Attention! An average of more than 5,000 wineries could close their stores due to the high crime and low sales reported so far this year, as reported by the president of the Peruvian Winery Association, Andrés Choy, who stated that during the year 2023 due to extortion and threats, an average of 2,600 wineries were forced to close.
Likewise, another of the factors that predicts the closure of these businesses is the Selective Consumption Tax. (ISC), in products such as beer, which is one of the moderately strong incomes to keep your income afloat.
Economic recession and climate affect the various wineries
There are various factors that put more than 535,000 wineries in a crisis situation. The economic recession during the year 2023, confirmed by the then Minister of Economy, Alex Contreras, is one of the factors why people avoid making unnecessary expenses. Likewise, the climate factor is also part of the problem. According to figures from the Peruvian Winery Association, ice cream consumption decreased by almost 60%, followed by beer consumption with 55%, grocery consumption with 40% and beverages with 50%.
This situation has caused sales to decrease significantly, in April (-30%) and in the month of May (-50%).
Wineries fear the increase in the Selective Consumption Tax
As announced by Ministry of Economy and Financefor this year the increase in the amount of the ISC for products such as beer, a fact that generates concern in various wineries throughout Peru. Given this, Choy comments that this situation will worsen the income of the wineries in the coming months. ‘Yes, it is affecting beverages, beer mainly, and what we fear is that in the month of July, which will be the second increase in the Selective Consumption Tax, then if with the first we have already had low sales, imagine a price increase in the month of July’, commented Andrés Choy for Latina.
They project that 5,000 wineries in Peru would close in the coming months
Another factor added to the economy is crime, which is why it is estimated that there will be 5,000 wineries that will close in the coming months. “With the costs that currently exist, many of the wineries are already at risk of closing their business, especially the small wineries that are in subsistence that do not have the capacity to buy back, last year due to crime they closed 2,600 wineries. For This year, due to economic issues, we estimate there will be 5,000,” Choy said.
Source: Larepublica
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