Winecast 57: Patrick Mata of Ole & Obrigado and imported wine during the pandemic

Patrick Mata:  U.S. companies are paying the wine tariff – how does that punish the European Union for airplane subsidies?

Want to make sense of the European wine tariffs, which seem to make no sense at all? Then listen to Patrick Mata, whose Ole & Obrigado is one of the leading Spanish wine importers to the U.S.

“I thought we might go out of business,” says Mata, whose company specializes in importing quality, $15 or less wine from Spain and Portugal. “Our margin is 30 percent on a bottle of wine, and the tariff is 25 percent. How were we going to stay in business?”

The good news is that Ole & Obrigado did, despite the tariff and the pandemic (which clobbered its restaurant business). Sales fell only 20 percent in 2020, which Mata considered a victory of immense proportions.

Mata, a long-time friend of the blog, was open and honest about how the tariff and the pandemic have hurt the wine business. Among the topics we talked about:

• Why raising prices to cover the tariff doesn’t work, and why it especially doesn’t work for the $15 wines that Ole specializes in.

• How to give back during a crisis, and why there should be more to the wine business than just making money.

• What Americans are drinking during the pandemic, and why it’s a victory for Big Wine at the expense of small producers — another unintended consequence of the tariff.

Click here to download or stream the podcast, which is about 15 minutes long and takes up 9 megabytes. Quality is mostly excellent – Zoom didn’t act up this time.