British Columbia (BC) is the third biggest provincial wine market in Canada. In 2017, 8.5 million cases of wine were sold in BC, compared to 18.3 million cases in Quebec and 15.5 million cases in Ontario.
By country of origin, Australia is the fourth largest supplier of imported wine to BC (with 526,000 cases) behind Canada, the United States of America (USA) and Italy (see figure 1).
Figure 1: Top five wine suppliers to British Columbia
Source: Canadian Vintners Association
British Columbia has a significant domestic wine sector, which is well-supported by local consumers. More than 80 per cent of the total vineyard acreage in the province is located in the Okanagan Valley, BC’s premier grapegrowing region.
There are two branches of government responsible for the alcohol beverage sector in BC.
The Liquor Control and Licensing Branch (LCLB) regulates restaurants, bars, pubs, liquor retailers, manufacturers and special events. LCLB supervises more than 10,000 licensed establishments and more than 25,000 licensed events per year in BC.
The Liquor Distribution Branch (LDB) has the sole right to purchase beverage alcohol both within BC and from outside the province. As the sole buyer and re-seller of liquor in the province’s mixed public-private model, the LDB is one of the largest liquor purchasers in the world. All imported wine landed in BC must be processed through the LDB’s monopoly wholesale distribution system.
At a consumer level, the LDB is one of the largest retailers in BC, with more than 40 million retail customer visits to the198 BC liquor stores annually. The LDB also supplies product to more than 10,000 bars, restaurants and private retailers.
How Australian wine is performing
The BC Liquor Store website provides some good insights into the Australian wine category in BC.
While Australia is ranked fourth in sales, it ranks fifth in the number of wines available online. As of February 2018, there were 240 Australian wines available behind France (1085), Italy (516), Canada (485), and the USA (387) and almost double the Chilean offering (127).
Red wines dominate Australia’s listings in BC with an almost three-quarter share. Shiraz and Cabernet Sauvignon are the major red varieties. The major whites are Chardonnay and Pinot Gris/Grigio.
Figure 2: Australian listings by wine style
Australian wines are more heavily weighted to the $10–19.99 per bottle price segment than the total market (see figure 3). While one-third of all wines are listed at $10–19.99, more than half of Australian wines are listed at this price point. On the other hand, Australian wines are significantly under-represented at $50 and above segment. Of the 1091 wines listed at $50 and above, only 26 are Australian.
Figure 3: BC Liquor Store share of listings by price point
Source: BC Liquor Stores
Growing Australia’s premium wine presence
Wine Australia is focused on growing Australia’s premium wine presence in BC. A key platform in the province is the Vancouver International Wine Festival, which is being held this week (February 24 – March 4).
The Vancouver International Wine Festival is one of the largest consumer wine festivals in North America. There are 50–55 events that take place over 7 days with 15 countries, 1,750 wines and more than 175 wineries represented on average.
There are lunches, brunches, dinners, seminars, boardroom tastings, grazing events, late night parties and 6 sessions of the International Festival Tasting (grand tasting room) with all participating wineries present and a proprietary theme region section of 50–70 host-country wineries.
Wine Australia’s tasting station will be unlike any other booth in the room. The branded station will have a distinct theme and design and be a place for education through teaching while tasting as well as take-away materials.
For more information on the BC wine market contact Wine Australia’s Americas team at usa@wineaustralia.com