Wines & Vines

August 2017 Closures Issue

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18 WINES&VINES August 2017 WINE INDUSTRY NEWS O ttawa, Ontario—A long- running battle over how Canada's major vintners label wines bottled in Canada from a blend of imported and do- mestic juice is a centimeter closer to a conclusion. A survey the Canadian Food Inspection Agency (CFIA) con- ducted throughout June promises to usher in final approval of new wording that will clearly identify what is (and isn't) a domestic wine. CFIA sought feedback on a new rule that would replace the existing "Cellared in Canada" des- ignation with "International blend from imported and domestic wines" for wines made primarily with imported juice, and "Interna- tional blend from domestic and imported wines" for those made primarily with domestic juice. According to a study St. Hel- ena, Calif.-based Frank, Rimer- man & Co. LLP produced earlier this year for the Canadian Vint- ners Association, Canadians drink 1.2 billion glasses of "Canadian" wine each year. Of those, 985 mil- lion glasses are domestic and international blends. Compara- tively, just 251 million glasses' worth of wine are from 100% grapes grown in Canada. The blends sell for less than $10 per bottle Canadian (about $7.50 U.S.), and at that price many in the industry don't think most buyers are reading the labels carefully enough to know what's in the wine. However, few people want those wines identified with Canada, which is working hard to highlight the award-winning work of its premium producers. "People that are drinking pre- mium wines are very interested in appellation. People that are drinking under a $10 price point aren't," said Dan Paszkowski, president and CEO of the Cana- dian Vintners Association. "How important this is becomes is a good question. I think for con- sumers of 100% Canadian wines and producers of 100% Cana- dian wines, this adds that addi- tional clarity." "CFIA has heard that the state- ment 'Cellared in Canada' is not informative and potentially mis- leading to consumers," the federal agency explained in preface to the online survey that ran June 1-30. The survey simply asked respon- dents to say whether or not they're in favor of the change. "These statements are intended to pro- vide consumers with the informa- t i o n t h e y n e e d t o m a k e a n informed purchasing decision." CFIA staff told Wines & Vines that it expects to release survey results, including a summary re- port of all comments received, by the end of July. Its labeling- modernization initiative wraps up in 2018. —Peter Mitham Debate Over Wine Labeling Continues in Canada PROVINCIAL WINERY REVENUES BY TYPE 100% Domestic International Blends Total British Columbia $199,758,000 $161,103,000 $360,861,000 Ontario $262,549,000 $300,393,000 $562,942,000 Quebec $19,677,000 $141,199,000 $160,876,000 Nova Scotia $16,352,000 $18,617,000 $34,969,000 Rest of Canada $21,557,000 $100,333,000 $121,890,000 Canada $519,893,000 $721,645,000 $1,241,538,000 Source: Frank, Rimerman & Co. LLP

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