Wine in Canada

PROSPECTS

Uncertainty lingers over potential impact of trade deals on wine

Considerable uncertainty over the multiple trade rulings expected during 2018 remains a major influence on wine in Canada. The Canadian Supreme Court is expected to issue a ruling on the legality of inter-provincial trade barriers mid-2018, while a working group of provincial governments is expected to issue recommendations for reducing inter-provincial alcohol trade barriers.

Evolving grocery channel showcases potential for wine producers

2017 saw Ontario allow the sale of wine through grocery stores, with 70 wine retailing licenses issued. British Columbia also allowed grocery sales of wine during 2017, with 21 grocery stores selling wine by the end of the year.

Sparkling wine: Promotions and consumer tastes spur strong performance

Sparkling wine experienced strong growth in 2017, driven by optimal summer weather throughout Canada, promotional activity by Provincial liquor boards and an appetite for sweeter tastes. Millennials have taken to sparkling wines as a cocktail mixer and may view sparkling wine as aspirational.

COMPETITIVE LANDSCAPE

Wine remains fragmented, with multiple imported and domestic players

Wine in Canada is a fragmented category, with Arterra Wines (formerly Constellation Brands) and Andrew Peller in the leading positions in 2017. Multiple domestic and imported players such as British Columbia’s Mission Hill Family Estate Winery and Distell have established quite strong positions; nevertheless, the category has been described as “fractured” and this fragmentation is expected to remain a key feature of wine throughout the forecast period.

Still rosé wine rising: Promotions and consumer interest deliver continued growth

Still rosé wine stood out as the most dynamic still light grape wines category in 2017. Historically still rosé wine consumption has been heavily focused on spring and summer; however, the category has evolved to become a more year-round beverage coupled with heavier consumption during seasonal times.

Restrictions on wine sales deregulation place limits on grocery channel growth

The deregulation of wine retailing in Ontario and British Columbia has generated more interest in wine among consumers. However, deregulation does not represent wholesale change and is being implemented on a gradual basis.

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