bc wine at 25, you've come a long way, baby

BC Wine You’ve come a long

way, Baby

Blue Mountain, OK Falls

Paul Rickett, February 2013

In the span of 10 years, Canada's wine consumption will have grown 6 times faster than the world average

Canada now ranks as the world's 5th biggest wine importing country

Between 2010 and 2014, wine sales volumes are expected to grow by a further 19% domestic wines will see a 26% increase, meaning that Canadians will consume 14.6 million cases of locally-produced wine

Wine #1Backyard Sparkling Pinot Noir

Langley, BC (FV DVA)4 years old100% Fraser Valley Pinot NoirMethode Champenoise

First Glimmerings...

First grapes in BC c. 1860s near KelownaFirst winery (fruit) 1918First hybrid wine grapes 1950sFirst plantings of vitis vinifera grapes 1970s

Nichol Vineyards, OK

The Fulcrum1988 FTA

BC Govt. subsidizes change over to Vitis Vinifera

Impacts c. 1,600 acres of grape planting (out of 2,400)

Forty Knots, Comox

25 Years of Progress

1988• 1,000 acres• 14 varietals• c. 10 wineries• Infinitessimal sales

201310,000 acres/750+ growers65+ varietals230 wineries (triple in last 10 years)BC wine is 19% of total wine sales in BC (steady since 2003). #2 wine category$200M in sales (up from $58M in 2002)3500+ people

Burrowing Owl

Wine Areas of BC

Port Alberni

Lillooet

Creston

...but we’re still small

23K tonnes

300K tonnes

160K tonnes

33K tonnes

Wine #2DeVine Vineyards Pinot Blanc

Vancouver Island2nd VintageWinery working towards certified Organic

... But grapes from Similkameem

FoodLight fish, seafood especially

Sub-Appellations

A BC Hot Topic

Climate and TerroirVary considerably over length of the OK Valley

Bi-Fold Market Concentration

Winery3 large wineries > 70K cases p.a.20 medium size wineries at > 10K cases

p.a.200 small with <10K cases p.a.

Grape Growing>90% grapes grown in Okanagan50% in Oliver area

Wine Econ 101

1 acre =

=

2-10 Tons Grapes

1ton makes 60 cases or 720 bottlles

BC average is c.2 tons acre

BC Wine – Value for Money?

Low Yield, boutique, high qualityInput Costs are High

Land cost pre-1990 - $2K/acrePeak OK prime land in 2008 - $120K/acreDeclined by 30-40% sinceLabour

TaxationSmall Govt. preference for BC

Sandhill Estate, Oliver

Labelling – More stringent than CA

Single Varietal – 85%Dual Varietal – 90% (15%)Triple varietal – 95% (10%)

Vintage – 85%Estate – 100% grownDVA – 95%VQA – 100% + taste testSulfites – “contains” from 2012

Single Varietal – 75%Multi-Varietal – no rulesVintage – 95%Estate – 100%AVA – 75%-85%Sulfites - > 10ppm

Not all 100% BC wines subscribe to VQA, not a legal requirement

Baillie Grohman, Creston

Check the Fine Print...

Not all wine marketed as BC is 100% BC contentA matter of much controversy in industry

X

The Winds of Legislative Change..

Most Canadians still buy under rules designed for Prohibition daysBill C311Provincial legislative change neededYou can add your voice to #FreeMyGrapes and #ModernizeWine

Wine #3Tinhorn Creek Cabernet Franc

Medium size producerAll Estate grownOliver Cab Franc

A star in the making?

Virtual Wineries

Okanagan Crush Pad Concrete Eggs

Next 25 years

BC consumption stableGrowth through exports beyond BC

Maintaining Reputation & QualityAvailable land and intensityFocus

The `Grape` DebateWine Tourism

Generation hand-overMission Hill, OK

“The majority of my favourite wines ....had come all the way from British Columbia in western Canada”

Jancis Robinson, January 2013

Last Words...