The wine industry has seen it’s share of troubles in recent years, and tariffs are just the latest. Before you blame the Americans, Canadian provinces and territories have been applying massive tariffs on wine, beer and spirits for decades. Read More
Canadian provinces and territories have been applying massive tariffs on wine, beer and spirits for decades
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Canadian provinces and territories have been applying massive tariffs on wine, beer and spirits for decades
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The wine industry has seen it’s share of troubles in recent years, and tariffs are just the latest. Before you blame the Americans, Canadian provinces and territories have been applying massive tariffs on wine, beer and spirits for decades.
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Some refer to the tariffs as markups, while the government prefers the ad valorem system. In the end, it is a tax and a hefty one. The ad valorem is particularly nasty because it is imposed on the landed cost of a bottle of wine: From growing grapes, making wine, running a winery, shipping, insuring and the producer’s profit if anything is left over. The ad-valorem tax profits from any expense, normal or abnormal, added along the way. It lives in the background in a place never seen by consumers until they encounter the price on the shelf.
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Wine prices go up for many reasons. One of my favourites is the French saying that if it’s a bad year, the price must go up, and if it is a great year, the price must go up. Throw in inflation, a wildfire, a pandemic or a maniacal, tariff-obsessed U.S. president and it all plays into the one-stop ad valorem haul placed on top of everything. Without doing anything, the government increases its take.
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West Coast Table
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If that’s not enough, the gouge continues when you are dinged another 10 per cent provincial liquor tax and 5 per cent GST on the ad valorem tax. If you buy the exact wine in a restaurant, you can double or triple that price, and add the liquor tax and the GST to the wine list markup to further fatten the government’s take.
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We have been through all this for decades, so why bring it up again? The federal government and provincial premiers have suggested that free trade should start at home, as in free trade between provinces. It is one thing to facilitate the movement of tradespeople, truck drivers, health care workers, doctors and lawyers to work across the country, but given the power and income of provincial liquor monopolies, I can’t see any of them giving up their control and taxes.
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Canadian wineries are all in on provincial-free trade, but when you see the recent agreement between B.C. and Alberta, which set a $4 a litre flat tax, morph into a new additional ad valorem tax on premium-priced wine, you start to understand the complexities of free trade. It’s not so free.
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Support for local wine remains substantial, but crushing price increases are testing the limits of its many fans. Banning U.S. products — the country’s largest import category — will create some elbow room on retail shelves for other wines, but it is not a get-out-of-jail-free card for Canadian producers. Price matters.
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In other news, the retail launch of replacement wines made with foreign grapes, a.k.a. “Crafted in B.C.,” to deal with catastrophic vineyard losses in 2023 (50 per cent) and 2024 (95 per cent) is underway across the province.
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Although the labelling is different from winery to winery, if you inspect the bottles closely, either on the front or back, you will see the source of the grapes, the majority of which were transformed into wine at a winery in B.C. Look for our first review in our Weekend Wine Picks.
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Weekend Wine Picks
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Orofino Few and Far Between Washington Series Cinsault Rosé 2024, Made in Canada from Washington Grapes
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$25.00 I 89/100
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UPC: 696852126700
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The regular edition of Orofino Rosé is tough to follow, but this replacement wine from Washington is a winner. The 100 per cent cinsault grown in the Naches Heights AVA, a cooler section of the Columbia Valley, is made at Orofino. It transports me to the south of France, maybe not Provence, but definitely to the growing collection of high-end Languedoc pinks led by Gerard Bertrand. The vineyard is farmed salmon safe, organic or biodynamically, which dovetails perfectly with the Orofino philosophy. The pale colour and super bright acidity are awash in a lemon citrus. I’m not sure I’ve had a better Washington rosé — patio pink that works with or without food.
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Freixenet Premium Cava Carta Nevada Brut N/V, Sant Sadurní d’Anoia, Penedès, Cataluña, Spain
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$16.99 I 87/100
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UPC: 00088601004009
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This label has been around forever and has always been a well-made, inexpensive bubble choice. It has a bright, fresh nose of citrus and green apple that spills onto a barely creamy mid-palate with nectarine skin notes and some subtle almond flavours in a just-off-dry finish. It is best served with tapas-style appetizers. On sale through March 31.
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Luccarelli Negroamaro 2021, Puglia, Italy
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$16.99 I 87/100
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UPC: 8019873934505
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If you want a consistently performing budget red, getting to know this spicy, plummy, exotic southern Italian red would be useful. Negroamaro is a brooding mix of ripe black cherries, chocolate, coffee and balsamic notes that finishes warm and spicy, not unlike a California Zinfandel. Think pizza burgers or beef tacos as the match.
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Penfolds Koonunga Hill Shiraz Cabernet 2021, South Eastern Australia
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$19.49 I 89/100
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UPC: 09310297010905
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The master winemakers at Penfolds make this reliable label. It has been a winner since its first launch in 1976, as evidenced by the 35-year vertical I was a part of a few years ago, which revealed the aging capability of this classic blend of shiraz and cabernet. Look for a fresh red fruited affair with peppery plums shaped in a cool climate version that is more Bordeaux than Napa in structure. Long and soft, its raspberry, chocolate and bright acidity solidifies the appeal of a wine that will age a decade or more. It is ready to drink and on sale until March 31.
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Nielson Pinot Noir 2021, Santa Barbara County, Central Coast, California, United States
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$33.99 I 89/100
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UPC: 732099038694
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If you are a fan of Earls restaurants and need a wine selection, pick this uncomplicated Pinot Noir. It offers a juicy, delicious mix of red fruits from cranberry and pomegranate to Bing cherry, with a streak of cola and baking spices. The tannins are negligible, making it fun to sip. It is the best buy on the Earls’ wine list and is available at half-price on Tuesdays. You can also track it down in select private wine shops.
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Calendar items
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• Every year, Wine Growers British Columbia recognizes a few members for their contribution to the wine industry. In 2025, Michael Bartier, co-owner, winemaker and general manager of Bartier Bros. Vineyard & Winery located on the Black Sage Gravel bench in the south Okanagan Valley, was awarded the prestigious Leadership Excellence Award for going above and beyond to take a leadership role and build great relationships within the industry. This person positively contributes to the greater wine community in B.C., making it a better place to work and live. “Michael is not only an award-winning winemaker but also a steadfast advocate for industry-wide growth and collaboration. Michael’s expertise and generosity have supported countless industry professionals in their development,” said Paul Sawler, board chair of Wine Growers B.C.
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• The Mission Hill Family Estate Summer Concert Series is back with four headline performances, concert and culinary packages, and a new private balcony suite experience for a few lucky fans to watch the concerts from high above the open-air amphitheatre. The series will feature Canadian Music Hall of Fame rock band Blue Rodeo on July 7, award-winning singer-songwriter Jann Arden on July 17, award-winning Andy Grammer on July 31, and Gipsy Kings, featuring Nicolas Reyes, on Aug. 21. Tickets are now on sale for MHFE club members with priority access in order of membership tier. Public ticket packages go on sale April 15 at 9 a.m.
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B.C. Wine of the Week
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Haywire Switchback Organic Vineyard Pinot Gris 2020, Summerland Bench, Okanagan Valley, British Columbia, Canada
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$29.90 I 91/100
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UPC: 00626990161783
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Since its inception, we have tracked Summerland-based Switchback Vineyard’s extensive renovation and conversion to becoming certified organic. Switchback, the jewel of the Haywire empire, is no ordinary Pinot Gris vineyard and no ordinary wine. The home vineyard’s energy and concentration is alive and well in the generous 2020. The fruit is wild fermented and aged in concrete tanks for 10 months before coming out with a rich texture, light golden colour, and honey and sagebrush scent. The palate is stony, with a fresh citrus finish. It is one of a handful of Canadian Pinot Gris with the structure and complexity to be on the dinner table. Perfect now.
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Value Wine of the Week
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Louis Bernard Côtes du Rhône Blanc, Côtes du Rhône, Rhone Valley, France
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$15.99 I 88/100
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UPC: 604174000974
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Rinse and repeat is the storyline of a solid value year after year. This wine remains fresh and delicious and, for the price, a revelation regarding inexpensive white Rhone. The blend is a mix of Grenache Blanc, Bourboulenc, clairette and roussanne, with rich floral notes. The palate has a mineral, slightly bitter citrus note with a juicy and stony finish. We love the value here; backup the truck.
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