The Canadian Wine Industry

4798 Words Nov 13th, 2008 20 Pages
The Canadian Wine Industry
Table of Contents
Introduction
Significance
Industry Structure
Performance
Employment
Investment
Export Market
Trade Performance
Strengths and Weaknesses
Trade-Related Factors
Technology-Related Factors
Regulatory Factors
Future Challenges and Opportunities
Associations
Provincial Liquor Boards
Federal Goverment Departmental Contact
Footnotes

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The Canadian wine-making industry, North America Industrial Classification System (NAICS) 31213, comprises establishments that are primarily engaged in manufacturing wine or brandy from grapes or other fruit. Establishments primarily engaged in growing grapes and
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In Quebec, the wine sector is based primarily on value-added bottling and blending from imported bulk wines. Thirty-five small grower/estate wineries have also recently emerged in this province, producing 100,000 bottles annually.

In the Maritimes, six small enterprises account for 13.5% of wine volume, while the two largest companies in Canada produce the bulk of wine in that region.

The wine industry in Ontario and BC is closely linked to the grape-growing sector and, as such, is directly affected by provincial agricultural policies. In Ontario, the vintners negotiate annually with the grape growers represented by their marketing board to establish grape prices. In BC, the grape market is not regulated and growers and wineries contract privately with each other.

Wineries will normally take about 80% of the annual grape production, with much of the balance going for juice or fresh fruit consumption. Annual grape purchases by wineries in Ontario and BC are estimated at $75 million.

The industry is closely regulated (see 'Regulatory Factors ' section below). Wines, like other alcoholic beverages, must be distributed and sold through provincial liquor control board outlets. Some provinces permit wineries to sell their own wines in establishments which they operate. In Quebec, wine sold in grocery stores must be bottled in the province.

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