Crush 2019
Canadian Vineyard and Winery Management Magazine
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 />
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