The opinions expressed in NGV Uncorked regarding the Niagara and Ontario wine industry are those of the author. Niagara winery & wine selections in NGV Uncorked reflect personal preferences and are based on recent winery visits and tasting sessions, not reviews by wine critics / writers or industry wine awards.
Vol. I - 8 / December 2009
Niagara's major wineries have discontinued their membership in the Wine Council of Ontario (WCO) hoping to negotiate better terms with both grape growers and the Ontario government. Those leaving the WCO include Magnotta, Andrew Peller (Peller, Hillebrand, Trius, Thirty Bench), Diamond Wines (Lakeview Cellars, DeSousa, EastDell, Twenty Bees, Dan Akroyd, Birchwood, Southbrook), Colio, Vincor (Jackson-Triggs, Inniskillin). Among them are the only wineries entitled to produce wines under the LCBO's "Cellared in Canada" (CIC) label - a marketing privilege couched in the NAFTA agreements.
Recently, the Ontario government and the Wine Council of Ontario had amended CIC content requirements and labelling practices, something that obviously did not sit well with Ontario's major wineries. In 2010, CIC domestic wine content will be raised to a 40% minimum (up from 30%) - far short of the 50, 60 or 75% that could make use of the entire Ontario grape crop, thereby rescuing small-crop grape growers and eliminating bailouts made necessary by unsold grape surpluses.
Although funded in part by the government, the loss of membership fees from its biggest contributors should send the WCO scurrying to recruit Ontario's non-VQA wineries that use only Ontario-grown fruit (of which there are many) - both grape and tree-fruit vintners. Presently, only about half of Ontario wineries (all types) belong to the Wine Council of Ontario. The recruitment of more winery members will not only strengthen the organization but its leverage at the bargaining table as well, especially in terms of marketing opportunities - e.g. LCBO shelving, VQA standards & fees, VQA / Ontario only stores.
However, by 2014, domestic content requirements will be eliminated in re-labelled and, hopefully, re-titled CIC (imported) wines. Since CIC wines now incorporate 50% of the Ontario grape crop, the promotion of VQA and 100% Ontario wines had better be vigorous or small wineries will be facing failure and grape growers will be right back where they are now, with crop surpluses and looking for government bailouts.
The possibility of franchised, VQA / Ontario-only wine shops is also getting another look, again under the auspices of the LCBO. For densely populated areas and "wine country", this seems an obvious step forward. Such shops would better enable Ontario's 100+ small estate wineries to get their VQA and Ontario-only grape and tree-fruit wines on the shelves - something not easily accomplished at LCBO stores replete with imported wines and spirits.