B.C. and Alberta’s wine war has come to an end.
“͞B.C. wines are world-class and should be enjoyed across Canada and around the world,” B.C. Premier David Eby said in a Tuesday press conference announcing that the shift has been agreed upon.
“Today’s agreement ends the temporary ban on direct sales to customers in Alberta, and that’s a win for B.C.͛s grape growers and wineries, as well as a win for Albertans who have excellent taste in wine.”
Eby pointed out that the wine industry has been hit by a variety of issues ranging from climate change to trade barriers and the ensuing strain is something the government is trying to help alleviate.
On the trade front specifically, there will be a period of implementation, likely a few months, though orders can be made online now.
Premier Danielle Smith said one of the key aspects of reaching this agreement was addressing a disparity in taxation and making sure products flowing in either direction are “treated fairly and equally.”
“Everybody knows in each province, there’s a markup charged and each province gets taxes,” Smith said.
“(Direct-to-consumer sales) was a way the markup was not collected. We wanted fair treatment, we wanted to make sure there was fair treatment.”
How this will be regulated remains to be seen. Smith said they’ve created a “virtual warehouse” of sorts that will ensure that fees in each province are collected. Specifics on how that will work weren’t offered and for the time being, it will be on wineries to assess what’s owed, collect and remit.
The deal will also see that 16 Alberta wineries are also able to sell their products in B.C.
B.C. has more than 350 wineries and these sales and the newly implemented regulations are something Eby said the province intends to help them navigate.
“The producers in B.C. are clear,” Eby said. “They want to ensure they’re onside with Alberta rules, any markup in Alberta and will fully co-operate.”
Direct-to-consumer sales allow wine clubs and other customers a greater choice and access to B.C. wines that may not be otherwise readily available in their region. Tourists from Alberta often place orders after visiting B.C. wineries, giving visitors the opportunity to enjoy B.C. products after they’ve returned home.
The practice had been ongoing for years but in January, Alberta began blocking imports of B.C. wine, claiming that 106 wineries were guilty of bypassing liquor agencies by using direct-to-consumer shipping.
It was a financial blow to an industry already struggling.
Eby said he anticipates there will be ups and downs in trade in the two provinces but as long as they stay focused they will “find common ground” and do the work needed.
Of the approximately 350 grape wineries in B.C., the greatest concentration is in the Okanagan-Similkameen region.
The province said the B.C. wine industry generates approximately $3.75 billion annually, contributes more than $440 million in federal and provincial tax revenues, and employs more than 14,000
full-time workers.
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