Wines & Vines

September 2016 Finance Issue

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September 2016 WINES&VINES 21 WINE INDUSTRY NEWS www.ivifho.de My wine deserves the best technology! Fresh ideas for winegrowers Hans-Peter Wöhrwag Wöhrwag Winery Stuttgart, Germany P enticton, B.C.—British Co- lumbia wineries voted to close ranks and tightly regulate the use of geographical indications. A recent poll of the 252 eligible wineries in the province saw 180 vintners representing 90% of the province's wine production con- sider 11 recommendations from the B.C. Wine Appellation Task Group convened in 2015 to consider struc- tural issues within the industry. Among the key issues at stake in the May 20-July 1 referendum were labeling and membership in the B.C. Wine Authority (BCWA), a body established by provincial statute in 2008 to oversee regula- tions governing the industry. Regulation was previously the purview of the B.C. Wine Institute (BCWI), which also was charged with advocacy and marketing. Some wineries considered this a conflict of interest and urged for a separation of the two functions. However, both the BCWI and the BCWA are voluntary organiza- tions. While wineries must belong to the BCWA in order to use one of the seven geographic indications (GIs) specified in legislation, nei- ther organization enjoys support from all wineries in the province. At the time of the plebiscite this summer, the BCWA claimed 174 member wineries, while 78 wineries were non-members. (Six years ago, there were 126 member wineries and just 17 non-members.) Now, thanks largely to the clout of BCWA members repre- senting approximately 94% of the province's wine production, non- member wineries (the majority of which voted against mandatory membership) will have to become authority members in order to continue operating. This will enforce a tighter dis- cipline within the industry—in- cluding a new provision restricting the use of GIs to wineries partici- pating in the B.C. Vintners' Quality Alliance program. The sole recommendation shot down in the vote was a proposal to identify any wine in the prov- ince as being from a specific geo- graphical area. W h i l e a m a j o r i t y o f wineries —144 to 36—voted in favor of allowing any winery in the province to use the designated GIs, BCWA members representing approximately 54% of the prov- ince's wine production rejected the proposal, ensuring more lim- ited usage of the GIs. This was backed up by approval for a ban on the use of unregulated GIs. Ezra Cipes, chair of the B.C. Wine Appellation Task Group, ex- pects discussions to continue w h i l e t h e p r o v i n c e d e c i d e s whether to implement the results of the industry vote. —Peter Mitham British Columbia Wineries Face Mandatory Membership B.C. WINE INDUSTRY PLEBICITE RESULTS Approve Reject Mandatory membership 125 55 Change "Wines of Distinction" to "British Columbia Wine" 158 22 BCVQA and Wines of Distinction can use geographical indications (GIs) on labels 144 36 Prohibit use of unregulated GIs 140 40 100% B.C. Grapes must be registered as BCVQA or British Columbia Wine 133 47 Mandatory conjunctive labeling 138 42 Establish four new GIs 165 15 Flat membership fee for small wineries 141 39

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