FedEx Restricts InterProv Shipping Amidst Rumours of InterProv Announcement
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- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 29 August 2014 29 August 2014
FedEx notified BC wineries earlier this week that it has stopped accepting interprovincial direct to consumer shipments of wine other than to destinations within BC or Manitoba. It is unclear whether this development is related to earlier reports of FedEx being charged in Newfoundland for shipping wine into that province (see: FedEx Charged in Nfld for Shipping Wine). In addition, media reports today have indicated that a deal may be close that would allow the interprovincial shipment of wine between Ontario and British Columbia: see Wynne, Clark Announce Ontario BC Wine Deal is Near. More details will be posted as they become available.
Ontario Report Calls for End to Liquor Monopoly
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- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 20 August 2014 20 August 2014
A wide ranging report from Ontario's CD Howe Institute is calling for an end to Ontario's monopoly based liquor distribution system. The report indicates that Ontario's current system does not serve consumer interests and actually prevents the provincial government from maximizing its liquor revenues. The link to the report is here (PDF): Uncorking a Strange Brew. The report has also garnered substantial media attention including these articles: Liquor monopoly keeping revenue from Ontario and Time to end retail alcohol monopolies. The provincial liquor monopolies are also preventing the free trade of wine and other alcohol between provinces by creating barriers to inter-provincial trade.
CETA Not Likely to Affect BC Wine Industry
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- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 18 August 2014 18 August 2014
Some recent media reports have speculated, based on leaked text, that the trade agreement between Canada and the EU (the Comprehensive Economic & Trade Agreement, more commonly referred to as CETA) may affect or restrict the BC wine industry (see: Canada's Wine Industry May Face Restrictions). It is not possible to comment with certainty until such time as the official text of the agreement is made public. However, based on my reading of the leaked text, it is unlikely that CETA will have any significant effect upon the BC wine industry. The media reports focused on the fact that CETA may limit the number of private outlets that sell wine. In respect of BC, the supposed limit is set at 60 of such stores. However, this restriction only applies to stores that sell exclusively Canadian wine (in BC, these are the VQA stores and a smaller number of tourist wine stores). The limit does not apply to the vast majority of BC's private liquor stores which sell a range of products from various countries. The limit of 60 is, in fact, considerably greater than the number of such stores that are currently operating (which is about 20). As such, CETA preserves the existing exclusive distribution channels for domestic wine in these private retail stores and it also preserves the ability of wineries to sell from their own tasting rooms (direct delivery). As a result, there appear to be very few effects on the BC wine industry. CETA may, in fact, provide benefits to BC wineries that use European products in their manufacturing processes as any Canadian tariffs on those products will be removed. Some media outlets correctly reported that there will likely be little effect: see Leaked Document of Canada EU Trade Deal. And see this previous article on the trade agreement.
Quebec Rejects Direct Wine Shipment
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- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 24 July 2014 24 July 2014
The Quebec government issued a new regulation today that governs the interprovincial transport of alcohol to Quebec consumers. The regulation permits the importation of up to 9 litres of wine per trip but restricts this to 'in person' transport of the wine (i.e. the regulation does not allow direct to consumer shipment of the wine). As a result, Quebec consumers will remain unable to import wine from other provinces unless they are actually travelling to another province to fetch the wine. To date, only two provinces have embraced the spirit of a free trade in Canadian wine: BC and Manitoba. Please check this page for updates: Shipping Law Update.
Federal Canadian Shipping Law Amended for Beer, Spirits
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- Written by Mark Hicken Mark Hicken
- Category: Latest News Latest News
- Published: 24 June 2014 24 June 2014
The federal Canadian law that restricts the interprovincial shipment of alcohol has been further amended, effective last Thursday. The Importation of Intoxicating Liquors Act (the "IILA") previously contained an absolute prohibition on the interprovincial direct to consumer shipment of all alcohol products. The IILA was amended in 2012 by Bill C-311 which created an exemption for the shipment of wine between provinces for personal use, subject to provincial laws. The IILA has now been amended again so as to extend the exemption for wine to also include beer and spirits. The new amendment was contained in the omnibus federal budget Bill which received royal assent on June 19th. The provisions related to IILA can be viewed here: IILA Amendment. Of course, it remains to be seen how effective these changes will be as the provinces have, for the most part, created numerous restrictions to try to prevent Canadians from ordering alcohol from other provinces: see Shipping Law Update here.