Terralux Winery along the West Kelowna Wine Trail has sat unfinished for more than two years and is now officially in foreclosure.
It’s one of three wineries currently in foreclosure across the Okanagan, including one in Cawston and a vineyard in Okanagan Falls.
The filings follow several difficult years for British Columbia’s wine industry.
“It’s been tough ever since COVID, like most businesses,” said Jeff Guignard, president and CEO of Wine Growers BC. “But on top of COVID, we had forest fires and then a generational cold snap that destroyed about 90 per cent of the grapes in the Okanagan. We’re still replanting about a third of it.”
In 2024 alone, at least a quarter of Okanagan wineries were listed for sale. Last year, roughly 20 were publicly on the market, a sign of mounting financial pressure in the region.
“It’s always heartbreaking when one of these wineries doesn’t make it,” Guignard said. “But this happens every year — a few more open, a few more close. Certainly after a few tough seasons, you have people looking at the value of their land and thinking, ‘Maybe I want to do something different.’”
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Ron Kubek, owner of Lightning Rock Winery, believes the strain on the industry also reflects provincial policy decisions.
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“The B.C. government says they’re going to help you, that you can bring in fruit from the U.S. and then the BCLDB says they’re going to tax you,” Kubek said. “They’re not doing anything.”
In response Minister of Agriculture Lana Popham said, “From the outset, there were very clear guidelines communicated to the wine industry about maximum production and program rules, and it was intended to help the industry keep the lights on during a very serious agricultural emergency. Our government has helped the wine sector through challenging times with several different supports, and we understand the pressures they are facing. The Liquor Distribution Branch will continue to work closely with wineries and Wine Growers BC.”
While it may be considered an oversaturated market, the Okanagan wine industry remains one of B.C.’s strongest tourism draws.
“B.C.’s wine industry is an economic engine and a massive tourism driver for this province,” he said. “We should be doubling down on investing in tourism, driving folks from Alberta, the rest of Canada and the U.S. to build this region. We’ve been talking to government about that.”
Guignard says while the number of wineries for sale and in foreclosure may raise eyebrows, it’s not time to panic, but rather a moment to watch how the industry adapts and evolves.
People who thought they had generational money.
Would love to see more wineries making low or no alcohol products. I’m hoping as people become more health conscious that will be the case. I would love to buy a Canadian low alcohol wine.
No business is immune to foreclosure.. it’s part of business ventures.. they all have a shelf life, that’s the risk you take. But it’s heartbreaking to see anyone’s hard work fail for what ever the reason is.
Really unfortunate, but apparently per David Eby it’s every probince for itself. Just returned from U.S. Ski vacation – drank mostly Italian reds and U.S. beer.
Like micro brews, there is only so much average over priced product that can be consumed.
Just wait until Eby gives the land away to the Okanagan Indian band, it’s all unceeded territory after all.
These vineyards were once thriving apple orchards . Now no more. Destroyed for wine making
Now that all the fruit trees were uprooted..I guess food is not important to Canadians..they prefer hockey and beer.
grow hemp
Grow pot then?
It’s not the economy. The wine craze is fading globally. I just watched a video about California and the Napa Valley having the same problem. There’s just way too many wineries in BC. There’s apparently 200 wineries in the Okanagan Valley. I predict that number will fall closer to 50 over the next 20 years or so.
After the destruction of ohh so many orchards for Wine , This is great news to me .
Need to get rid of Provincial trade barriers and the lcb is a huge barrier. But the ndp has no guts to do anything 😕
Everything is always for sale in BC after a few years of the NDP. BC was a total dump in the 90s and we’ll on the way to going straight back to that.
Remember when we grew apples. Grow apples.
Who cares. Alcohol kills 3 million people a year and destroys millions of families.Weed 0
I understand some of the problems the winery are having. Your product would sell in BC if the liquor board would have a better selling price on your product. Why should we pay double the price when we can purchase a wine from South America for much less and just as good if not better?
Sadly maybe there is just too many wineries
Blame it on the NDP government and Eby. All businesses are closing. Not just wineries and fruits. Small manufacturing is closing. Small industries cant keep up.
I work in the rental business, we follow the trends. Can tell you right now that folks are suffering and shifting. Many are moving on out of the province. It is simply getting too costly and now with the base tax increase, we are about to get thoroughly screwed.
Wouldn’t have this problem with peaches and apples and all of the other fruit trees you cut down and burned just to take rotten grapes and strain them through used underwear and call it wine. I hope they all fail for destroying our fruit belt.
Totally overpriced wine. Blame the gov’t. Over taxing a bit of pleasure. Go to Spain and see what lovely wine you get for $5 and under.
Expensive and very average quality wine far to many wineries with their greedy sampling policies that used to be free.
Far better Australian and european wines at $15-$20 a bottle why get hosed at $30-$40 a bottle in the Okanagan.