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Canadian Vineyard and Winery Management Magazine

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In the original NAFTA negotiation<br />

and agreement, in exchange for<br />

dropping tariffs and opening the<br />

Canadian market to U.S. wines, B.C.-<br />

only licences were grandfathered<br />

in to recognize the importance of<br />

supporting local B.C. wine. The<br />

British Columbia Wine Institute<br />

(BCWI) oversees the operation of,<br />

as a cooperative for all B.C. grape<br />

wineries, 21 similar licences allowing<br />

for all certified 100 per cent B.C.<br />

grape wines to be sampled and sold<br />

off site.<br />

The Washington State Liquor and<br />

Cannabis Board allows Washington<br />

wineries two additional locations<br />

off site for sampling and selling<br />

wine of their own production. B.C.’s<br />

provincial government has yet to<br />

issue individual B.C. winery offsite<br />

licences, which is where the<br />

BCWI ones come in. In April 2014,<br />

the B.C. government allowed the<br />

BCWI the option to move these<br />

licences to grocery store shelves<br />

to accommodate the growth of<br />

B.C. wineries and give them better<br />

access to consumers. To date, 18<br />

have done so, with three remaining<br />

independent, as per the BCWI.<br />

The recent USMCA ruling continues<br />

to recognize the provenance of<br />

grandfathered B.C.-only co-op<br />

industry licences. Miles Prodan,<br />

president and CEO of the BCWI,<br />

mentions that the B.C. government<br />

also allowed other liquor store<br />

licences to move into grocery,<br />

including import wine, spirits,<br />

etc.; though for social and health<br />

responsibilities, these were<br />

mandated to be store-within-store<br />

format (with access control, separate<br />

check-out, etc.). To date, no private<br />

liquor store or grocery has taken<br />

advantage of that opportunity.<br />

Under the new USMCA, B.C. will be required to<br />

eliminate its rule which allows only B.C. wines<br />

on grocery shelves.<br />

similar number of grocery stores<br />

on-shelf, and note that, outside of our<br />

BCWI wine stores, B.C. wine already<br />

competes with import wines in more<br />

than 1,300 liquor retail outlets across<br />

the province where we enjoy great<br />

buy local support,” says Prodan.<br />

There has been tremendous growth<br />

of U.S. wine sales in Canada under<br />

the Canada United States Federal<br />

Trade Agreement (CUSFTA) and<br />

NAFTA, and the U.S. wine sales value<br />

to Canada has grown by $485 million<br />

since 1988. The BCWI mentions that<br />

U.S. wine sales in Canada have grown<br />

by an average of 13 per cent every<br />

year for the past 28 years, resulting<br />

in more than doubling its wine sale<br />

market shares to 14.2 per cent. By<br />

comparison, Canadian premium<br />

bottled wine sales in the U.S. market<br />

have grown to $8.4 million and<br />

represents a negligible share of total<br />

wine sales in the United States.<br />

Canadian wine production volume<br />

is one-sixteenth the size of the U.S.<br />

industry. The province of B.C. said<br />

it plans to work with the federal<br />

government to resolve this issue<br />

in a manner that best protects the<br />

province’s wine industry.<br />

“B.C. worked closely with the<br />

federal government and agreed to<br />

amend the measures relating to<br />

wine in grocery stores. This policy<br />

has been controversial for some<br />

time,” said Premier John Horgan<br />

and Bruce Ralston, Minister of<br />

Jobs, Trade and Technology, in a<br />

statement on October 18, 2018. “We<br />

knew this was a problem that we<br />

were going to have to fix. We will<br />

continue to work with the Canadian<br />

government to resolve it in a<br />

manner that best protects our wine<br />

industry.” o<br />

We stock all supplies, ingredients and equipment<br />

needed to make or test Wine, Beer, Cider and Spirits.<br />

Serving the professionals and amateurs alike.<br />

WE SHIP ALL ACROSS CANADA.<br />

“The BCWI has no objection to<br />

import wines having access to a<br />

15

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