The Canadian Wine Supercluster: An Economic Engine examines the combined impact of Canada’s regional wine clusters across six wine producing provinces: British Columbia, Ontario, Quebec, Nova Scotia, New Brunswick and Prince Edward Island. It highlights the sector’s growing national integration and outlines policy actions that could unlock its full economic potential.

The white paper provides a policy road map to unlocking nearly $4 billion in economic potential, guided by federal priorities on reducing internal trade barriers and rural development.

“Wine is more than an agricultural product, it underpins a broad, place-based value chain that supports manufacturing, tourism, transportation and cultural industries,” said Dan Paszkowski, president and CEO of Wine Growers Canada (WGC). “The Canadian wine sector also generates significant strategic spillovers, driving tourism, innovation, domestic and export sales and sustained growth in rural communities across the country.”

The report estimates that the wine industry directly contributes $3.2 billion to Canada’s GDP, with an additional $6.9 billion generated through interconnected sectors, reinforcing its role as a stable, high value contributor to the Canadian economy. The study also highlights the opportunity presented by ongoing interprovincial trade reform. If Canadian wines were to reach a 51 percent domestic wine sales market share, the sector’s total annual GDP contribution could increase by $3.6 billion.

Despite strong performance and steady growth over the past decade, the report finds that Canada continues to lag leading wine producing countries that benefit from co-ordinated government industry strategies, long-term market development programs and fewer internal trade barriers.

The white paper identifies four priority policy areas where targeted government action could accelerate growth:

• Domestic and international market development
• Federal leadership in economic development co-ordination
• Enhancing sector competitiveness and investment conditions
• Capital investment and sustainability programs

“Canada’s wine industry is uniquely positioned to grow as a nationally connected supercluster,” said Del Rollo, chair of WGC. “By strengthening internal trade, supporting investment and improving market access, governments can help unlock the full economic potential of Canadian wine from coast to coast.”

About the Report

The Canadian Wine Supercluster: An Economic Engine provides a policy-ready framework to strengthen domestic growth, improve competitiveness and unlock long-term investment in Canada’s wine sector.

A New Brunswick-based company is tapping into that interest, and it could have a profound impact on the way many craft wine, beer and spirits makers go about producing their products. The Smart Energy Company is a renewable energy developer based in Upper Golden Grove, N.B. It was founded by brothers and co-CEOs Jeff McAloon and his brother, Mark, in 2016.

The company’s signature product is the NOREASTER, a modular, stackable micro solar energy system designed to power farms located in regions that experience significant snowfall, fog and wind. While the system can be used on virtually any farm, it has become particularly popular among craft spirits producers in Eastern Canada. Verger Belliveau Orchard, a family-owned business in Memramcook, N.B., that produces ciders and wines, and Blue Roof Distillers, which produces a potato-based vodka in Malden, N.B., are among its adopters.

The ground-mounted system is a 34-foot-long, 10-kilowatt solar array that converts energy from the sun into alternating current electricity using an inverter contained within the unit. Its modular design means that it can be scaled to meet the energy requirements of any size of operation. Jeff says one of the main reasons the NOREASTER is a good fit for producers in the beverage-alcohol sector is the fact that it offers producers control over their energy costs.

“Buying your electricity to produce fruit or … harvesting the fruit to produce a final beverage can be a very energy-intensive activity,” Jeff said. “Right now, most of those producers are essentially renting their electricity from the utility. If they start to take over the generation of the electricity themselves, that’s a cost they can now eliminate or have fixed for the next 40 or 50 years, which can add up to a pretty significant saving.”

Another asset that makes the NOREASTER attractive to beverage producers is its modular design, which allows users to start small and expand down the road when it is convenient. It also means the system can be configured in a variety of different ways to minimize the amount of space the land-based system requires, an important consideration for producers trying to maximize the amount of harvestable land available to them.

“We don’t want to take up valuable crop space, so we’ve designed them [to be installed] in small chunks,” Jeff said. “Some farmers may need just one NOREASTER to offset a meaningful amount of electricity. Others may need 10, others may need 50 and others may need 120. It’s meant to be scalable.”

Where it once would have taken 15 years or more for a solar system to pay for itself, that timeframe has now shrunk to four to six years, thanks to increased electrical costs and improved government rebates and incentives for alternate forms of energy production.

The system is an ideal fit for producers who have adopted agrivoltaics principles, a dual-use land approach that combines solar energy production with agricultural production. Not only does it provide cheaper energy, but it is also capable of protecting crops or soil from harsh conditions such as heavy rains or strong winds, Jeff adds.

The NOREASTER is both manufactured and distributed by The Smart Energy Company. The brothers started out using solar power systems manufactured by other companies, but quickly discovered they couldn’t stand up to the harsh winds and wicked ice storms that many East Coast communities endure. That led to them designing their own system in conjunction with researchers at the University of New Brunswick and the Saint John Energy utility company.

“One of our earliest customers was a dairy farmer. He called us one day after a particularly harsh winter storm and said ‘Boys, my solar panels are flying through the field. Is that supposed to happen?’” Jeff recalled. “I can laugh about it now, but we weren’t laughing at the time. We spent a year going back and fixing and rewelding and beefing things up. It’s now built to be robust for any kind of storm that can be thrown at it, hence the name.”

The NOREASTER comes with a 50-year warranty. It costs about $25,000 per kit and that price can climb to about $50,000 when it’s partnered with a battery system or generator. Some provincial rebates are available to buyers, and the federal government passed a 30 per cent refundable tax credit for incorporated farm businesses who convert to renewable energy.

Jeff says the system can pay for itself within five to seven years depending on utility rates in a given jurisdiction. In Ontario, for example, the NOREASTER can produce a single kilowatt hour of energy at a cost of three or four cents compared to 14 to 18 cents for the same kilowatt hour supplied by that province’s energy utility.

Another selling point of the NOREASTER, which won a National Clean Energy Award, is that it’s relatively easy to install. About 90 per cent of The Smart Energy Company’s customers install the kits themselves, though a qualified electrician is required to connect the finished product to an operation’s power supply system. Jeff says the first conversation his employees have with potential customers typically focuses on what the current energy consumption of their operation is and how much of that can be offset using the NOREASTER.

In some cases, it can be as much as 100 per cent. Once that has been established, a consultant helps the customer determine what their budget is, decide how much space they have available and how many units that space can accommodate. Jeff says it’s interesting how many of his customers are largely unaware of their energy consumption prior to installing the NOREASTER, but become keenly aware of it after using the system for a while.

“Most farmers we talk to aren’t really aware of what their electricity costs are. They just have a general sense that electricity costs are going up,” Jeff said. “But once we’re finished talking to them and educating them about how they can generate their own electricity they become hyperaware. They go from that state of unawareness to looking at the energy app on their phone every single day to see how much energy they are producing and how much they are using.”

Verger Belliveau Orchard owner Samuel Bourgeois installed five NOREASTER units on his 110-acre operation last summer and they have been operating since November. They supply between 50 and 60 per cent of the power required to operate the orchard’s cidery.

Bourgeois says his family has always advocated for the use of sustainable and innovative farm practices, so switching to an alternate source of energy was a no-brainer. After several years of investigating the choices available to him, including wind, he chose solar since it was the most affordable option and can be tailored to fit any size of operation. “It was the one that made the most sense for us,” he said.

Bourgeois says shifting to solar energy has already had an impact on his business. His energy costs have remained static despite a recent price increase instituted by his local utility. “It’s kept our [power] bills where they were at,” he said. “That’s one of the things that I kind of like about solar. It should stabilize your energy costs. With the power company, you don’t know when you’re going to have increases. This way, it’s much easier to budget for your utility costs.”

Bourgeois admits he did experience a few surprises soon after the system became operational. Perhaps the biggest one was the fact the system began producing power immediately, despite cloudy conditions at the time. “It still produces a little bit of power even though it’s quite cloudy. For me, that was a surprise, in a way. I always thought it was only going to run when there’s sun outside,” he said.

The other surprise for Bourgeois was the fact that, when it snowed, the solar panels managed to clear up by themselves and lost very little energy-producing capacity. “That was a good thing,” he said. “That’s something we were hesitant about initially. We can have some big dumps of snow here once in a while, and if we have to clean them every time, that’s another job we have to do.”

Not only has the switch to solar power helped with the orchard’s bottom line, but it’s also earned the business two thumbs up from many of its customers. The solar panels are visible as soon as clients walk into the orchard’s yard and they often generate questions and kudos.

“There might not be any [return-on-investment] directly related to that, but long-term, if the customer knows that we care about the environment and we care about the people around us, hopefully that brings them here to buy our products or gets them thinking about us at least,” he said.

Bourgeois’s advice to beverage-alcohol producers who may be contemplating a switch to solar is to do their homework and find out what kind of provincial or federal incentives are available to them to help reduce installation costs. He also recommends they shouldn’t be afraid to try something new. “I understand the farmer that’s maybe close to retirement not wanting to leap on it. But that next generation … if it’s something that fits in that farm’s perspective and there’s capacity to borrow, I would not be afraid of it,” he said.

Jeff suggests business owners look at the latest data available before jumping to any conclusions about whether or not solar power is a suitable option for their operation. He says in the past five to 10 years the “payback” for solar has changed considerably. Where it once would have taken 15 years or more for a solar system to pay for itself, that timeframe has now shrunk to four to six years, thanks to increased electrical costs and improved government rebates and incentives for alternate forms of energy production. What has Jeff excited about the future is industry and individuals alike are now talking more and more about energy consumption and how to become smarter consumers of energy.

“We need to generate our own clean energy and then we need to be smart about how we use that energy. As we gain an understanding of something, we’re better able to manage it, manage it more effectively and efficiently. It’s that sort of energy awareness that I’m most excited about,” said Jeff.

A local distillery is getting a fresh infusion of energy, vision and deep community roots as entrepreneurs Ashley and Matt Graham, owners of Homestead Orchards in Woodstock, take the reins at Moonshine Creek Distillery, relaunching it as Downriver Beverage Co. At the heart of this story is a love for local.

What started as a small orchard side hustle in 2017 has grown into a thriving agritourism destination with 3,000 apple trees, a popular cider line and, now, a full-fledged expansion into craft spirits. For Ashley, the new venture is more than a business move – it’s a way to support fellow farmers, create local jobs and showcase the incredible flavours grown in N.B. “I’m excited to be starting this next venture with Downriver Bev Co.,” said Ashley. “We hope to continue collaborating with local producers and to help find markets for more [N.B.] goods.”

Fans of Moonshine Creek’s unique spirits, like the Chicken Bones Liqueur or the Downriver Whisky, will be glad to know the legacy is in good hands. Former head distiller Jeremiah Clark is staying on as the lead distiller at Downriver Beverage Co., ensuring continuity in quality and creativity. “We have new creations to come and will continue to make the same products people know and love,” said Clark. “People love natural products that connect to their community … It’s great to share my passion with dedicated entrepreneurs who want our region to succeed.”

With the Grahams’ acquisition, customers can expect to see an expansion not only in traditional spirits, but in exciting new directions, like barrel-aged ciders, and an expanded sparkling cider line that celebrates the rich agricultural bounty of the region.

The Grahams’ business model has always been community-first. Their Homestead Orchards property doubles as a working farm and welcoming agritourism destination. It’s a place where school groups learn about farming, families shop at the farm market and locals gather to enjoy cider made on-site. The move into distilling builds on that foundation, creating new opportunities for collaboration with other N.B. growers and producers.

The location of the distillery – just off the Trans-Canada Highway at Exit 172 – makes it an ideal stop for both locals and visitors. Whether a curious tourist or a long-time fan of craft spirits, Downriver Beverage Co. offers a distinctly N.B. taste of home and hospitality.

One of the most exciting parts of this new chapter is the opportunity to further develop non-alcoholic offerings. While Homestead Orchard’s fresh cider is a seasonal favourite, its sparkling cider is available year-round, and the Grahams plan to grow that line to reflect the same dedication to local sourcing and flavour. “Our beverages should welcome visitors to [N.B.] and give residents a taste of home they will enjoy,” said Ashley. “[N.B. residents] are hospitable, helpful and caring. That’s the message we want everyone to receive.”

Downriver Beverage Co. products are available at the Waterville distillery online at downriverbevco.com and moonshinecreek.ca.

The original brewpub location at 5 Orange Lane remains, and a second brewpub location opened in 2022 in Shediac, N.B., just 20 minutes northeast of Moncton. Prior to co-founding Pump House, Shaun was a consultant to DME Brewing Solutions, so Pump House has a lifelong affinity for equipment from the Canadian company.

In the beginning …

The Frasers started with six beers: Blueberry Ale, Cadian Cream Ale, Fire Chief’s Red Ale, Muddy River Stout, India Pale Ale and Bohemian Pilsner. Beers of these styles were common for brewpubs at the time, and served alongside wood-fired pizza, Pump House quickly established itself is a local favourite for beer lovers and food lovers alike.

Their most popular beer was the Blueberry Ale and its popularity fueled Pump House’s growth, meriting the building of the 25-barrel production and packaging facility on Mill Road in 2003. Pump House’s never-ending insistence on quality in the brewpubs and the production facility has helped it grow to be one of the largest breweries in Atlantic Canada. In 2005, Pump House was awarded Brewery of the Year at the Canadian Brewing Awards.

While Blueberry Ale was easily Pump House’s most popular brew, all of the original beers were popular and remain in production, a testament to 25 years of consistent quality.

The next chapter

In 2016, Pump House launched Crafty Radler. The popularity of that beverage grew so quickly it is now its own sub-brand for Pump House, coming in four flavours (grapefruit and tangerine, blood orange and peach, limonchello and lime, and tart cherry and blueberry) with unified packaging that is distinct from Pump House’s other beers. Crafty Radler now represents two-thirds of Pump House’s production.

“This is the engine that now drives the brewery,” said Brian Harriman, co-owner of the brewery, noting that Blueberry Ale remains the top-selling beer in the brewpubs.

It was in 2020 that the Frasers decided to start a new chapter of their lives and sold the brewery to Harriman, Brad Devarennes and Kolin Barley, three local, long-time friends who have continued Pump House’s exponential growth with expansion across Canada and into export markets, and investment in automation at the brewery. New ownership has also introduced new beers and new products. Harriman is particularly proud of Pump House’s Uncommon Kölsch, a low-calorie Kölsch with only three grams of carbohydrates.

“We won a Silver Medal in the Kölsch category at the 2023 Canada Beer Cup,” he said. “And we did it competing against regular, full-calorie beers.” Harriman is quick to add that while he is proud of that new beer, Muddy River Stout also won a Gold Medal in the Stout category at the 2023 Canada Beer Cup. “It’s great to see our classic beers continue to win awards alongside our new beers.”

Pump House added Real Vodka Water in four flavours: watermelon kiwi, blueberry yuzu, lemon lime, and raspberry peach (four per cent ABV, 100 calories, vegan and gluten-free). In a unique twist, the flavoured vodka waters are uncarbonated. Tapping into the market of health-conscious drinkers made Real Vodka Water grow tremendously, with the vodka waters now representing 20 per cent of Pump House’s business after launching in May 2022.

Pump House also has a line of hard seltzers under the Venerdi Italian Seltzer brand. Sold in slimline cans and offering six per cent ABV, Venerdi Italian Seltzer comes in pink lemonade, tangelo and green apple flavours.

Keeping the House in order

“It’s a huge priority for us to stay true to what we do well,” said Harriman. “We have a team of brewers producing quality beer consistently.” While Pump House has introduced and succeeded with new lines of products and offers seasonal beers, continuing to brew those six original beers is a consistent benchmark to ensure brewing does not deviate from standards. It serves as a signal to their original fans that the brewery will always be a part of their community; nobody is going to take away Moncton’s favourite beer.

That dedication is also given to the Pump House team. “We want Pump House to be a great place to work,” said Harriman. The brewery and brewpub employ 132 people. On the financial front, Pump House has provided consistent wage increases, but more importantly, Pump House creates a safe workplace for a diverse workforce.

A current team of four brewers – Navjot Singh (head brewer), Glenn Kervin, Oluchi Amadi and Brannan Walsh – runs the brewery. Over the years, Pump House brewers have come from Germany, China, India and elsewhere, with experiences at breweries of different sizes. Those different backgrounds influence and improve Pump House’s operations. Harriman notes that a brewer with a German background was instrumental in developing Pump House’s original Crafty Radler.

A recent hire in the packaging department is an immigrant from Ukraine who was displaced by the ongoing war there. “The diversity of our team brings a different global perspective to beer brewing,” said Harriman.

Taking care of that team is a top priority, so many employees have been with Pump House for 15 to 20 years. “Our keg filler, Stephen Emmerson, has been with us for over 10 years, manually cleaning and filling probably 12,000 kegs per year,” said Harriman. “He’s probably filled over 100,000 kegs!”

Kervin recently brewed his millionth litre of beer. For that milestone, he was asked to brew any beer he wanted – he chose a Bière de Garde – and Pump House sent him on a once-in-a-lifetime trip to a NASCAR race.

Pumped for the future

Harriman, Devarennes and Barley have backgrounds in beer and hospitality, and knew they had the experience to grow the brand. Breakthru Beverage Group was recently appointed Pump House’s national sales agency and the company builds upon the platform in every province of Canada (except Quebec) by growing sales of existing products and marketing the new product line extensions.

“We have worked with Beer Canada on regulatory issues and provincial markup policies. It’s just nice to have an association to call that has so much experience and knowledge when you are navigating the industry as a small player.”

Brian Harriman, Pump House Brewery

International sales have also grown in select markets around the globe, but the Pump House team is particularly excited to double the number of states distributing its beers south of the border, from four to eight. All this growth has necessitated investments into the Moncton brewery. Pump House has added more tanks, a new kettle, a new glycol chiller and a fully automated packaging machine.

Beer Canada has also supported Pump House’s growth.

“Beer Canada has been a good ally and resource for us as we work to grow our business nationally,” said Harriman. “We have worked with Beer Canada on regulatory issues and provincial markup policies. It’s just nice to have an association to call that has so much experience and knowledge when you are navigating the industry as a small player.”

In 2024, Pump House will celebrate its 25th anniversary. To honour the occasion, Moncton’s beloved brewery will release three special beers. The first is Evolution Brut IPA and two more are planned. The two brewpubs will introduce new, fun menu items and a large celebration is planned for September to mark the actual anniversary date.

“Pump House is a well-loved brand in the Maritimes, built by people who want to make quality beer and have fun doing it,” said Harriman.

By building upon the success of the Frasers, supporting a strong and diverse team, and investing in new equipment, Pump House is starting a new chapter of 25 more years of success.

Introduced as a two-year pilot program in 2022, the WSSP aimed to assist the Canadian wine industry in adapting to persistent challenges, including adverse climate events, surging inflation and sustained competition from major wine-producing countries that dominate wine sales in Canada. The sector continued to grapple with many challenges.

Dan Paszkowski, president and CEO of WGC, emphasized the significance of the announcement.

“Canada’s 600 wineries and nearly 2,000 grape growers contribute significantly to job creation, drive rural economic development and attract over four million wine country tourists annually,” he said. “[The program’s] renewed investment serves as a foundation for Canadian wineries, investors and associated businesses, guiding crucial decisions, particularly in the face of challenges like vine replanting. We applaud Minister MacAulay’s leadership and the Canadian Government’s continued partnership in advancing this important value-added industry deeply rooted in local agriculture.”

The extended WSSP will help provide certainty for grape-growing communities in British Columbia, Ontario, Quebec, Nova Scotia, New Brunswick and P.E.I. Its implementation is anticipated to provide a stable environment for wineries, fostering job creation and economic growth across Canada.