COVID-19 Impact on Craft Spirits in Food and Beverages Industry
MARKET OVERVIEW:
Craft spirits are handcrafted spirits produced with small distilleries with less distillation process. Various spirits such as whisky, rum, vodka, gin, and tequila are majorly consumed across the entire continent. The majority of the small distilleries have been focused on produced handcrafted gin due to their increasing demand in the bars and taste tours. Most craft distillation uses their local ingredients as most distilleries distribute their crafts in the local market. The United States majorly occupies the demand of the craft distillers. The total number of current working craft distillers in the USA is approximately 2,046 in 2019 from 1,835 in 2018. According to the American Craft Spirits Association (ACSA), the American craft spirit share's current volume share is approximately 5.6% of the total spirits market and has registered the highest growth rate in any liquor up-to 25% to 30%. The increased demands for local flavor spirits and growing consumption of handcrafted spirits have boosted the market's growth.

COVID-19 IMPACT ON CRAFT SPIRITS:
The Novel COVID-19 has crushed over the craft spirits industry due to forceful shutdown of craft distilleries and extended lockdown of distilleries in initial days. The craft spirits business had to step out with challenging decisions, such as the shutdown of testing rooms, production closures, and employees' furloughing. The spirits are imported from European countries such as the United Kingdom, Germany, Ireland, Italy, France, and Spain. However, before the pandemic, the U.S. government has imposed a 25% hike in the tariff charges of the spirits such as whisky, liqueurs, and cordials imported from European countries to boost the production market in American countries itself. The drastic hike has devasted the small craft spirits business, which was already struggling to sustain itself in the market.
• According to the Distilled Spirits Council of the United States (DISCUS) and American Distilling Institute (ADI) has predicted that there is a fall in the consumption of craft spirits, estimated up to USD 700 million in 2020. Moreover, the employees associated with the craft distillery have left approximately 31% counting 4,600 employees due to the absence of on-premises sales and closing of tasting rooms.
The craft spirits was high as liquor stores were likely to drive the sale compare to the branded spirits as growing attribution of tasting rooms and gift shops. Read in detail..