Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
09.05.2013  
 

British Columbia Wines Stall in Home Market

Sales revenues are up in B.C., but market share and price per bottle dip

 
by Peter Mitham
 
 
british columbia wine
 
Vancouver, British Columbia—The economic impact of the British Columbia wine industry is significant—more than $2 billion, according to a study released earlier this year—but local producers are facing equally significant challenges holding their own against a tide of foreign competitors.

While more than 90 labels showed up at this week’s fall release event in Vancouver hosted by the British Columbia Wine Institute, the latest numbers from the B.C. Liquor Distribution Branch (BCLDB) indicate that wines entering the market face stiff competition.

Wines bearing the B.C. VQA designation—granted to wines made entirely from B.C.-grown grapes that meet established quality standards—saw their share of dollars spent on wine in B.C. peak at 20.4% in 2010 (BCLDB figures do not include cellar door sales). By the end of 2012, market share had fallen to 18.9%—and despite rising in June, preliminary numbers for the 12 months ended Aug. 31 suggest their share of the market had dipped to 18.6%.

A piece of the pie
The shift comes despite a rise in sales of B.C. VQA wines, which totaled $178 million in 2012, up from $146 million in 2008.

“While we continue to grow our piece of the pie, the pie is getting bigger faster than our piece,” Miles Prodan, executive director of the B.C. Wine Institute, told Wines & Vines. “We’re selling more juice, but we’re not making as much money (per bottle).”

Competitors include California, which was featured at this year’s Vancouver International Wine Festival and poses a formidable challenge to B.C. producers.

“There’s a lot more product in the system, so it’s becoming more competitive for B.C. VQA wines,” Prodan said. “It doesn’t help that we’ve got, for instance, places like California that are focussed on the Canadian or B.C. (wine markets) and have that supported with multimillion-dollar consumer advertising campaigns.”

Money to spend
Canada’s strong dollar in 2011 and 2012—it’s traded at near par with the U.S. dollar—has helped make it an attractive export market. Domestic buyers have used their buying power to snap up foreign wines at prices much cheaper than any point in recent years.

Consumers keen to buy local have supported an overall rise in the average price of a bottle of B.C. VQA wine, with the average price through the BCLDB now approximately $15.65, up from $15.42 in 2010.

However, the past two years have seen pricing inch back from a peak of $16.08 in 2011.

“The prices aren’t as high as they have been. It’s competitive pressure. We’ve got the quality, we’ve got the quantity, but it’s the consumer that’s driving that for us,” Prodan said.

“Before ’08 there were $40, $50, $60 bottles of B.C. VQA wine. When the market corrected people traded down, and it hasn’t gotten back up there. And even more problematic for B.C. is that there’s a lot more competition in those price bands, so it makes it hard to drive those prices up.”

This hasn’t stopped producers from releasing bottles at the $100 mark—most recently, La Stella Winery in Osoyoos, B.C., with its 2010 Maestoso “Solo” Merlot—but as Prodan noted, “There’s a lot more choice out there of the moderate priced wines.”

The shift among consumers means direct relationships with consumers are assuming greater importance—both wine tourism and wine clubs.

“It’s really about establishing their own brand,” he said. “The new growth is ‘just maintaining.’”

SHARE »
Close
LATEST READER COMMENTS
 
 
Posted on 09.09.2013 - 15:07:18 PST
 
Thanks for the comment, Wine Appreciator: BC wines may not be out of favor, but the numbers indicate challenges. Given the BC Wine Institute's stated hope of seeing BCVQA wines enjoy 22.8% market share (in dollar sales) at home by March 2017, there are definite headwinds to overcome.
 
Peter Mitham
 
Vancouver, BC Canada
 

 
Posted on 09.09.2013 - 12:00:17 PST
 
I prefer to look at it this way... BCVQA wine is growing it's share of total litres in British Columbia. Any time the wine-consuming public is choosing to drink more BC wine, it's a good thing. Dollars may be a different story and they are important too. But this story makes it sound like BC wine is falling out of favour in its home market and that is far from the case.
 
Wine Appreciator
 
 
 
CURRENT NEWS INDEX »


 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
info@winesandvines.com
Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
March 2013 $546 million
5%
$6,988 million
7%
March 2014 $572 million $7,451 million
     
Direct-to-Consumer Shipments » Month   12 Months  
March 2013 $177 million
20%
$1,483 million
10%
March 2014 $213 million $1,634 million
     
Winery Job Index » Month   12 Months  
March 2013 253
15%
166
27%
March 2014 292 210
     
 
MORE » Released on 04.14.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • April 19
     
    Appellation St. Helena food pairing competition
     
  • April 23
     
    Sustainable Vineyard Practices: Strategies for Using Less Water
     
  • April 23-26
     
    CABs of Distinction in Paso Robles
     
  • April 26
     
    Siera Pelona Valley wine festival
     
  • MORE »
 

READER COMMENTS
 
Article: Starbucks Expands Wine Sales to More Cities »
 
Pretty amazing that the 1st wines chosen are from Argentina, Italy, and New Zealand! I...
Reader: Jacques Brix
 
Article: Starbucks Expands Wine Sales to More Cities »
 
Given Starbucks commitment to sustainability and global responsibility, I expect this move could be a...
Reader: Guest
 
Article: What to Do About Red Blotch »
 
There is NO correlation with planting density. Also FPS is working on the problem. New...
Reader: Guest
 
Article: Premiere Wine Auction Nets $5.9 million »
 
Thanks for letting us know Janet, we've updated the story. Cheers
Reader: Andrew Adams
 
Article: Will Barrels Go the Way of Floppy Disks? »
 
Fun piece. Particularly enjoyed the three clearly superior attributes of standard barrels, including looking cool...
Reader: Tom Gable
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2014 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
LEARN MORE »
 
 
Wines & Vines Magazine
 
 
LEARN MORE »
 
SUBSCRIBE »
 
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
 
LEARN MORE »
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Vip & Trade Coordinato...
 Sonoma, CA
DTC, Tasting Room and Retai
 Pricing Systems Analys...
 San Francisco, CA
Finance
 Fine Wine Sales Repres...
 Seattle And Portland, OR
Sales and Marketing
 Maintenance Mechanic
 Healdsburg, CA
General Administration and
 Wine Sales South Bay
 Santa Clara, CA
Sales and Marketing
 Full Time Retail Wine ...
 New York, NY
DTC, Tasting Room and Retai
 Harvest Intern
 Yamhill, OR
Winemaking and Production
 Office Manager
 Napa, CA
General Administration and
 Staff Accountant
 Napa, CA
Finance
 Production Associate
 San Rafael, CA
General Administration and
 
More Job Listings >>
Follow Us On:
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Digital Edition

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2014 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.