US becomes Canada's third-largest supplier

  • Wednesday 11 May 2011

The US has become Canada’s third-largest wine supplier with exports increasing by one third in 2010.

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.

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