Friday, October 17, 2008

Beverage Alcohol - Canada's Patchwork Quilt

I received an invitation recently which made me curious about the state of Canadian wine retailing outside of my home province of Ontario. In a very few minutes I discovered that Alberta supermarkets sell International wines and that in British Columbia, where I toured Cold Beer and Wine Stores fifteen years ago while in the Ontario industry, there is a much expanded distribution system that now includes more than twenty VQA store licenses. I also came across a site operated by a group called the "Ontario Wine Producers". This winery organization makes a strong case for wineries participating in more than one industry association, comparing gains made in BC, which has two strong groups, to absent or weaker progress in Ontario, where the Wine Council of Ontario (WCO) predominates, and is described as threatening "ruination" should a second voice gain volume. In supporting its own argument for an additional voice, the OWP quote an impressive statistic from the BC marketplace. Annual Provincial Liquor Board sales of BC VQA wines are 18.4% by dollar value. The Ontario number is a disappointing 3.8%. The OWP argues that the variance is the result of strong industry voices in BC versus a single voice in Ontario, and one they suggest takes its cue from the best interest of the largest vintners in the association. It's a difference of opinion worth watching.

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