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  
May 2015 $607 million
7%
$8,068 million
5%
May 2014 $569 million $7,651 million
     
Direct-to-Consumer Shipments » Month   12 Months  
May 2015 $141 million
4%
$1,896 million
14%
May 2014 $135 million $1,657 million
     
Winery Job Index » Month   12 Months  
May 2015 355
15%
256
20%
May 2014 308 213
     
 
MORE » Released on 06.15.2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Direct To Consumer
Wine Shipping Report
2015
 
Download full report »
 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

CALENDAR
  • July 7
     
    Sanitation Seminar, Napa
     
  • July 8
     
    Sanitation Seminar, Greenfield
     
  • July 9
     
    Sanitation Seminar, Solvang
     
  • July 9-10
     
    Wineries, Breweries and Distilleries
     
  • MORE »
 

READER COMMENTS
 
Article: Pull Red Blotch Vines, Get Paid »
 
I worked for a year with USDA in Washington to get Red Blotch identified as...
Reader: Bob Dempel
 
Article: Pull Red Blotch Vines, Get Paid »
 
I'll bet anyone in Napa and Sonoma counties I can find GRBaV in their red...
Reader: Guest
 
Article: New York Wineries Going Green »
 
Bravo to Lakewood for being an early solar adopter in the Finger Lakes wine industry!...
Reader: Suzanne Hunt
 
Article: New York Wineries Going Green »
 
Lakewood Vineyards completed work on their 47 kW (80 panel) solar array in 2012. It...
Reader: Benjamin Stamp
 
Article: New York Wineries Going Green »
 
I am wondering how substantial the electric bill is for wineries in the Finger Lakes...
Reader: Guest
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2015 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
 Enologist
 Prosser, WA
Winemaker/Enologist
 Vineyard Foreman
 Middletown, CA
Vineyards
 Consumer, Trade And Ou...
 Glen Ellen, CA
DTC, Tasting Room and Retai
 Administrative Assista...
 Napa, CA
General Administration and
 Harvest Sugar Samplers
 Santa Rosa & Santa Barbara, CA
Vineyards
 Northeast Field Sales ...
 Boston, MA
Sales and Marketing
 Harvest Cellar Lead
 St. Helena, CA
Cellar, Lab and Production
 District Manager North...
 Dallas, TX
Sales and Marketing
 District Manager Michi...
 Detroit, MI
Sales and Marketing
 Regional Retail Manage...
 Bentonville, AR
Sales and Marketing
 
More Job Listings >>
Follow Us On:
 
 





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

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2015 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.