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The Canadian Wine Industry

The Canadian wine-making industry, North America Industrial Classification System (NAICS) 31213, comprises establishments that are primarily engaged in manufacturing wine or brandy from grapes or other fruit. Establishments primarily engaged in growing grapes and manufacturing wine, manufacturing wine from purchased grapes and other fruit, blending wines, or distilling brandy, are included.1

Introduction

We do not have an "Introduction" for this page, our apologies.

Significance

We do not have a subject on "Significance", our apologies.

Industry Structure

Table wines made from grapes constitute the largest segment of the market and can be divided into two categories: the low-to-medium-priced wines, or "vin ordinaire" table wines, which make up 80% of sales, and the mid-to-premium-priced branded items, including icewines, where product descriptors, appellations (or geographical indications), and vintages are important to consumers.

According to the latest Statistics Canada data, 31 winery establishments2 produced shipments worth $500.5 million and employed 1,437 people in 1999. Imports3 were close to $900 million, capturing an estimated 66% share of the domestic market (see Figure 1). The major suppliers are France, Italy and the United States (US). Wine exports3 are minimal, ranging between $6.4 million - $10.7 million annually in recent years. Production and exports of grape wine and 'other related products', such as fruit wines, wine coolers and hard lemonade, have grown considerably in importance since 1998, primarily to the US (see Figure 4).

The Canadian wine sector is heavily concentrated in Ontario, British Columbia (BC) and Quebec. About 82% of manufacturing shipments come from Ontario and 18% from BC, while the industry in Quebec is extensively engaged in the bottling of bulk foreign wine products.

In total, there are approximately 170 winery establishments across Canada, many of which are small operations. "Estate" wineries, where grapes are cultivated in vineyards owned by the winery, are very common. "Estate" wineries normally consist of operations employing between 20 and 100 persons, but additional labour is required at grape harvest time. Of total reported domestic sales, "estate" wineries account for approximately 12% of wines sold.

Wine-making is considered to be relatively concentrated as the leading five firms account for close to 90% of total wine production. The remaining establishments are comprised of "estate" and "farm-gate" wineries, where wine-making may only be a part of a larger farming operation. For this reason, the "farm-gate" activity4 is not accounted for in formal Statistics Canada wine industry data (NAICS 31213).

Figure 1: Imports, Exports and Domestic Market Shipments, 1999

Wine imports included in NAICS 31213 comprise wine grapes in addition to the other alcoholic beverages noted above. However, the major imported product is wine made from grapes. Wine exports of $6.4 million are comprised only of wine made from grapes.

Industry sources have indicated that four large wineries represent 94% of the volume sold through liquor boards in BC and about 59 small wineries account for the remainder.

There is no wine production in the Prairie region, but there are two blended-wine bottling facilities in Alberta, each operated by one of the two major Canadian wine enterprises.

According to the industry, two large firms represent close to 75% of the Canadian wine sold through provincial liquor board outlets in Ontario, with most of the remainder supplied by approximately 90 small Ontario wineries.

In Quebec, the wine sector is based primarily on value-added bottling and blending from imported bulk wines. Thirty-five small grower/estate wineries have also recently emerged in this province, producing 100,000 bottles annually.

In the Maritimes, six small enterprises account for 13.5% of wine volume, while the two largest companies in Canada produce the bulk of wine in that region.

The wine industry in Ontario and BC is closely linked to the grape-growing sector and, as such, is directly affected by provincial agricultural policies. In Ontario, the vintners negotiate annually with the grape growers represented by their marketing board to establish grape prices. In BC, the grape market is not regulated and growers and wineries contract privately with each other.

Wineries will normally take about 80% of the annual grape production, with much of the balance going for juice or fresh fruit consumption. Annual grape purchases by wineries in Ontario and BC are estimated at $75 million.

The industry is closely regulated (see 'Regulatory Factors' section below). Wines, like other alcoholic beverages, must be distributed and sold through provincial liquor control board outlets. Some provinces permit wineries to sell their own wines in establishments which they operate. In Quebec, wine sold in grocery stores must be bottled in the province.

Performance

Domestic Market

The domestic market is the most important market for Canadian wines even though there has been some decline in the consumption of alcoholic beverages. Annual wine consumption declined moderately between 1988 and 1999, falling from 9.55 litres to 8.8 litres. Canadian per capita wine consumption is very low compared to other major wine-producing countries such as France or Italy, where per capita consumption is around 60 litres.

Imported wines continue to do well in the domestic market, rising from $400 million in 1992, to an estimated $981 million in 2001 (other products such as fruit wines, wine coolers and cider are also included). See Figure 2. In terms of market share, imports increased from a 58% share of the domestic market in 1992, to approximately a 66% share by 1999. France accounts for one-third of these imports, followed by the US (19.5%), Italy (16.8%), and Chile (11.2%).

The Canadian industry has traditionally been inhibited in its marketing efforts because of a lingering quality problem in the minds of consumers. Canadian wine quality has greatly improved over the years and many Canadian wines have won awards in international competitions. This quality improvement has been supported by plantings of new high quality vinifera grapes such as Chardonnay, Riesling, Merlot, Pinot Noir and Cabernet Sauvignon. Consumer awareness and appreciation of these quality improvements is gradually improving.

Figure 2: Imports of Grape Wine and Other Related Products, 1992 - 2001

Wine imports included in NAICS 31213 comprise wine grapes in addition to the other alcoholic beverages noted above. However, the major imported product is wine made from grapes. Wine exports of $6.4 million are comprised only of wine made from grapes.

The large-scale movement to grow vinifera varieties of grapes marked the beginning of a new competitive era with Canada-US free trade in 1989. This free trade agreement provided the impetus for growers to remove less desirable Labrusca and French Hybrid vines that had previously been the basis of industry production. These varieties were not suitable for producing the higher-quality wines that were experiencing increased demand by Canadian consumers and those in other major global wine markets. Both Ontario and BC have seen considerable re-plantings with more desirable varieties.

The wine industry has gradually adapted to trade liberalization by focussing on premium-quality wines and introducing new products such as icewines, for which Canada holds a competitive advantage. At the same time, wineries introduced new product lines or re-positioned their products with a more upscale image. Many wines blended and/or bottled from domestic or imported product were also improved and adapted to changing consumer tastes.

A key feature in repositioning Canadian wines with domestic consumers has been the development of the Vintners Quality Alliance (VQA). The VQA was launched in Ontario in 1988 and in BC in 1990 as an "Appellation of Origin" system by which consumers could identify high quality wines based on the origin of the grapes.

VQA certification has become an important marketing tool, providing both domestic and foreign consumers with an assurance of quality. From its very beginning in 1988/89, VQA wine sales grew to reach 4.6 million litres in 1999.

Canadian icewines have earned the highest awards at many of the world's most prestigious wine fairs, including Vinexpo and VinItaly. Icewine is made from grapes frozen on the vine. Canada, along with countries such as Austria and Germany, is a leader among the world's few producers of Icewine. Canada is gaining recognition for being one of the world's best and largest producers of this premium product. Icewine sales in 2000 were over $20 million, with exports going primarily to Asia.

Another challenge in the domestic market is competition from U-vint operations. U-vint operations are retail outlets that provide ingredients, equipment and support for customers to make wine for their own consumption.

The successful linkage of wine-making to tourism in Canada's two major grape growing regions in the Okanagan Valley of BC and the Niagara peninsula region of Ontario not only has economic benefits for these regions, but wine tours also build an appreciation of the growing sophistication of Canadian wineries and improving wine quality.

Employment

Employment in the wine industry has fluctuated considerably, from 1,330 employees in 1990, reaching a low of 1,107 in 1994, and then climbing again to a level of 1,437 employees in 1999 (see Figure 3). There is also an element of seasonality to employment in this sector. Extra people are hired during grape harvests, particularly at small estate wineries.

Productivity in 1999, as measured in terms of value-added output per worker, improved by 41% over 1990. This is also evident in that manufacturing shipments increased considerably during this period (see Figure 3), while the number of production workers increased marginally between 1990 and 1999. Another factor to consider is that wine-making has become more automated as new technologies are adopted by Canadian vintners.

Investment

Statistics Canada investment data show that, on average, capital expenditures for the wine industry have increased about 12.4%5 annually. Sector investment has had to increase in order to support the industry's ambitious growth plans. Some large wineries have made acquisitions in other alcoholic products such as fruit wines, ciders and hard lemonade products, which are rising in importance in the lower-priced segment of the domestic market.

Figure 3: Total Shipments of Own Manufacture and Employment, 1990-1999

Export Market

Exports of wine only increased from about 0.3% of domestic production in 1990 to an estimated 1.3% of domestic production in 1999. In dollar terms, exports grew significantly during this period, from $680,499 in 1990 to $6.4 million in 1999, and they rose even further by 2001, reaching $10.7 million. The US and Asia are the major markets. Export growth since 1997, particularly in offshore markets, has been static due to rising global competition and economic difficulties in southeast Asia. However, shipments to the US have increased, taking 43.5% of pure wine exports in 2001, at a value of $4.7 million (see Figure 4).

The replanting efforts on the part of growers to remove less desirable Labrusca and French hybrids in favour of new varieties that supply higher-quality wines is paying off.

Although there has been an increasing trend in grape wine exports, their growth has remained modest. However, other related products such as cider, fruit wines, perry, mead, hard lemonade, etc., showed incredible growth in 1999 and 2000 (from $10.5 million in 1998 to $37.0 million in 1999, $73.6 million in 2000, and $98.1 in 2001 in total). These increases are primarily attributable to exports of fermented beverages (and lesser amounts of cider, perry, sake, ginger beer) to the US, which accounted for up to $70 million of the $98 million in 2001. A favourable Canada-US exchange rate, in addition to declining tariffs, have been important factors in growing this trade. See Figure 4.

In spite of economic difficulties in Southeast Asia, that region is showing excellent potential for icewines. Some of the export success to date can be attributed to the increase in sales of icewines to the Asian market.

Despite its recognition and popularity in European wine competitions, Canada's Icewine was barred from the EU until recently because it falls outside their parameters for residual sugar content. In early 2001, Canadian Icewine was granted a derogation or exemption from the EU's sugar content rule, giving Canadian icewines access to that market. With EU access obtained, the opportunity to increase Canadian Icewine sales is greatly enhanced.

Figure 4: Exports of Grape Wine, and Other Related Products to the US, 1992-2001

There is considerable discussion with the EU in order to obtain improved access into that market for all Canadian wines. Until recently, EU rules on access limited Canada to 100,000 hectolitres of table wines (excluding Icewine). However, the EU is now open to all Canadian wines that meet the same wine-making standards as EU wines. Ontario and BC are mandated to certify both table wines and icewines for EU access.

Trade Performance

We do not have a subject on "Trade Performance", our apologies.

Strengths and Weaknesses

Structural Factors

Climatic conditions in Canada are not conducive to large-scale wine production since grape-growing is confined to a few small geographic regions where the growing season is sufficiently long for grapes to reach maturity. Such climatic influences place limitations on the scale of production operations and the cost-competitiveness of wine production.

Canada has one of the lowest domestic market shares (under 40%) among wine-producing countries. By comparison, other countries such as the US, France, Australia and Italy, each control over 85% of their home markets.

There are only a few wineries with 200 or more employees, which would position them as medium-to-large organizations by international standards. There was a considerable number of consolidations, mergers and acquisitions during the 1990s, which has led to the evolution of two major national wineries with operations in six provinces.

These largest firms have a mix of bottling and blending operations, as well as estate wine businesses, spread across the country. In some cases, these wineries also have diversified holdings in cider, fruit wines, wine coolers, fruit wine coolers and "hard lemonade", or leisure-type products. These products normally have lower alcohol content than grape wines and have proven to be popular sellers in lower-priced market segments in Canada and the US.

Economies of scale are critical in the production of low-priced wines, but are less important in the production of premium-priced products. Canadian smaller-sized operations have a lower productivity level than some of their much larger California counterparts, although packaging and labour costs are thought to be roughly similar. The "cottage" or small "estate" wineries, producing small volumes of top-quality premium wines in Canada and the US, are more likely to be fairly comparable in costs.

Trade-Related Factors

Canada produces a negligible amount of wine by world standards with about 7,500 hectares of vineyards, compared to the EU which has 3.5 million hectares, of which France alone has 2.5 million hectares.

The small area under vine in Canada limits export production capability compared to the world's largest wine producers. Exports are still key in a global marketplace, particularly if the industry continues to lose domestic market share to imports.

The Canadian wine industry now faces more competition from imports than at any other time in its history. There are no longer tariffs on US wine imports as a result of the full implementation of the Canada-US Free Trade Agreement. Tariffs with the US were completely phased out by January 1, 1999, and there have been tariff reductions on EU wines since 1995 as a result of the completion of the last round of WTO negotiations.

EU production and consumption of wine has declined since the mid 1990s, but global wine markets are becoming highly competitive as "New World" producers such as Chile, Argentina, South Africa and Australia are increasing areas under vine, they have developed aggressive marketing policies and are promoting products at highly competitive prices. Australia and the US doubled their exports to Canada during 1995-2000. With the exception of the US, Canadian shipments to "New World" wine-producing countries have been extremely limited as many of these countries have competitive advantages in climate, scale of production, and lower- valued currencies.

Tariff concessions have played some role in the increased volume of export trade to Asia and the US markets by Canadian vintners. There is still only limited access to the EU market, which is tightly regulated. The EU requires that imported wines meet the same production methods as their local wines and imports must comply with restrictive labelling rules in order to gain entry (see 'Export Market' section above).

The recent EU concessions on icewines are expected to lead to annual Icewine exports in the order of $20 million over the next five years, according to the Canadian Vintners Association. Icewine access will help to reduce the $500 million annual trade gap in wines with the EU. However, Icewine is a specialty product and, without further access improvements, a large trade gap between Canada and the EU will remain.

In the past, provincial liquor board listings, distribution and pricing practices have been irritants for countries shipping to Canada. In the mid-1980s, the EU launched a formal complaint regarding provincial liquor board practices. A 1987 GATT Panel upheld this complaint and found the practices to be inconsistent with Canada's international trading obligations.

A bilateral agreement on access was subsequently reached with the EU and has since been extended to other countries. This agreement provided for immediate national treatment of listings and distribution. "National treatment" means providing access for imported products under the same terms as those provided for intraprovincial trade of wine products (or trade within a province).

The agreement also provided for a phasing-out of the difference in price mark-ups for Canadian and foreign wines. However, it continued to provide for restrictions on the sale of wine in Quebec depanneurs to wines bottled or produced in Quebec, and in Ontario for a number of off-site winery stores (operated by a few vintners) to wines produced in the province.

Similarly, under the Canada-US Free Trade Agreement, national treatment was granted to US wines for listings and distribution. This allowed US wines to be treated no less favourably than Canadian wines. Differences in price mark-ups between domestic and US wines were virtually eliminated by 1995.

The Federal/Provincial Agreement on Internal Trade (AIT), which came into effect in 1996, provides for improved distribution of alcoholic beverages interprovincially. Under the AIT, each province must provide "national treatment" for all products imported from other provinces (with some exceptions). For instance, as of December 31, 1999, Ontario began providing full access from other provinces.

Technology-Related Factors

Wine-making may be thought of as a traditional or mature technology. Although the basic process of fermentation remains, new technology in terms of both equipment and processes, is continually being adopted.

Many Canadian vintners have been trained in the leading wine-making educational centres in Europe and California. Canadian innovations in yeast development have translated into a competitive edge for local vintners. New processing and packaging equipment is usually accessible to the industry through its suppliers.

In December 1996, Brock University in Southern Ontario launched the Cool Climate Oenology and Viticulture Institute (CCOVI) in partnership with local industry, federal and provincial governments, and education institutions in the region. Brock's wine focus through CCOVI is to establish the university as one of the few centres in North America to grant degree status to graduates that specialize in studies involving the grape and wine industry. As well, the Institute hopes to make its mark globally in research tied to the cool-climate conditions of the industry in Canada and the US.

The University of British Columbia formed the BC Wine Research Centre in partnership with the Pacific Agri-Food Research Centre and the BC Wine Institute (BCWI) in 1999. The Centre supports wineries and grape growers by undertaking specialized scientific research projects of interest to the industry.

Partnerships are occurring in industry as well, including international alliances. A significant joint venture between an Ontario winery and a renowned French wine producer was announced early in 2000. The partnership should bring some transfer of wine-making skills. This Canadian/French partnership demonstrates that the giant French producer considers a Canadian winery to be a serious producer of high-quality wines. The partnership should also have positive results in terms of overall international recognition of Canadian-made premium wines.

Regulatory Factors

The AIT (under Chapter 10 - Alcoholic Beverages) lays out a framework for non-discriminatory treatment of alcoholic beverages which has resulted in a number of barriers being addressed and efforts to avoid the creation of new barriers. However, internal barriers for which removal would have had international implications, due to national treatment requirements, were not addressed in the AIT process on the instruction of Ministers. Provinces have been encouraged to address outstanding non-conforming measures, with the ultimate goal being for all parties to be able to rely on the general provisions of the Chapter to guide interprovincial trade, thereby providing non-discriminatory access, equivalent to that already provided to in-province and imported products.

While provinces have had to eliminate most preferences they traditionally gave to locally-produced wines over wines from other provinces or imports, in order to comply with trade agreements, they still have considerable regulatory influence. This provincial authority stems from a federal statute, the Importation of Intoxicating Liquors Act. This federal legislation requires that all liquor imported into Canada be brought in through a provincial liquor board (located within each province in Canada - see list at end of document). The provincial and territorial governments are also responsible for regulating and controlling traffic in intoxicating liquor for sale and consumption within their respective jurisdictions.

These provincial boards collect federal and provincial duties and taxes on alcohol products, and then add their own mark-up prior to sale of the product.

The Canadian Food Inspection Agency (CFIA) and the provincial liquor boards work together to ensure that alcoholic beverages, including wines, conform to Canadian standards under the Food and Drugs Act before being approved for sale in Canada (for alcohol content, toxins, etc.). In addition, both domestic and imported alcoholic beverages must comply with compositional labelling, net quantity and standardized container size requirements under the Food and Drugs and Consumer Packaging and Labelling Acts.

The federal excise tax system for alcoholic beverages presently in effect in Canada imposes taxes on wines produced in Canada at the point of shipment to provincial liquor board warehouses or industry-owned stores. The excise tax on imported wines is calculated from the point where wine is imported and received into liquor board 'bonded' warehouses, but does not become due until the wine is shipped to the point of retail sale.

The Canada Customs and Revenue Agency, in conjunction with the Department of Finance, undertook a complete review of the Excise Act. The principal objectives of this exercise were to safeguard the tax revenue generated by alcohol and to provide a fair and modern tax structure that minimizes the impact of government policies on the industry. The new Excise Act 2001 will come into force on July 1, 2003. Streamlined procedures should offer cost benefits to wineries in complying with requirements.

Vintners nationwide are increasingly getting behind the VQA quality standards by which consumers can identify high-quality wines based on the origin of the grapes from which they are produced. VQA wines, made exclusively from Canadian grapes, must be produced according to well-defined standards and approved by a taste panel to determine if they qualify to carry the VQA logo. Canada's VQA regulations delimit the geographic areas where the grapes can be grown and how the wine must be made. They also stipulate which varieties can be used for products that bear the VQA certification mark. The VQA system is comparable to European wine appellation systems such as the Appellation d'Origine Controlée (AOC) in France.

The proclamation of the VQA Act in Ontario in June 2000 turned the voluntary standard-setting system into a mandatory legal one, with VQA Ontario designated as the province's regulatory wine authority. VQA Ontario put in place an appellation control system for quality wine which establishes, defines and sets quality standards that must be met for a wine to carry the VQA medallion. The VQA standards set out rules of origin, manufacture, bottling and labelling for wines made from 100% provincially-grown grapes.

Through the Ontario Wine Content and Labelling Act (which replaced the former Ontario Wine Content Act), Ontario has legislation that sets out minimum content and labelling standards for the manufacture of wine in Ontario. The objective of this new legislation, which came into force on January 1, 2001, was to increase the domestic content in Ontario wines and to provide greater clarity in labelling for consumers.

In BC, under the BC Wine Act, responsibilities for wine standards, including the enforcement of VQA requirements, has been delegated by the province to the BCWI. Winery representatives from Nova Scotia and the newly-emerging industry in Quebec have, in the past, expressed an interest in one day adopting VQA standards, if feasible.

Future Challenges and Opportunities

The Canadian wine industry is emerging as a small, internationally-recognized cool-climate player, garnering an impressive list of awards and praise from many of the world's most influential wine critics. The challenge now is to build on the international commendations the Canadian wine industry has received in order to regain domestic market share and to increase export sales. The extensive replantings of new vinifera varieties and the development of the provincial VQA standards provide a good beginning for regaining domestic market share and building exports.

Ontario, which currently accounts for 80% of wine production, developed a strategic 20-year plan to ensure future industry success. The elements of this plan include a review of land use planning (particularly in the Niagara region), quality improvements such as VQA growth, and wine tourism.

As the wine industry adjusts to exogenous market factors such as lifestyle and demographic changes, it is challenged to address a wide range of issues that contribute to its overall state of competitiveness. These include, for example, the utilization of new technologies and innovations, image-enhancement promotion in domestic and international markets, research on new cool-climate grape varieties, improvements in production efficiency and education of domestic food service and retail consumers about fine Canadian wines.

Competition in the global wine industry is fierce. The world continues to plant grape vines at a record-breaking pace. An emphasis on higher quality, massive plantings has occurred over the past two years, primarily in "New World" wine regions. In the late 1990s, the major "New World" exporting countries of Australia, Chile and the US increased their total international export sales significantly, including into Canada.

Extensive new plantings of classic varietals make the mid- and long-term international markets look very favourable for these three countries, and competition from these as well as from other "New World" wine producers such as South Africa and Argentina, is expected to increase in the Canadian marketplace. These plantings are beginning to raise concerns about global over-production of wines in the next several years, particularly if consumption does not increase.

Various wine studies have been undertaken around the world to determine if there are health benefits from the moderate consumption of wine. Some of these studies have reported very positive results. Most notable is the 'French Paradox', which cites the lower rate of heart disease in France, despite risk factors similar to those in the US. It is believed that these health benefits exist as a result of the French drinking more red wine. The 'French Paradox' garnered worldwide press in the early 1990s and subsequently led to a significant increase in red wine consumption. If such claims continue to gain mainstream acceptance, they could lead to further increases in wine consumption among the general population over time.

Like all food and beverage processors, wineries are assessing how to deal with the emergence of E-commerce. The wine industry will have to determine if it can effectively use this medium to increase efficiencies through business-to-business solutions and the development of web-based marketing strategies.

Associations

Canadian Vintners Association
Suite 200, 440 Laurier Avenue West
Ottawa, Ontario K1R 7X6
Tel: (613) 782-2283
Fax: (613) 782-2239
email: info@canadianvintners.com
Internet site: www.canadianvintners.com

British Columbia Wine Institute (BCWI)
1737 Pandosy Street
Kelowna, British Columbia V1Y 1R2
Tel: (250) 762-9744
Fax: (250) 762-9788
1-800-661-2294
Email: bcwi@bcwi.bc.ca
Internet site: www.winebc.com

Wine Council of Ontario & Vintners Quality Alliance of Canada
110 Hannover Drive
St Catharines, Ontario L2W 1A4
Tel:(905) 684-8070
Fax:(905) 684-2993
Internet site: www.wineroute.com

Vintners Quality Alliance Ontario
Suite 1601, I Yonge Street
Toronto, Ontario M5E 1E5
Tel: (416) 367-2002
Fax: (416) 367-4044

Association des vignerons du Quebec
Internet Site: www.vignerons-du-quebec.com

The Canadian Wine Institute of Atlantic Canada
c/o Vincor (Attention: Charles Bowden)
10 Levesque Street
Scoudouc, New Brunswick E4P 3P3
Tel: (506) 532- 4426
Fax: (506) 532-4445
email: charlie.bowden@vincor.ca

Provincial Liquor Boards

Yukon Liquor Corporation
9031 Quartz Road
Whitehorse, Yukon Y1A 4P9
Tel: (867) 667-5245
Internet site: www.ylc.yk.ca

Northwest Territories Liquor Commission
Suite 201, 31 Capital Drive
Hay River, NWT X0E 1G2
Tel: (867) 874-2100

British Columbia Liquor Distribution Branch
Ministry of Small Business, Tourism and Culture
2625 Rupert Street
Vancouver, British Columbia V5M 3T5
Tel: (604) 252-3000
Fax: (604) 252-3464
Internet Site: www.bcliquorstores.com

Alberta Gaming and Liquor Commission
50 Corriveau Avenue
St. Albert, Alberta T8N 3T5
Tel: (780) 447-8600
Fax: (780) 447-8914
Internet site: www.aglc.gov.ab.ca

Saskatchewan Liquor and Gaming Authority
2500 Victoria Avenue
P.O. Box 5054
Regina, Saskatchewan S4P 3M3
Tel: (306) 787-1737
Internet site: www.slga.gov.sk.ca/

Manitoba Liquor Control Commission
1555 Buffalo Place
Winnipeg, Manitoba R3C 2X1
Tel: (204) 474-5514
email: info@mlcc.mb.ca
Internet site: www.mlcc.mb.ca

Liquor Control Board of Ontario (LCBO)
General Inquiries
55 Lake Shore Boulevard East
Toronto, Ontario M5E 1A4
Tel: (416) 365-5900
email: infoline@lcbo.com
Internet site: www.lcbo.com

Société des alcools du Québec (SAQ)
905, avenue De Lorimier
Montréal, Québec H2K 3V9
Tel: (514) 873-6065
email: info@saq.com
Internet site: www.saq.com

New Brunswick Liquor Corporation (NBLC)
P.O. Box 20787
Fredericton, New Brunswick E3B 5B8
Tel: (506) 452-6510
Internet Site: www.nbliquor.com

Nova Scotia Liquor Corporation (NSLC)
P.O.Box 8720, Station A
Halifax, Nova Scotia B3K 5M4
Tel: (902) 450-5802
Internet Site: www.nsliquor.ns.ca

PEI Liquor Control Commission
3 Garfield Street
P.O. Box 967
Charlottetown, PEI C1A 7M4
Tel: (902) 368-5720
Internet Site: www.peilcc.ca

Newfoundland Liquor Corporation
P.O. Box 8750, Station A
90 Kenmount Road
St. John's, Newfoundland A1B 3R1
Tel: (709) 724-1100
email: nlc@nfld.com
Internet site: www.nfliquor.com/

Federal Goverment Departmental Contact

Gayle Smith
Food Bureau
Agriculture and Agri-Food Canada
930 Carling Avenue
Ottawa, Ontario K1A 0C5
Tel: (613) 759-7536
Fax: (613) 759-7480
email: Smithg@agr.gc.ca

Monica Treidlinger (co-author)
Food Bureau
Agriculture and Agri-Food Canada

Reports

The following analysis reports are available from the Food Bureau, Agriculture and Agri-Food Canada:

Food and Beverage Processing Sector Analysis

  • The Canadian Food and Beverage Processing Sector - An Overview of Opportunities and Challenges at the Turn of the Century
  • Historical Perspective of the Canadian Food and Beverage Processing Sector
  • Analysis of the Structure of the Canadian Agri-Food Industry

Sub-Sector Profiles

  • The Canadian Bottled Water Industry
  • The Canadian Bread and Bakery Industry
  • The Canadian Brewery Industry *
  • The Canadian Cane and Beet Sugar Industry
  • The Canadian Confectionery Industry
  • The Canadian Distillery Industry
  • The Canadian Dairy Processing Industry
  • The Canadian Feed Industry
  • The Canadian Flour and Related Products Industry
  • The Canadian Fruit and Vegetable Canning, Pickling, and Drying Industry
  • The Canadian Pasta Industry *
  • The Canadian Poultry Processing Industry
  • The Canadian Red Meat Processing Industry
  • The Canadian Fish and Seafood Industry *
  • The Canadian Snack Food Industry
  • The Canadian Soft Drink Industry
  • The Canadian Tea and Coffee Industry
  • The Canadian Wine Industry
  • The Canadian Frozen food Industry *

* Titles marked with an asterisk are not complete at time of publication. Published profiles are available on the internet at www.agr.gc.ca.

Regional Profiles

  • Atlantic Provinces
  • Quebec
  • Ontario
  • Manitoba
  • Saskatchewan
  • Alberta
  • British Columbia

Readers can obtain data updates by accessing the electronic version of these reports at www.agr.gc.ca.

We would be pleased to receive your views, and any comments or suggestions that would improve the substance of these reports. For additional information, and/or to provide your comments, please contact:

Food Bureau
Agriculture and Agri-Food Canada
Room 501, Sir John Carling Building, 930 Carling Avenue
Ottawa, Ontario
Canada
K1A 0C5

(613) 759-7556.

Les documents sont disponibles en français.

Footnotes

1 Statistics Canada has reorganized its definition of industry sectors. As a result, the Standard Industrial Classification (SIC) 1141 definition for wine has been converted to NAICS 31213 for all statistical data. Since wines made from grapes are the major component of NAICS 31213, this document is devoted primarily to wine production, but other alcoholic beverages such as brandy, cider, fruit wines, fruit wine coolers, etc., are also considered part of this NAICS. In addition, there are several small cottage wineries (about 50) not included in the Statistics Canada data.

2 Establishments included in NAICS 31213 have sales greater than $30,000 in volume of wine sold, where the establishment must be a manufacturer and the largest portion of value-added must be in manufacturing. These establishments include blenders.

3 Wine imports included in NAICS 31213 comprise wine grapes in addition to the other alcoholic beverages noted above. However, the major imported product is wine made from grapes. Wine exports of $6.4 million are comprised only of wine made from grapes.

4 Statistics Canada has reorganized its definition of industry sectors. As a result, the Standard Industrial Classification (SIC) 1141 definition for wine has been converted to NAICS 31213 for all statistical data. Since wines made from grapes are the major component of NAICS 31213, this document is devoted primarily to wine production, but other alcoholic beverages such as brandy, cider, fruit wines, fruit wine coolers, etc., are also considered part of this NAICS. In addition, there are several small cottage wineries (about 50) not included in the Statistics Canada data.

5 Investment data was sourced from Statistics Canada SIC 1141 from 1988 to 1997.



The Canadian Wine Products Industry
NAICSd 31213 Wine, 1990-2001

Principal Statistics
a
  1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 99/90* 99/92* AAG**
92-99
a Statistics Canada (CANSIM) and/or Annual Survey of Manufactures
b Annual Survey of Manufactures.
c Statistics Canada Capital Expenditures
dNorth American Industrial Classification System
X denotes confidentiality
* Most recent data used when available
** Average Annual Growth
n/a Not available
Establishments 42 43 39 34 30 35 36 32 32 31     -26.2% -20.5% -3.2%
Companies 38 39 35 31 27 32 33 29 29 28     -26.3% -20.0% -3.1%
Employment Total (number of employees)b 1,330 1,257 1,222 1,269 1,107 1,121 1,249 1,308 1,345 1,437     8.0% 17.6% 2.3%
Productionb 727 722 682 713 617 650 694 767 810 986     35.6% 44.6% 5.4%
Administrationb 603 535 540 556 490 471 555 541 535 451     -25.2% -16.5% -2.5%
Total Shipments (millions $) 259.3 263.7 292.1 303.6 303.6 322.4 414.7 416.6 411.9 508.7     96.2% 74.2% 8.2%
Shipments, Own Manufacturing (millions $) 257.8 262.6 290.9 302.5 302.6 322.0 373.5 413.5 409.2 500.5     94.1% 72.1% 8.1%
Value-added, Own Manufacturing (millions $) 133.4 133.5 154.7 156.2 170.1 159.7 203.0 218.6 198.4 255.1     91.2% 64.9% 7.4%
Value-added/worker, Own Manufacturing (millions $) 0.18 0.18 0.23 0.22 0.28 0.25 0.29 0.29 0.24 0.26     41.0% 14.1% 1.9%
Value-added as % of Shipments, Own Manufacturing 51.7 50.8 53.2 51.6 56.2 49.6 54.3 52.9 48.5 51.0     -1.4% -4.1% -0.6%
Domestic Market (millions $) n/a n/a 687.3 714.6 764.9 810.2 937.5 1,031.1 1,178.0 1,357.0       97.4% 10.2%
Domestic Penetration n/a n/a 41.8% 41.3% 38.3% 38.6% 39.2% 38.9% 33.8% 34.2%       -18.3% -2.8%
Investment (millions $)c
Value of Assets, Straight-Line End Yr Net Stock Depreciation X X X X X X X X X            
Capital Construction X X X X X X X X X 2.2          
Capital Machinery and Equipment X X X X X X X X X 12.9          
Repairs & Maintenance Construction X X X X X X X X X X          
Repairs & Maintenance Machinery and Equipment X X X X X X X X X X          

The Canadian Wine Products Industry
NAICSd 31213 Wine, 1990-2001

Trade Statistics
a
  1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 01/92 00/92 92-01
a Statistics Canada (CANSIM) and/or Annual Survey of Manufactures
b Annual Survey of Manufactures.
c Statistics Canada Capital Expenditures
dNorth American Industrial Classification System
X denotes confidentiality
* Most recent data used when available
** Average Annual Growth
n/a Not available
Global
Exports (millions $) n/a n/a 3.5 7.2 9.4 9.5 5.8 12.7 10.5 37.0 73.6 98.1 2,702.9% 2,002.9% 44.8%
Exports as % of Shipments, Own Manufacturing n/a n/a 1.2% 2.4% 3.1% 3.0% 1.6% 3.1% 2.6% 7.4%          
Imports (millions $) n/a n/a 399.9 419.3 471.7 497.7 569.8 630.3 779.3 893.5 931.2 980.6 145.2% 132.9% 11.9%
Imports as % of Domestic Market n/a n/a 58.2% 58.7% 61.7% 61.4% 60.8% 61.1% 66.2% 65.8%          
Balance of Trade (millions $) n/a n/a -396.4 -412.1 -462.3 -488.2 -564.0 -617.6 -768.8 -856.5 -857.6 -882.5 122.6% 116.3% 10.5%
With the US
Exports (millions $) n/a n/a 2.4 6.0 8.1 3.6 2.3 3.5 5.3 3.3 6.7 9.0 275.0% 179.2% 18.0%
Imports (millions $) n/a n/a 53.3 61.7 71.1 72.8 95.1 104.0 127.1 136.2 147.4 142.9 168.1% 176.5% 13.1%
Balance of Trade (millions $) n/a n/a -50.9 -55.7 -63.0 -69.2 -92.8 -100.5 -121.8 -132.9 -140.7 -133.9 163.1% 176.4% 12.9%
Date Modified: 2004-06-02
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