Premiers David Eby of B.C. and Danielle Smith of Alberta have signed a memorandum of understanding aimed at cooling a wine war that has been brewing between the two provinces since the beginning of this year.
In January, Alberta’s liquor wholesaler told B.C. winemakers it would stop selling their products in retail stores.
The move was made because the agency which regulates the sale of wine in Alberta believed wineries in B.C. were allowing consumers in Alberta to order wine directly, rather than buying it in stores.
According to a release from the B.C. government, the two provinces have now agreed to once again allow B.C. wineries to ship directly to Alberta, “reopening a vital sales and tourism channel.”
The move to stop the direct-to-consumer sales came at a time when B.C. wineries were already struggling with catastrophic weather including record-breaking heat, destructive cold snaps and out-of-control wildfires leading to back-to-back years of losses in the southern Interior, with up to 99 per cent of crops being wiped out.
In letters shared to winemakers, and viewed by The Canadian Press in January, the Alberta Gaming, Liquor and Cannabis Commission said that there was “tangible evidence” of wine being shipped direct-to-consumer across provincial borders.
The letters told winemakers that any further shipments of wine would not be accepted until the wineries agreed to stop direct-to-consumer sales, in a bid to “maintain the integrity of Alberta’s liquor model and to protect the interests of Alberta retailers and liquor agents.”
Tony Stewart of Quails’ Gate Winery in West Kelowna told CBC News the loss of direct-from-Alberta buyers represented a $100,000 a month loss to their sales, which had been built up over decades.
He said at the time that his business was being “strong-armed.”
A wine war is sloshing over the B.C.-Alberta border. It has to do with inter-provincial trade restrictions and, as Brady Strachan reports, it’s caught wine producers off guard.
350 B.C. grape wineries
The deal announced Tuesday from premier’s meetings in Halifax should give Quails’ Gate and other B.C. wineries a path back to direct-to-consumer sales in Alberta.
“Today’s agreement ends the temporary ban on direct sales to customers in Alberta, and that’s a win for B.C.’s grape growers and wineries, as well as a win for Albertans who have excellent taste in wine,” Premier David Eby said in a written statement and in prepared remarks at a news conference from Halifax.
Speaking at the conference, Smith highlighted the “strong ties” between B.C. and Alberta, adding that her government has “long been an advocate for reducing red tape and reducing barriers to inter-provincial trade.”
“There are a lot of Albertans who love B.C. wine, so we were hearing that they wanted to have a solution. And we also heard directly from the vineyards, who I think are really struggling,” said Smith. “Where there’s a will, there’s a way.”
She said she anticipates the province setting up a “virtual warehouse” to collect fees from direct-to-customer wine sales within a few months.
Until then, the premier said Alberta will use a paper-based system to track sales. She said she trusts B.C. wineries to collect and remit what they owe.
The prepared comments ended with Eby presenting a bottle of B.C. wine to Smith.
The B.C. government said there are approximately 350 grape wineries in B.C., with the greatest concentration of them in the Okanagan-Similkameen region.
According to estimates from Wine Growers B.C., direct-to-consumer (DTC) sales account for less than three per cent of total wine sales, primarily consisting of high-end bottles that are not available through the Alberta Gaming, Liquor, and Cannabis Commission.
But the organization says DTC shipping to Alberta residents has been a critical component to the growth and success of the B.C. wine industry.
John Skinner, proprietor of the Penticton-based Painted Rock Winery, says he agrees.
“The little guys need these direct-to-consumer sales to keep us in business,” he told CBC News.
Skinner says it’s essential to provide his home-grown wines to Albertans at the same price that British Columbians pay.
“The Albertans are very, very important,” he added. “It’s a large community of people and we want to be able to serve them and provide them our product.”
Source Agencies
