Decanter World Wine AwardsUS becomes Canada's third-largest supplier
- Wednesday 11 May 2011
Ontario: 'world's largest wine buyer''
Canada bought 30% more wine in 2010 than in the previous year, totalling US$269m, according to American government statistics.
There was also a substantial 12% growth in volume, a report from the US Department of Agriculture published at the end of April says.
The US is now the third-largest supplier of wine to Canada, its market share increasing to 16% – behind France and Italy, but ahead of Australia.
The US also registered the strongest growth by any supplier in Quebec, Canada's largest provincial market for wine, with California wines moving to the top sales position in Vintages, the premium wine section in Ontario's Liquor Control Board stores.
According to the report, the strong showing has roots in increased overall consumer demand, a weaker US dollar relative to European currencies, and consumer interest in US varieties and price points
The Canadian government, via state-run Liquor Control Boards, controls wine supply. The government-run monopoly in the largest province, Ontario, buys some 8.5m cases annually, making it the world’s largest single purchaser of wine.
Government taxes make up almost three-quarters of the price of wine.
Have your say!
Ernie Keenes
May 13 13:21
Your description in the penultimate paragraph of the Canadian retail market situation is slightly misleading (wholesale remains almost all government). The market situation varies from province to province. In Manitoba, from where I write, we have both a provincially-run retail system, and several private wine stores (at one of which I work). They are both our competitor and our regulator (we cannot sell beer, spirits, or liqueurs). This is similar to British Columbia. Saskatchewan next door has now some private retail too. Alberta is almost all private. But Ontario is almost all government (except for retail stores run by wine producer/importers who sell their own product). Quebec has the SAQ government systems, plus some wine sales in depanneurs (corner grocery stores). As you can see, complicated.
Ernie Keenes, Winnipeg