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Uncorking Canadian Wine Imports
By Kathleen Wainio
In recent years, Canadian
consumers have shown a greater willingness to try wines from
other countries. Imported wine has increased its market share in
Canada from just over 50 percent 10 years ago, to an estimated
level of more than 65 percent in 1998. Trade sources estimate the
total wine market in Canada at close to 24 million cases.
Although U.S. wine exports face stiff competition from traditional European wine-exporting countries and from Southern Hemisphere wine producers, the outlook for growth in U.S. sales continues to be bright. Canadian imports of U.S. wine in 1997 reached a value of nearly $67 million, representing about 16 percent of total Canadian wine imports. In volume terms, the United States is the No. 2 supplier of wine to the Canadian market, surpassed only by France.
In Canada, white wine sales account for about 44 percent of the total wine market, although white wine consumption has been losing ground to red wine in the past several years. Red wine now represents more than 39 percent of the market. Trade sources indicate there is room for continued growth in the rosé and blush categories.
The largest wine markets in Canada are the provinces of Quebec, Ontario, British Columbia and Alberta. These four provinces represent more than 90 percent of total wine sales in Canada. The two most populous provinces, Quebec and Ontario, represent about two-thirds of the total Canadian table wine market.
One of the challenges facing U.S. exporters of wine to Canada is the wine distribution system, which differs in each of the 12 Canadian provinces. Each province has a liquor control board, and these boards are the only entities that can legally import wine into Canada. In most provinces, these liquor authorities manage retail stores and license agency stores. An exception is the province of Alberta, which, in 1993, privatized all liquor retailing. The Alberta Liquor Control Board continues to act as the importer and wholesaler of wine.
In general terms, U.S. exporters are required to have their products "listed" by the provincial liquor control agency. In many provinces, U.S. exporters must have a registered agent who provides the necessary marketing support within the province and helps to obtain a provincial liquor board listing.
Typically, an agent will lobby and negotiate with the provincial liquor boards to get a wine listed or to improve the type of listing. Other agent services fall under the headings of "sales" or "promotion." Liquor boards devote limited resources to promotion and expect wineries or their representatives to take responsibility for product promotion.
U.S. exporters interested in the Canadian wine market should contact the liquor board in the provinces they are targeting for a list of registered agents. A list of provincial and territorial liquor boards may be requested from the U.S. agricultural office in Ottawa.
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Kathleen Wainio is the U.S. agricultural attaché at the U.S.
Embassy in Ottawa, Canada. Tel.: (613) 238-5335, ext. 267; Fax:
(613) 233-8511; E-mail: agottawa@fas.usda.gov
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