Solutions to Address the Challenges Caused by COVID-19 in the Alcoholic Beverage Sector

The Case of Grupo Aveleda

Abstract

The challenges faced by the alcoholic beverage production sector during the pandemic and multiple lockdowns are well known, largely due to the closure of bars, restaurants, and nightclubs, as well as the sharp decline in tourism. The main objective of this article is to outline some of the reasons behind these difficulties, supported by previous studies, and subsequently propose solutions to mitigate the pandemic’s negative impact on the sector and help companies adopt socially responsible practices while contributing to global economic recovery. The proposed solutions focus primarily on the creation and promotion of online sales platforms, engagement in Corporate Social Responsibility initiatives, production of sustainable and reusable packaging, support for distributors, promotion of alcohol-free beer ranges, and the establishment of strategic partnerships. In summary, these proposals aim to address the need for companies to overcome the challenges caused by COVID-19, while also embracing sustainable development and adopting socially responsible practices. To complement the information gathered and the proposed solutions, the article also includes an interview with Martim Guedes, co-CEO of Grupo Aveleda, one of the leading wine producers in Portugal. The interview was conducted via Zoom in April 2021 and provided first-hand insight into how a company in the sector responded to the pandemic.