Covid Relief Order Update for Wineries

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Written by Mark Hicken Mark Hicken

Category: Latest News Latest News

Published: 27 January 2021 27 January 2021

This article provides a quick update on the status of the main Covid relief orders that have been issued by the BC Government over the last year as they apply to wineries and the hospitality industry. 

Many of these orders have already been extended previously. It seems likely that many may be extended further beyond the current expiration dates listed above. It is also possible that some of these temporary orders may eventually be made permanent.

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2021 BC Liquor & Hospitality Industry Health Order Update

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Written by Mark Hicken Mark Hicken

Category: Latest News Latest News

Published: 06 January 2021 06 January 2021

Unfortunately, the Public Health Orders (PHOs) that have been issued in BC in response to the Covid19 pandemic continue to cause confusion for the general public and for affected industries including the liquor and hospitality industry. The following discussion provides an updated analysis for the BC wine and hospitality industry by reviewing the orders and related guidelines. 

Restaurants/Bars/Lounges (including Tasting Bars)

The governing Public Health Order for restaurants, bars and lounges (including winery tasting bars) is now the Food and Liquor Serving Premises and Retail Establishments Which Sell Liquor Order which was issued on December 30, 2020. This Order largely re-stated a previous order but also prohibited the sale of liquor after 8 pm on New Year's Eve (the latter change came barely 24 hours before the effective time, causing significant financial loss for affected businesses). This PHO previously required and still requires that nightclubs must close. There are various rules for continued operation for all other premises including:

• Customers must be seated and remain seated except to use the washroom or for initial seating. An exception is made for liquor manufacturers so winery tasting rooms can have customers who are standing at the tasting bar.
• Appropriate separation (generally 2m) of customers or customer groups must be made. Alternatively, can use physical barriers.
• Maximum of 6 people per group at a table or counter. No movement between tables.
• Liquor service must end at 10 pm.
• No dancing, singing, etc ...
• Contract tracing info for customers is required.
• Workplace Covid Safety plan required.

There is now a requirement for mandatory masks in all indoor public spaces with some limited exceptions including for the consumption of food and drinks. This requirement was issued under this Ministerial Mask Mandate Order rather than a PHO. As a result, masks are now required for staff and customers unless the customer is seated at a table or counter for the purpose of eating or drinking (i.e. a customer must wear a mask during initial seating or going to the washroom).

In respect of events, a revised Gathering and Events Order was issued on December 24th, 2020. This prohibits a restaurant/bar/lounge from holding any "events" until at least February 5, 2021. This would likely prevent any type of special event outside the restaurant's normal business such as a winemaker's dinner or winery sponsored tasting. I note that this order is confusing and does not adequately define many of the terms used. In addition, much of the guidance related to the order (see Province Wide Restrictions page) is not consistent with the order. The definition of "event" is problematic because it seems to encompass any "gathering" of individuals for "private or public" purposes either "inside or outside". This is a sweeping definition that goes far beyond the normal definition of an event. To make things more confusing, the guidance then lists many types of "gatherings" which are supposedly permissible but which may fall literally within the definition (for example, "going for a walk" with others is supposedly permissible as long as it does not turn into a "group of people meeting outside" - which does not make sense). 

Particularly, I note that in this regard and for the purpose of seating customers, restaurants/bars/lounges are not required to determine whether patrons reside in the same household or bubble. Indeed, the Orders do not prohibit customers from different households from sitting together unless that could somehow be characterized as an "event".

Retail Stores (e.g. On-Site Store, Liquor Stores)

The governing PHO for retail stores including on-site stores in a winery or manufacturer is the Workplace Safety Plans Order which was issued on May 14, 2020. This was supplemented by an additional Workplace Safety Order issued on December 16, 2020. Generally, these orders require the following:

• Workplace Covid Safety plan required.
• Daily health checks required.
• Encouragement of working from home, whenever possible.
• Appropriate capacity planning, protective barriers and customer control measures.

As mentioned above, the requirement for masks is now mandatory in retail stores for both customers and employees under the Ministerial Order. 

Events

The revised Gathering and Events Order (above) prohibits all events of any size until at least February 5, 2021. As noted above, the definition of events is problematic but it likely means that all the types of special events that a winery or manufacturer would normally hold are canceled until at least February 5, 2021. For example, weddings, celebrations, parties, auctions, fundraisers, wine tasting seminars, etc... must all be canceled. The previous 50 person limit for events has been suspended (at least temporarily) and the allowable number reduced to zero (the limit for weddings is 10 people which would eliminate most if not all 'winery weddings').

Court Commentary

There has already been some judicial commentary dealing with the confusion associated with these Orders. In a recent case that analyzed the effect of these Orders and family custody arrangements, Mr. Justice Kent of the BC Supreme Court noted that the Orders were confusing and hard to understand. The Justice stated: 

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BC Wine & Hospitality Industry: Public Health Order Update

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Written by Mark Hicken Mark Hicken

Category: Latest News Latest News

Published: 23 November 2020 23 November 2020

There has been some confusion recently on the content and effects of the recent Public Health Orders (PHOs) that have been issued in response to the Covid19 pandemic. The following discussion attempts to alleviate some of that confusion for the BC wine and hospitality industry by setting out the contents of the actual orders and related guidance and recommendations. 

Restaurants/Bars/Lounges (including Tasting Bars)

The governing Public Health Order for restaurants, bars and lounges (including winery tasting bars) is the Food and Liquor Serving Premises Order which was issued on October 9, 2020. This PHO mandates that nightclubs must close. There are various rules for continued operation for all other premises including:

• Customers must be seated and remain seated except to use the washroom or for initial seating. An exception is made for liquor manufacturers so winery tasting rooms can have customers who are standing at the tasting bar.
• Appropriate separation (generally 2m) of customers or customer groups must be made. Alternatively, can use physical barriers.
• Maximum of 6 people per group at a table or counter. No movement between tables.
• Liquor service must end at 10 pm.
• No dancing, singing, etc ...
• Contract tracing info for customers is required.
• Workplace Covid Safety plan required.

The recent verbal PHO (November 19, 2020) has not significantly changed the rules for restaurants/bars/lounges. There is now a requirement for mandatory masks. See Province-Wide Restrictions page.

• Masks required for staff and customers unless customer is seated at a table or counter (i.e. for initial seating or going to the washroom).

In respect of events, the reissued Gathering and Events Order (see discussion below) prohibits a restaurant/bar/lounge from holding any events until at least January 8, 2021. This would prevent any type of special event outside the restaurant's normal business such as a winemaker's dinner or winery sponsored tasting. I note that for the purpose of seating customers, restaurants/bars/lounges are not required to determine whether patrons reside in the same household or bubble. Indeed, the Order does not prohibit customers from different households from sitting together (although the spirit of the guidance would not encourage this except in certain cases, such as where people live alone or where they are meeting for non-social purposes such as business).

Retail Stores (e.g. On-Site Store, Liquor Stores)

The governing PHO for retail stores including on-site stores in a winery or manufacturer is the Workplace Safety Plans Order which was issued on May 14, 2020. Generally, this requires the following:

• Workplace Covid Safety plan required.
• Appropriate capacity planning, protective barriers and customer control measures.

The recent verbal PHO (November 19, 2020) has not changed the rules for retail stores, other than that the requirement for masks is now mandatory. See Province-Wide Restrictions page. 

• Masks required for staff and customers in all indoor areas.

Events

The recent verbal PHO (November 19, 2020) ordered that all events of any size are prohibited until at least December 7, 2020 (now extended until January 8, 2021). The definition of events is contained in the Gathering and Events Order which was revised and reissued on December 2, 2020 to reflect the verbal order. This Order effectively means that all the types of special events that a winery or manufacturer would hold are canceled until January 8, 2021. For example, weddings, celebrations, parties, auctions, fundraisers, wine tasting seminars, etc... must all be canceled. The previous 50 person limit for events has been suspended (at least temporarily) and the allowable number reduced to zero (the limit for weddings is 10 people which would eliminate most if not all 'winery weddings'). See Province-Wide Restrictions page. 

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SAQ Threatens Canadian Wineries on DTC Shipments

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Written by Mark Hicken Mark Hicken

Category: Latest News Latest News

Published: 30 September 2020 30 September 2020

In the midst of a pandemic which has caused widespread economic pain for the Canadian wine industry, the SAQ (the Quebec liquor authority) has issued an information bulletin which threatens Canadian wineries outside Quebec with enforcement action if they direct ship wine to Quebec customers. The bulletin is located here: Sale and direct delivery of beverage alcohol products to Quebec. Apparently, this bulletin was also sent directly (in the form of a letter) to certain Ontario wineries.

It should be noted that the issues surrounding the interprovincial shipment of alcohol in Canada are complex and were the subject of a relatively recent Supreme Court of Canada decision, R. v. Comeau, which largely upheld restrictive provincial laws. However, the decision also indicated that provincial laws or rules that discriminate as between "out of province" and "in province" producers could be held to be unconstitutional. Quebec has such laws/rules in that it permits Quebec wineries to direct ship within Quebec but does not permit "out of province" wineries to do so. For more detailed information on the laws and rules related to interprovincial DTC shipment, wineries may wish to consult with a lawyer or, for more general information, subscribe to the Alca Winery Compliance Subscription that is available on our sister web-site.

The issuance of the bulletin by the SAQ is a disappointing development as the Canadian wine industry has been working on initiatives to open the country up to the interprovincial trade in wine for years (see Wine Growers Canada and FreeMyGrapes websites). Indeed, the provinces had committed to increase interprovincial access for the alcohol sector in an Action Plan stemming from the 2017 Canadian Free Trade Agreement and had formed a feasibility group to accomplish this. This action flies directly against the spirit of these efforts. At at time when the Canadian economy needs all the help that it can get, it is sad to see a provincial liquor board take an action that will suppress interprovincial economic activity and actively hurt Canadian wine producers in other provinces. Such actions would be unheard of in France where it is, of course, completely legal to ship wine from one part of the country to another. Unfortunately, it appears that the SAQ, and the Quebec government, is taking a narrow short-term view that will ultimately harm Quebec wine consumers.

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