Small agri-business wine makers, such as Stonehouse Vineyard in North Glengarry, run by Craig and Joanne MacMillan, continue to petition the government to create an equitable market for all 100 per cent Ontario wine.
Currently, if a wine makers do not join Vintners Quality Alliance (VQA), a regulatory system that establishes requirements for VQA wine in Ontario, their wine cannot be sold in restaurants or convenience stores, including LCBO outlets, unless they pay exorbitant charges ranging from 49 to 55 per cent for access to the market.
VQA wines must be made from 100 per cent Ontario grapes and can use local designation for areas such as Niagara or Pelee Island. Wineries producing VQA wine are expected to meet certain requirements, oblige ongoing audits and ensure their product matches specifics mentioned on the label. VQA wines, using mostly warm climate grapes, are the only wine makers permitted to use the word “Ontario” on their product labels. Artisan wineries also use 100 per cent Ontario-grown grapes, but are not allowed to specify that information on their labels.
Ontario Artisan Wineries (OAW) grow cold climate grapes which are hardier for Ontario’s harsh winters and are more disease resistant than warm climate grapes.
According to the MacMillans, growing cold climate grapes for Ontario wine is also climate-smart agriculture (CSA), which focuses on increasing productivity in crops by adapting to climate changes. CSA practices also help to reduce greenhouse gas emissions through improved plant growing management. In the case of vineyards, growers can practise regenerative farming by not tilling soil and can introduce sheep and poultry for weed and pest management, thereby creating sustainable growing practices, improving food security, and reducing environmental impact.
OAW members face many roadblocks. They are small, family wineries in Prince Edward County, Erie North Shore and Eastern Ontario producing less than 2,000 cases of wine each, compared to the larger VQA wine makers, which together, produce three million cases. As it stands, OAW members grow a number of cold climate grapes that are not approved for VQA wines, but even if approved, they cannot afford the costs associated with joining VQA, and more importantly, VQA still gives preferential treatment to warm climate grapes, leading OAW members to question why they would even want to join an organization that marginalizes and devalues their wines.
Despite these artisan wines winning awards and gaining popularity, the LCBO imposes a markup and wine levy resulting in cumulative charges of 49 to 55 per cent to permit local wines to be sold in stores and restaurants. According to the OAW, in comparison, VQA wines are charged only 20 per cent to be sold to restaurants and, in some cases, producers receive rebates of up to 50 per cent to permit their sale in convenience stores. Additionally, even with the removal of American wines from store shelves and the LCBO’s promotion of “The Eh List” of Canadian-made wine and spirits, there are no non-VQA wines on that list.
Most agri-businesses are suffering from labour shortages, adding to the burden of trying to be successful in a limited market.
The OAW wants the government to eliminate the 71.5 per cent markup and wine levy imposed by the LCBO, provide non-VQA wine the same incentives as VQA wines, and allow non-VQA wineries to add “Ontario” to their labels.
Easing restrictions would generate more revenue for the province since artisan wineries would start selling their products in restaurants and convenience stores that are currently avoided due to the high LCBO charges.
Provincial reviews of the current market streams available for all wine producers in Ontario are being completed, however, the tariff war with the U.S. and political change in Canada have caused a pause in any progress.
By permitting access to local markets, there would be more choice for the consumer, increased tourism and agri-business in local communities, and additional sales tax revenue for the government – a win-win for everyone, artisan producers note.
