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 - 7 / October 2009
Is it surprising that the Ontario wine industry, especially its small VQA wineries and independent grape growers, wallows in the midst of controversy, indecision, grandfathered entitlements and ambiguity ? With a weak economy, unfavourable weather conditions and inaction by both the Ontario government and the Wine Council of Ontario (WCO), the Ontario wine industry has been dealt a knee-buckling, one-two punch. Recovery will be slow and painful, and there will be casualties in the process - among both wineries and grape growers.
At the heart of current discussions is the "Cellared in Canada" (CIC) wines controversy previously examined in the Uncorked column of the Niagara Grapevine website. Many issues surround CIC policies and wines, including Ontario vs. foreign content percentages, content disclosure, labelling, LCBO shelving practices, the establishment of VQA-only stores, and CIC production entitlements.
The NAFTA agreement "enabled" wineries licensed before 1993, specifically Vincor, Peller and Colio, to gain certain marketing privileges. Only those wineries can produce CIC wines or sell their wines (VQA, CIC, non-VQA, fruit) through Ontario wine shops. That leaves more than a hundred Ontario wineries at a marked market disadvantage. The use of imported wines and grape juices in CIC wines also negatively impacts Ontario grape growers and the international image of Ontario VQA wines.
It is surprising to hear the Wine Council of Ontario defend current CIC wine standards and practices. According to Hillary Dawson, president of the WCO, 'using more domestic grapes could push the price up' ... it (increasing CIC Ontario wine content) would have a detrimental effect on the Ontario wine industry'. Not surprisingly, the Grape Growers of Ontario are juxtaposed, arguing that using more Ontario grapes in CIC wines will help offset now-annual Ontario grape surpluses (8000 tonnes in 2009). The cancellation of an LCBO per-bottle rebate for VQA wines that benefitted Ontario VQA wines sales, wineries and grape growers alike, precipitated a $4 million government bailout in 2008 for grape growers (4000 tonnes surplus), yet another example of the juggling and fumbling that typifies the Ontario wine industry.
At the Niagara Grapevine, we ask: