BC Throne Speech: Expand Free Trade, Regulatory Reform
- Details
- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 09 February 2010 09 February 2010
U.S. States Consider Retail Liquor Privatization
- Details
- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 09 February 2010 09 February 2010
NY Wine in Supermarkets - Less Wine in Australia
- Details
- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 05 February 2010 05 February 2010
U.S. Seeks to Repeal Border Wine Markups
- Details
- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 28 January 2010 28 January 2010
Interesting political moves in the U.S. may end up having a beneficial effect for Canadian wine consumers and, perhaps, a broader effect that is harder to quantify on the Canadian wine industry. This story in the San Jose Mercury News indicates that there is currently a coalition of U.S. wine producing states that are lobbying Canada to eliminate its excessive border charges on Canadians bringing back wine from the U.S. As most wine enthusiasts know, the charges at the border verge on the ridiculous. In BC, anyone exceeding their miserly duty free allowance of 2 bottles generally has to pay an extra 100% tax and markup in order to bring any additional bottles back. Most Canadian wine lovers hate this system, as do U.S. wineries who lose a lot of potential sales due to the markups. The U.S. effort is described in more detail in this press release from New York Senator Charles Schumer who is lobbying on behalf of the NY wine industry.
This effort could have broader implications for the BC (and Ontario) wine industries. Currently, wine purchased directly from BC wineries escapes all BCLDB markup while wine purchased by a BC wine consumer directly from a Washington (or Oregon or California) winery is subject to full markup at the border. The differential treatment creates serious trade agreement problems which should have been addressed years ago. Unfortunately, the economic consequences of bringing BC and Canadian policies into compliance could be far-reaching and, frankly, I am very concerned about the effects on the BC industry. For consumers though, this is likely to be good news ... the large numbers of BC consumers who are sourcing their wine through Alberta (which has sensible border markups) would finally be able to stop doing so.
UPDATE (Feb 17 2010): This issue has now been covered by the trade publication, Wines & Vines: Canada's Wine Duties Hinder Trade. You may also wish to review this related analysis: BC Wine & Trade Agreement Trouble.
Ontario & BC to Remove Cellared in Canada Designation
- Details
- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 21 January 2010 21 January 2010
A story in the St. Catherines Standard by wine industry reporter, Monique Beech, indicates that Ontario will join British Columbia in removing the "Cellared in Canada" (CIC) designation from marketing in retail stores and from the labels of wine bottles. The BC LDB has already changed is signage in retail stores to remove the CIC description and replaced it with the more accurate "Bottled in British Columbia from International and Domestic Wine". Consumer surveys had found that the old CIC labelling was misleading to consumers, many of whom thought they were purchasing 100% Canadian wine when they bought this product.
Update (Jan 27, 2010): This story has now also been covered by Wine Spectator: Canadian Wine May Soon Be More Canadian. An interesting point brought up in this article was that the CEO of Andrew Peller admitted that 60% of his company's revenue comes from CIC wines. Considering that CIC wines are the least expensive segment, that would mean that by volume, probably 70% or more of sales are CIC.