Why are European wines often cheaper than Canadian ones? History — and regulation – MASHAHER

Canadian wine lovers looking for an affordable bottle of vino are probably more likely to stroll the European aisles than those with local varieties.

You can blame it, in part, on centuries of winemaking that have created a massive industry in countries like France, Italy and Spain. 

“The amount of wine that those countries are able to produce is completely different than what we’re able to do in Canada,” said Lauren Skinner Buksevics, director of sales and marketing for Painted Rock Winery in British Columbia.

There are a number of factors that go into the tipple’s sticker price, from the cost of land needed to grow grapes, to manufacturing and labour costs and the fees charged by provincial liquor control boards.

For winemakers like Skinner Buksevics, those factors make it harder to compete with established European brands, where land is plentiful and wineries are well established.

That means a comparable wine from B.C. or Ontario could have a higher sticker price at the local liquor store.

Toronto sommelier Beverly Crandon says consumers often don’t spend time thinking about what makes local varieties more costly — and that the industry still has negative perceptions to overcome.

“People have a notion that Canadian wines are not good and … are not to par,” said Crandon, who is the founder of Spice, Food and Wine Group. 

“Forty-five years ago, this might have been true when we were starting out … but the wines you would get then are nowhere near the wines you have today.”

WATCH | Canadian wine producers faced a similar issue in the 1980s: 

Is Canadian wine too pricey for consumers?

In June 1984, The National looks at how the price of Canadian wine was affecting its domestic sale potential.

Production costs in Canada higher

Vineyards in Europe go back hundreds of years — with land and facilities that have been passed down through generations — and generally have lower barriers to entry.

Meanwhile, winemaking in Canada is a new field, says Gurvinder Bhatia, editor-in-chief of Quench Magazine.

“The British Columbia wine industry is relatively young, and in the modern sense, it’s really only about 30 years old,” he told Cost of Living.

“So people who have entered the industry in a relatively short period of time, their costs are significantly higher.”

Those costs can include equipment for producing and storing wine, infrastructure and, crucially, the land to grow grapes.

“We really don’t have that much land that is appropriate for grape growing,” said Skinner Buksevics.

“In the Okanagan Valley, last I checked, vineyards were selling for $400,000 an acre.”

Interprovincial regulation

Provincial regulation of alcohol also plays a part in wine pricing. 

“We have 10 provinces that all operate completely, utterly independently from each other,” said Bhatia. That makes it difficult to develop a countrywide wine industry, he said.

Meanwhile, wine producers face interprovincial fees on their products. 

In Ontario, wine producers selling through Liquor Control Board of Ontario retail locations set their own prices, according to a spokesperson for the provincial finance ministry. That price includes “import duties, freight, levies, a standard markup which varies by product type, HST and container deposit.”

British Columbia’s Liquor Distribution Branch operates similarly. In a statement, it said markups on wine are applied according to a “graduated schedule,” regardless of the province in which the wine is produced.

In March, the federal government announced increases to excise taxes on wine would be capped at two per cent until 2026. 

Skinner Buksevics says while large-scale producers may be able to absorb those added costs when selling thousands of cases, small-scale Canadian producers can struggle.

WATCH | Sask. government now allows homemade wine, beer at weddings: 

Getting married and want to serve homemade beer or wine? Now you can

The Saskatchewan government has changed its liquor regulations to allow people to serve homemade beer and wine for free at family events, such as weddings or reunions, with a special occasion permit. This applies to alcohol made at home or at a licensed U-Brew/U-Vin facility.

Selling directly to consumers — bypassing provincial liquor regulators — can also be a challenge, she said. 

Alberta’s alcohol sales regulator told B.C. wine producers earlier this year they would not be able to sell in provincial stores if those wineries are also selling products directly to consumers. Without liquor board approval, Skinner Buksevics says, those wineries can’t sell to restaurants. 

“We have such a legacy of prohibition in this country. It’s infiltrated so much of our bureaucracy, and our view of the wine industry and of the alcohol industry in general,” she said.

In a January statement, Alberta Gaming, Liquor and Cannabis told CBC the move was to protect Albertans.

“Suppliers from other provinces that offer direct-to-consumer shipping are in contravention of provincial legislation, are bypassing Alberta’s private liquor retailers and liquor agencies and are impacting the dollars that go to the general revenue fund,” wrote spokesperson Karin Campbell.

Finding a good, local vintage

Bhatia says even though shoppers will find a greater variety of European blends under $20, there are still options from local producers around the same price point.

Sommelier Crandon says Ontario wines often have a “really interesting expression of cool-climate grapes.”

“We leave our thumbprint in the glass, and it’s very unique.”

While they tend to be on the pricier side, Crandon suggests looking for single-vineyard vintages — wines from a small crop inside a larger appellation.

“That winemaker obviously spent some time focusing on sourcing the grapes,” she said. “They felt the grapes in this area were that good, that they can be their own wine bottle.”

And if you want to go premium, Skinner Buksevics says higher-priced bottles often compete well against their international rivals.

“Canadians can feel comfortable when they learn about the wines, and they learn about the producers that are doing great things,” she said. “They’re not paying a premium just because it’s Canadian.”

“If you’re just doing a blind tasting of $40 syrahs,” she said, referring to a grape variety primarily used for red wine, “I think B.C. syrahs would do an exceptional job at that tasting.”