim Anderson in the house with some Muscat Ottonel.

Chris_Seiber · March 17, 2020, 7:28pm

Sorry that this is probably a dumb question, but are wine sales being heavily affected by the current situation? I know that it affects workers (e.g. tasting room employees), but how and to what extent are businesses and sales being impacted?

Please don’t take any negative inference from my post, it’s just an earnest question. Thanks for any data or anecdotes about what is going on.

Jim_Anderson · March 17, 2020, 8:33pm

I am expecting orders from distributors to drop to zero for the foreseeable future. Let’s say that’s 3 months and I think that’s an optimistic view of things. That’s well over $500,000. We have closed the tasting room and I doubt any April or May events here are happening and would be surprised if we head into June or even July with any sort of re-opening going on. Let’s say we are closed up through May only. Yes, people will order online and call us and stuff. Still. I would expect a decline of, at minimum, 66%. Pessimistic? How am I supposed to know? For just 2 months that would be well over $100,000. So, in a best case scenario where things throttle back up in June we are down in revenue by close to $1,000,000. We are not a big winery. And, basically every expense we have lined up for the next 3 months other than, apparently, our 4/15 (and possibly 6/15) quarterly estimated tax payment still exists. We are maybe large enough that we can absorb something around that but that would leave us in an utterly different situation with respect to our banking and loan covenants than we are right now.

I don’t know how smaller wineries are going to do it. I don’t know how any place is going to do it if it goes beyond what I just described. Start getting into late summer and the expense of bottling comes into play (say, $25/case give or take and at 15,000 cases that’s a big bite with little revenue). Not sure how much of the trillion dollars in relief is headed the wine industry way but I am doubting we are at the top of the list.

Chris_Seiber · March 17, 2020, 8:40pm

Sorry that this is probably a dumb question, but are wine sales being heavily affected by the current situation? I know that it affects workers (e.g. tasting room employees), but how and to what extent are businesses and sales being impacted?

Please don’t take any negative inference from my post, it’s just an earnest question. Thanks for any data or anecdotes about what is going on.

I am expecting orders from distributors to drop to zero for the foreseeable future. Let’s say that’s 3 months and I think that’s an optimistic view of things. That’s well over $500,000. We have closed the tasting room and I doubt any April or May events here are happening and would be surprised if we head into June or even July with any sort of re-opening going on. Let’s say we are closed up through May only. Yes, people will order online and call us and stuff. Still. I would expect a decline of, at minimum, 66%. Pessimistic? How am I supposed to know? For just 2 months that would be well over $100,000. So, in a best case scenario where things throttle back up in June we are down in revenue by close to $1,000,000. We are not a big winery. And, basically every expense we have lined up for the next 3 months other than, apparently, our 4/15 (and possibly 6/15) quarterly estimated tax payment still exists. We are maybe large enough that we can absorb something around that but that would leave us in an utterly different situation with respect to our banking and loan covenants than we are right now.

I don’t know how smaller wineries are going to do it. I don’t know how any place is going to do it if it goes beyond what I just described. Start getting into late summer and the expense of bottling comes into play (say, $25/case give or take and at 15,000 cases that’s a big bite with little revenue). Not sure how much of the trillion dollars in relief is headed the wine industry way but I am doubting we are at the top of the list.

Wow. Why are distributors going to stop buying from you? Just the overall job/stock market/economy slowdown?

Jim_Anderson · March 17, 2020, 8:51pm

Sorry that this is probably a dumb question, but are wine sales being heavily affected by the current situation? I know that it affects workers (e.g. tasting room employees), but how and to what extent are businesses and sales being impacted?

Please don’t take any negative inference from my post, it’s just an earnest question. Thanks for any data or anecdotes about what is going on.

I am expecting orders from distributors to drop to zero for the foreseeable future. Let’s say that’s 3 months and I think that’s an optimistic view of things. That’s well over $500,000. We have closed the tasting room and I doubt any April or May events here are happening and would be surprised if we head into June or even July with any sort of re-opening going on. Let’s say we are closed up through May only. Yes, people will order online and call us and stuff. Still. I would expect a decline of, at minimum, 66%. Pessimistic? How am I supposed to know? For just 2 months that would be well over $100,000. So, in a best case scenario where things throttle back up in June we are down in revenue by close to $1,000,000. We are not a big winery. And, basically every expense we have lined up for the next 3 months other than, apparently, our 4/15 (and possibly 6/15) quarterly estimated tax payment still exists. We are maybe large enough that we can absorb something around that but that would leave us in an utterly different situation with respect to our banking and loan covenants than we are right now.

I don’t know how smaller wineries are going to do it. I don’t know how any place is going to do it if it goes beyond what I just described. Start getting into late summer and the expense of bottling comes into play (say, $25/case give or take and at 15,000 cases that’s a big bite with little revenue). Not sure how much of the trillion dollars in relief is headed the wine industry way but I am doubting we are at the top of the list.

Wow. Why are distributors going to stop buying from you? Just the overall job/stock market/economy slowdown?

Every bar and restaurant in America is basically closed. How much revenue do you think they’re down? New York is looking at a “shelter in place” measure that is likely to happen in many places.

Merrill_Lindquist · March 17, 2020, 8:53pm

It’s all a chain reaction. Tasting rooms are closed, so no revenue there. Restaurants in many places are closed, so no wine sales there. No need to re-order from the wineries. Distributors sell to retailers and restaurants, and if those establishments are closed, there is no place for the distributors to place the wines. So no need to order more wine. It is a pretty simple (but dreadful) model.

ToddFrench · March 17, 2020, 9:11pm

Sorry that this is probably a dumb question, but are wine sales being heavily affected by the current situation? I know that it affects workers (e.g. tasting room employees), but how and to what extent are businesses and sales being impacted?

Please don’t take any negative inference from my post, it’s just an earnest question. Thanks for any data or anecdotes about what is going on.

I am expecting orders from distributors to drop to zero for the foreseeable future. Let’s say that’s 3 months and I think that’s an optimistic view of things. That’s well over $500,000. We have closed the tasting room and I doubt any April or May events here are happening and would be surprised if we head into June or even July with any sort of re-opening going on. Let’s say we are closed up through May only. Yes, people will order online and call us and stuff. Still. I would expect a decline of, at minimum, 66%. Pessimistic? How am I supposed to know? For just 2 months that would be well over $100,000. So, in a best case scenario where things throttle back up in June we are down in revenue by close to $1,000,000. We are not a big winery. And, basically every expense we have lined up for the next 3 months other than, apparently, our 4/15 (and possibly 6/15) quarterly estimated tax payment still exists. We are maybe large enough that we can absorb something around that but that would leave us in an utterly different situation with respect to our banking and loan covenants than we are right now.

I don’t know how smaller wineries are going to do it. I don’t know how any place is going to do it if it goes beyond what I just described. Start getting into late summer and the expense of bottling comes into play (say, $25/case give or take and at 15,000 cases that’s a big bite with little revenue). Not sure how much of the trillion dollars in relief is headed the wine industry way but I am doubting we are at the top of the list.

A sobering post.

Know that I’ll keep this forum running as long as it takes to help in any little way possible

Chris_Seiber · March 17, 2020, 9:27pm

Of course. Great point.

Nice job making this happen, Todd.