Wines & Vines

May 2013 Packaging Issue

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J AAN U N E W SN E W S M Y ARY Headlines NEWS BYTES Red Mountain Moves Forward L ocal county officials approved a 21acre "wine village" plan for Washing- ton state's Red Mountain area. Created by Bend, Ore., landscape architecture British Columbia Wine Contributes $2 Billion New report estimates impact province's wine industry has on economy; taxes to increase P enticton, B.C., Canada—Spring Wine Industry Impact and Taxes has delivered a bouquet of optimism to British Columbia's buoy British Columbia ant wine industry—and a reminder Year 2011 that the industry pays its share of taxes. Economic impact $2 billion A report about the economic impact of Winery revenues $332.9 million the province's wine industry suggests it's Case sales 3.9 million the very picture of health, with 212 wineries and 864 vineyards totaling more than Acreage9,867 9,860 acres. The report pegs the industry's Taxes $222.3 million economic impact at $2 billion, or $42 for Government markup $75.4 million every domestic bottle of wine produced. Total taxes/impact 11.1% (All figures are reported in Canadian dollars; a Canadian dollar is worth about 97 cents U.S. today, though it has been tradWhat stands out in the study, however, ing at about par with the U.S. dollar dur- are the high taxes levied upon Canada's ing the past two years.) wine industry. The industry pays $879 Mike Raffan, owner of Township 7 million annually in direct taxes, with an Vineyards & Winery, which has locations additional $342 million contributed to in both the Okanagan and the Fraser Val- government coffers through liquor board ley, was on the board of the B.C. Wine In- markups. Seen as a percentage of the institute when the report was commissioned dustry's total economic impact in Canada, in 2011. "We knew it was big, but we had taxes represent 12.9% nationally. no idea what that number was," Raffan In the neighboring U.S. state of Washingtold Wines & Vines. winesandvines.com ton, taxes account for just 6.3% of The report, prepared by Learn more: the economic impact of the state's Search keywords Frank, Rimerman + Co. of Sowine industry. "B.C. $2 billion." noma, Calif., was undertaken in On April 1 the sales tax payable conjunction with the Canadian Vintners on wine rose from 7% to 10%. Designed Association, the Winery & Grower Al- to keep alcohol prices stable when the govliance of Ontario, the British Columbia ernment changes how it levies sales taxes Wine Institute and the Winery Associa- across the board, consumers won't notice tion of Nova Scotia. the change—but producers will. The report indicates that B.C. represents "My $20 bottle of wine is less 12% taxabout a third of the Canadian wine in- es today, and on April 1 it's going to be dustry, second only to Ontario. (Ontario's less 15%. So that tax hurts," Raffan told wine industry has an impact of $3.3 bil- Wines & Vines. "It's unlikely our industry lion, close to half the $6.8 billion impact of is going to be able to pass that on." Canada's wine industry as a whole.) —Peter Mitham 14 w in eS & v i ne S M AY 2 0 1 3 and planning firm J.T. Atkins Co. PC, the plan includes an interpretive center, restaurants, winesandvines.com Learn more: Search keyword "Red Mountain." shops and galleries as well as upwards of 90 rooms at an inn and five to 10 wineries. The vision also includes a general store and shops intended to serve local wineries. The village will sit in the middle of a network of hiking, biking and equestrian trails that will take visitors from winery to winery. Wente builds new foundation S ince 1883, the Wente family has been making wine in California's Livermore Valley east of San Francisco. To mark the 130th anniversary, the family formally established the Wente Foundation for Arts Education (WFAE), which will be headed by fifth-generation winegrower Christine Wente. All proceeds from a limited edition 2011 red blend priced at $100 will be used to winesandvines.com Learn more: Search keyword "Wente Foundation." support the foundation, which will focus on funding music education during its first three years. wineries in west Sonoma County K osta Browne Wines is completing its new production facility at The Barlow, a nearly 94,000-square-foot development situated in an industrial park in the west Sonoma County town of Sebastopol, Calif. The de- winesandvines.com Learn more: Search keyword "The Barlow." velopment also will be home to Wind Gap Wines' new winery and tasting rooms for La Follette Wines, Marimar Estate Vineyards & Winery, Freeman Vineyard & Winery and MacPhail Family Wines.

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