B.C. wine producers are bracing for the latest blow to cross-border alcohol sales, with the United States set to ban most Canadian alcohol imports later this month.
At Lightning Rock Winery in Summerland, the impact is expected to be significant.
“It seems that wine and booze in general in Canada and the U.S. is the punching bag for everything,” said Ron Kubek, owner of Lightning Rock Winery. “If I had known this, I wouldn’t have gone into the business.”
Kubek is bracing for the looming U.S. ban and the potential loss of roughly 500 cases of his wine sold in the United States each year.
“That’s about $120,000 to $150,000 a year,” he said.
At Painted Rock Estate Winery in Penticton, the direct financial hit is expected to be less significant, but the winery says losing access to the U.S. market could still have an important impact.
“It’s really important in terms of brand building. It’s something that we use to be able to get in front of important reviewers, in front of important influencers, and competitions,” said Lauren Skinner-Buksevics, the winery’s managing director.
B.C. wine producers were first hit with a 50 per cent tariff.
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Now, the U.S. is going a step further by moving to ban most Canadian alcohol imports entirely.
Jeff Guignard, president and CEO of the Wine Growers of British Columbia, says the consequences will be felt on both sides of the border.
“It’s going to hurt businesses on both sides of the border,” Guignard said. “When this ban comes in, it’s going to be Canadian producers, American importers, distributors, retailers, hospitality businesses who are going to be hurt by this.”
But Guignard says the broader implications of what he describes as a form of prohibition could be even more significant.
“I think it’s a really dangerous precedent that’s being set right here. It is showing us that the United States is a completely unreliable trading partner,” he said.
The latest development is prompting renewed calls for Canada to eliminate interprovincial trade barriers that make it difficult for Canadian wineries to sell across the country.
“This is the time to solve interprovincial trade barriers and this is the time to allow Canadian businesses to build their brand here at home,” Skinner-Buksevics said.
Kubek agrees, saying governments need to do more to support Canadian-made wine, including prioritizing domestic products in government-run liquor stores.
“The B.C. LDB (B.C. Liquor Distribution Branch) is promoting a South African winery, ‘win a car.’ They’re promoting an Italian winery, wine region, ‘win a trip in France.’ You know, the Penticton liquor store, the Penticton B.C. liquor store has 12 rows devoted to foreign wines and only two to B.C.,” Kubek said.
“We need to look in the mirror and fix our own problems first. Then we can deal with the U.S.,” he added.
The ban is set to take effect on Sept. 29.
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