From the vagaries of the climate to the lingering impacts of COVID-19, the wine industry has been impacted and consumer behaviours have been altered. Today, the industry is facing many challenges, but four major ones are hitting it all at once: Generational preference shifts, increased competition, climate change and growing efforts to demonize the responsible and moderate consumption of alcohol.

WGC’s core advocacy efforts resulted in the Government of Canada announcing the extension of the Wine Sector Support Program (WSSP), with an additional investment of up to $177 million covering a three-year period from 2024-25 to 2026-27. This investment in rural economic growth in Canada’s highest value-added agricultural product will provide the support required for critical investments by Canada’s 600-plus wineries, delivering a positive return on investment for the federal government and wine value chain.

Over the past few years, Canadian vineyards have faced numerous challenges including input price increases, labour shortages, climate limitations and extreme weather events. The WSSP will allow Canadian wineries to invest in research, innovative technology, skilled labour and certifications, which will build the resilience of the sector and boost its future growth.

The commitment of the federal government to Canada’s wine economy was clear when the Honourable Lawrence MacAulay, federal minister of agriculture and agri-food, said, “Canada’s wine sector creates jobs, drives economic growth and supports so many communities right across the country. This extension of the Wine Sector Support Program will provide vitally important support to our wineries as they continue to innovate and adapt to challenges so the sector can stay strong and competitive for years to come.”

After months of advocacy by the wine, beer, spirits and restaurant sectors, the federal government also announced a two-year, two per cent cap on alcohol excise taxes (which are legislated to increase annually by the rate of inflation) until March 31, 2026. This ensured the excise duty on wine and other alcoholic beverages increased by two per cent on April 1, 2024, rather than the consumer price index rate of 4.7 per cent.

Looking ahead, WGC is focusing its efforts on engaging federal decision-makers to initiate the development of a comprehensive federal wine strategy. Such a strategy would provide a collaborative framework to quantify Canada’s wine cluster potential, boosting Canada’s grape and wine sector’s competitiveness and wine sales market share and addressing policy and regulatory options. This would create a more robust and sustainable industry capable of attracting investment, driving regional economic development and addressing the vagaries of climate change.

The first step in this process is the commissioning of a federal white paper to analyze the industry’s economic cluster potential. In tandem with these efforts, WGC is proactively monitoring and engaging in consultations on the federal temporary foreign worker program – ensuring vineyards have access to a required labour stream – and benchmarking Canadian sustainability practices against international norms and best practices, as more retailers seek to offer wine that is sustainable-certified.

With members from British Columbia, Ontario, Quebec and Nova Scotia, WGC advocates on a wide range of issues on behalf of its diverse membership. WGC is proud to represent wineries that, in total, craft over 93 per cent of the wine produced in Canada and seeks to continue increasing its membership to deliver real and sustainable benefits for the long-term prosperity of this important agricultural sector.

To learn more, please refer to the WGC website or contact WGC at winegrowerscanada.ca/membership-benefits/.

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.