On Tariffs
Dear Friends,
For almost 30 years, Piazza Discepoli has had the privilege of serving our customers. For the last five years, we have been humbled by your continued support since we took over from Marty and Steve. We have strived to maintain the legacy of being the finest wine shop in Cincinnati.
On April 2nd, the news broke that a 20% tariff would be imposed on all goods imported from the European Union, along with a range of tariffs, mostly 10%, on imports from other countries, effective immediately. We are uncertain if these are final percentages, temporary, permanent, or even the final effective date.
The impact on small businesses, such as Piazza Discepoli, our distributors, and the numerous small winemakers and farmers who produce our imported wines, cheeses, and meats, is potentially devastating.
We are also aware of the impact on our customers. While none of us know the outcome of these trade issues, we do know that small businesses need your support. We understand the uncertainty of the situation, but please know that we offer a tremendous selection of tariff-free wines in our store today.
We also have an outstanding selection of imported and domestic wines to please your palate. Our distributors have inventory in stock, and some have shipments on the water that will arrive tariff-free. We expect out-of-stock situations, but our team is dedicated to finding alternatives that meet our well-established promise to provide the very best at a fair price.
Over the past 72 hours, we have spoken with distributors, lawyers, and members of Congress. They are sorting through what is on the water, what is in inventory in their warehouses, and what their ordering plan will be from different wine-producing regions.
Please understand that this is a significant and very real risk, especially for small, specialty retailers who, like us, specialize in mainly gourmet, imported goods and may not have many other areas and products to help absorb the impact.
We are a small shop with a big reputation for delivering an incredible selection of global wines.
We take great pride in the selection process for our wines and foods. We are thoughtful about the passion and pride the many small artisan producers have for their wine and culinary crafts that find their way to our store and into your homes. Piazza Disceoploi and many of our producers are small, and we worry about the long-term impact on our business.
What does this mean for pricing?
When our importers bring in $100,000 worth of wine, they now pay an additional $10,000 to $20,000 in tariffs to release that shipment. Everybody is affected by these tariffs, and they add cost at every level: our partners abroad, our importers and distributors here, and ultimately, you.
We'll do everything possible to provide the highest quality at the fairest pricing and protect your value. To be transparent, we cannot avoid increasing pricing as a small local business.
Here are a couple of examples to help. This is what that may look like:
- A bottle that used to be $18 may now be closer to $22
- A $30 bottle will be around $37
- A bottle priced at $50 is likely to approach $60
- Imported Cheese at $22.99 per pound will be $25.99 per pound
We are unsure what the impact will be on our winemakers, farmers, and distributors. Some have suggested they may eat some of the increases by tightening their margins to shoulder the burden. Others may not be in a position to do so. However, as an independent wine and food shop competing with large chain stores and online retailers (neither of which offer the expertise we can) and other competitive threats, we can't absorb it all.
The Pony in this Pile?
The good news is everything currently in our store is pre-tariff, and our distributors still have pre-tariff inventory in stock. As a global shop, we offer many exciting domestic wines to try. We have an outstanding staff with credentials (two WSET2s and one WSET3) and some other excellent palates among our team and distributors who will happily help you find your new ponies in this pile.
Looking ahead, suppose you've been thinking about or are planning events in the upcoming months. In that case, we encourage you to stock up for those special occasions, be it summer gatherings or dinner parties, weddings, engagements, or just to stock your cellar. Now is the moment to secure pre-tariff pricing. Stocks will dwindle as the industry rushes to buy what's already landed. We are securing what we realistically can and will have to replace wines priced under the new structure.
Thank you for your continued support and for making Piazza Discepoli The Best Wine Shop in Cincinnati.
With Appreciation,
Jeff and the PD Crew