HALIFAX – Canada's wine sector is valued at over $10 billion annually, and industry leaders assert that a few modifications, such as eliminating domestic trade barriers, could substantially enhance the national economy. A recent report by Deloitte, commissioned by the Wine Growers of Canada, indicates that if Canadians begin purchasing at least 51 percent of their wine from local producers over the next 15 years, the sector's value could surge to approximately $13.7 billion. This growth includes contributions from related industries, such as shipping and tourism, as the wine sector has stalled at a domestic market penetration of about 40 percent for nearly two decades.
Dan Paszkowski, president of the Wine Growers of Canada, emphasized that achieving the 51 percent target will not come from increasing overall wine sales in Canada but rather by displacing imports over time. The report notes that in leading wine-producing countries, homegrown products account for over half of sales. For instance, in France, consumers select domestic bottles about 83 percent of the time.
One significant change the Canadian wine industry advocates for is to allow consumers to buy wine directly from out-of-province wineries for personal use. Paszkowski pointed out that retail stores often lack the capacity to stock every product and prefer large volumes, making it challenging for small- to mid-sized wineries. "We're probably the only retail sector in the country that has to say no to a consumer when they come and visit our winery and say, 'Can you ship this to my home province?'" Paszkowski explained. Currently, legal restrictions prevent wineries from shipping wine directly to consumers' home provinces, stifling the industry's potential growth, especially given that around four million tourists visit Canadian wineries annually.
In the United States, direct-to-consumer wine shipping is permitted in 48 states, contributing to the California wine sector’s valuation of approximately US$67.5 billion by 2024. Carl Sparkes, owner of Nova Scotia's Devonian Coast Wineries, shared his experience of once shipping his Jost Vineyards' Big Friggin' Red to every premier in Canada. He highlighted the constitutional allowance for the free movement of agricultural products across provincial boundaries. "As a principle, any Canadian should be able to order directly," Sparkes stated, comparing the ease of purchasing global products on platforms like Amazon to the challenges of ordering a bottle of wine from a neighboring province.
The federal government has largely relaxed restrictions on interprovincial alcohol trade, although provincial constraints remain in effect. Presently, only British Columbia, Manitoba, and Nova Scotia permit unrestricted direct-to-consumer wine shipments from other provinces. Other provinces have either established one-off agreements or initiated efforts to ease restrictions, particularly following trade tensions with the U.S. For example, Alberta and British Columbia have a pact allowing direct sales on both sides. Ontario recently signed a memorandum of understanding with Nova Scotia regarding this practice. Meanwhile, both New Brunswick and P.E.I. have introduced pending legislation, and Saskatchewan allows direct sales with a permit requirement.
Last year, ten provinces and territories agreed to explore a direct-to-consumer wine system. Paszkowski anticipates an imminent announcement regarding the establishment of a fully-integrated market addressing issues like shipping, compliance, and tax collection. Despite every province producing some wine, the report indicates that the Canadian wine industry is primarily concentrated in four major regions: the Okanagan Valley in British Columbia, the Niagara region in Ontario, Quebec’s Eastern Townships, and the Annapolis Valley in Nova Scotia.
Each 100 percent Canadian wine bottle generates approximately $89.99 for the economy, while imported bottles contribute only $15.73. The positive impacts extend well beyond the 600+ wineries across Canada, bolstering sectors such as culture, tourism, and transportation. Wine growers are also pushing for reform of the federal excise tax structure, which they argue makes foreign wines cheaper than local alternatives. For instance, the excise tax for Canadian wine with higher alcohol content is 74.5 cents per liter, compared to about 39 cents per liter in the U.S. and roughly six cents per liter in France. Paszkowski noted that Canadian wineries in regions like Niagara can bear significantly higher tax burdens than their American counterparts, reducing competitiveness.
In 2022, the Canadian government introduced the $166-million Wine Sector Support Program to assist the industry in adapting to various challenges. This program was renewed in 2024 with an additional $177 million, although it is currently in its last year. The sector is advocating for further renewal, emphasizing the need for long-term investment certainty. "If we’re serious about growing the sector and keeping the investment here at home, we need stable, predictable policy that gives wineries the confidence to invest here," Sparkes concluded. He highlighted that wine production is a long-term endeavor and that current predictability is vital for sustainable growth.
