Opportunities in the successful Canadian market

A recent news article from Canada reports that wine is now available for sale in grocery stores in Ontario. This is positive news for Australia, which is the fourth largest source of imported wine by value in Canada behind France, the US and Italy.  According to Canadian newspaper The Globe and Mail, a change to regulations means that wine is now available in 67 grocery stores across Ontario – and this number is expected to grow to 300 according to the government. While a minimum amount of shelf space must be reserved for local producers, this would still seem to be good news for all suppliers of wine into the Canadian market.

Wine Australia’s latest Import Report for Canada shows that the total size of the Canadian market for imported wine for the year ended June 2016 was A$1.8 billion, with Australia accounting for approximately 10 per cent (source: Global Trade Atlas). When combined, Ontario and Quebec account for 65 per cent of Canada’s wine market (30 and 35 per cent respectively). Canada’s next largest wine markets are British Columbia (16 per cent) and Alberta (10 per cent).   

According to Wine Australia’s recently released Export Market Snapshot for Canada – and the more detailed Export Report – in the 12 months to September 2016, Australian exports to Canada increased by 1 per cent in value to A$190 million. The average value increased by 3 per cent to A$3.13 per litre, continuing an upward trend that has been evident over the last 2 years, while the average value of bottled exports grew by 5 per cent to A$5.63 per litre – its highest level since January 2009. There was growth in most price points, with the A$10 and above category increasing by 9 per cent to A$25 million.

Canada is Australia’s number one market by value for white wines above A$5 per litre. This market increased by 11 per cent to A$23 million in the 12 months to September 2016.