From the Editor
Luis Ayala
The Return of Normalcy
As the world takes its first steps towards re-opening markets and trade, inching closer to pre-pandemic activity levels, we start seeing craft distilleries release products with creative names, such as: “Lockdown Edition,” “Pandemic Vintage,” and “Bottled in Quarantine” (based on the “Bottled In Bond” concept).
While these expressions help producers vent their frustrations and anxiety, they usually do not represent aspirational purchases, as defined and understood by economists, but rather represent a painful past that many are happy to leave behind. People, for the most part, are eager to experience feelings of freedom and abundance, and to be seen enjoying these luxuries.
It reminds me of a verse from the poem, Still I Rise, by Maya Angelou:
Does my sassiness upset you?
Why are you beset with gloom?
’Cause I walk like I’ve got oil wells
Pumping in my living room.
Meanwhile, as consumers’ lives normalize, the shipping industry is under extreme pressure: on one hand it is facing an increase in demand for transportation of goods, while on the other it is being confronted by a shortage of shipping containers and a misallocation of existing containers throughout the world. These problems have resulted in ocean freight costs almost tripling for some routes, a cost that producers and wholesalers have to pass down to consumers.
International tariffs are also being reevaluated, some are likely to be lifted soon, a move that is expected to offset some of the retail price increased exacerbated by the freight nightmare.
As all these gears begin to interact in their newest configuration, let’s stay calm, knowing that everyone is working hard to supply our markets and stores. Until then, walk like you’ve got oil wells pumping in your living rooms!
Cheers!
Luis Ayala,
Editor and Publisher