Annual Report 2016-2017 - Canadian Vintners Association€¦ · Canadian Vintners Association...

Annual Report 2016-2017

Canadian Vintners Association Annual Report 2016-2017 2

Table of Contents

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CVA initiatives in support of Canadian winery success and prosperity

All Canadian wineries and stakeholders are encouraged to share information on Canada’s Low‐Risk Drinking Guidelines (LRDG). CVA has developed the websites winemoderation.ca and vinmoderee.ca to provide consistent, wine‐specific LRDG information to the public. We strongly encourage your business to include a link to these sites from your website and social media pages (custom images and buttons are available from CVA).


The past year was very busy for the Canadian Vintners Association, as it continues to work hard to push forward the issues of critical importance to the Canadian wine industry. In an industry where there are often diverse interests, the CVA has worked hard to create unity and strives for consensus within the industry at all opportunities. Of primary importance was addressing how wine blended and bottled in Canada is labelled. An issue that has impassioned some for many years, the consultation that the CVA coordinated and facilitated has now resulted in a new designation “International blend from imported and domestic wines” under review by the Canadian Food Inspection Agency for implementation. I am proud to say that the CVA has experienced its largest ever growth in membership this past year, with 11 members joining in both in the winery and associate category. Many strategic objectives were addressed over the past year. Some of the highlights for 2016‐17 include:

• Completion of the 2nd Canadian Wine Economic Impact study;

• Approval of the VQA Canada Guidance Document to support the establishment of an inclusive national VQA system that reflects individual appellation regions;

• Launch of the Wine Industry Innovation Program (WIIP) proposal to support private capital winery investment;

• Engagement in numerous federal policy discussions including Seasonal Agricultural Workers Program, CFIA Food Label Modernization consultations, Health Canada Food Guide consultations, AAFC Value‐Added Agriculture Roundtable, Chief Medical Officer Report on Alcohol and Health;

• Ratification of the World Wine Trade Group (WWTG) Agreement on Information Exchange, Technical Cooperation and Counterfeiting;

• Coordination of the Wines of Canada pavilion with regional associations at ProWein with 22 participating exhibitors, representing 25 wineries;

• Coordination of the Wines of Canada presence as theme country at the Vancouver International Wine Festival (76 participating wineries); and

• Active engagement with liquor boards on policy issues in Alberta, Saskatchewan and Nova Scotia.

We have an outstanding Board of Directors, volunteer committees, and a very talented team led by Dan Paszkowski, and supported by Asha Hingorani, Caroline Henderson, Elisa Ruiz and Lorraine Yorke. It was a great pleasure and privilege for me to serve as your Chair. My appreciation for the power of the CVA network continues to grow as we make every effort to building a strong and competitive economic environment for the Canadian wine industry.


The past year has been extremely busy, and it is hard to remember a year where more has happened. The CVA co‐chaired the World Wine Trade Group (WWTG) and hosted both the FIVS and the APEC Wine Regulatory Forum in Canada, while working with the new Liberal government, which continues to reshape the domestic and international agenda. At home Canadians witnessed federal‐provincial and territorial governments finalize the framework for a new Canada Free Trade Agreement, which will include the launch of a beverage alcohol working group to discuss interprovincial trade. In addition, New Brunswick referred its provincial court ruling on the interprovincial movement of beer to the Supreme Court. Both of these efforts could help remove interprovincial barriers and allow winery to consumer delivery across provincial borders, an effort which the CVA has led since 2006. To address concerns with “Cellared in Canada” labelling, CVA organized one‐to‐one interviews with wineries and retailers across Canada, and facilitated industry roundtables in Eastern and Western Canada. The result of this process was a recommendation to change the labelling designation of wines blended in Canada from "Cellared in Canada" to "International blend from imported and domestic wines". We remain hopeful that the new labels will be approved by the Canadian Food Inspection Agency (CFIA) in fall 2017. Internationally, Canada signed the historic CETA agreement with Europe which will see import tariffs removed on wine imports and open new markets to Canadian wineries, while our closest trading partner elected a new president. This has brought much uncertainty about the future of Canada’s relationship with the U.S., and the prospect of renegotiating and modernizing the North American Free Trade Agreement (NAFTA). The U.S., also launched a WTO consultation on wine sales in BC grocery. The CVA has remained a strong national voice on all fronts, advocating the priorities of the Canadian wine industry from coast to coast. The Prime Minister’s Economic Growth Advisory Council acknowledged the agri‐food sector as a Canadian priority in global excellence and innovation. To meet the governments focus on innovation, the CVA developed and launched its Wine Industry Innovation Program (WIIP) proposal to support investment in wineries across Canada, and help wineries adjust to the new global competitive reality. As you will see in this report, our work over the years continues to pay dividends. Our newly released economic study has confirmed that the past four years has seen our industry grow from $6.8 to $9.0 billion. With WIIP, we believe we can grow the wine and grape industry to $16 billion, creating 15,000 jobs by 2022. As we look towards the future, we will have to deal with a new US administration, lower US taxes, the risk of higher domestic excise duties, implementation of CETA, renegotiation of NAFTA, and the risk of a WTO challenge. We will also have to dedicate resources to continue our fight for the removal of inter‐provincial barriers to trade.


Photo courtesy of John Peller

This past year the CVA has seen a number of staff changes. Following almost four years of dedicated effort, we were sad to see CVA Vice President Beth McMahon depart to pursue a new career opportunity. Beth’s guidance and contributions will live on, as we welcome Asha Hingorani, Director of Government and Public Affairs, and Caroline Henderson, Manager of Programs and Regulatory Affairs into the CVA family. Let me finish by thanking our membership, staff, board of directors and regional associations for your dedication and determination to continually strengthen the CVA network. We look forward to a very exciting 2017‐18, and will work hard to meet and exceed expectations as we seize new opportunities to grow our domestic and international markets. Canadian Wine Institute Board of Directors circa 1968


The Canadian Vintners Association (CVA) has represented small, medium and large grape wineries across Canada for fifty years. CVA member wineries are responsible for more than 90% of the wine produced and sold in Canadian and international markets and are engaged in the entire value chain, from grape growing, farm management and grape harvesting, to wine production, research, bottling, retail sales and tourism. CVA brings together our members, including the British Columbia Wine Institute, the Winery & Grower Alliance of Ontario and the Winery Association of Nova Scotia, to advocate on public policy initiatives by working cooperatively with the federal government, international bodies and other stakeholders to find solutions that benefit both society and the entire Canadian wine industry. CVA strives to meet the business needs and interests of its members by ensuring the establishment of policies, regulations, rules and an economic framework which allows the domestic and international business environment for Canadian wines to be as competitive, barrier free and supportive as possible.

Our Vision An inclusive, accessible, knowledgeable and responsive organization committed to sustainable domestic and international success

for the Canadian wine industry.

Our Mission To provide focused national leadership and strategic coherence to enable domestic and international success for the Canadian wine industry.

We place our members at the core of all we do. Our members are the reason for our existence. We appreciate and are inclusive of all scales of production, providing a unifying voice for the Canadian wine industry. We provide respect, professionalism and responsiveness to each member. We encourage member participation and leadership in our organization. We are committed to our industry. We are respected for our strategic, forward‐looking transparent leadership that supports a successful Canadian wine industry, domestically and abroad. We believe that a unified approach of working together drives high levels of engagement, and is essential to our continued success. We operate ethically. We hold ourselves and our association to high standards of honesty, integrity and social responsibility. We are both individually and collectively accountable and responsible. We strive continually to improve. We are a learning organization that aims to anticipate and respond to changing member, employee and operational needs through constant evolution, assessment and innovation. It is through our dynamism that excellence is achieved.

Original Canadian Wine Institute 1967 Logo


The Canadian Vintners Association (CVA) Board of Directors are committed to ethical, accountable and

legal conduct in all areas of its responsibilities and authority.

Greg Berti Andrew Peller Ltd.

Paul‐André Bosc Château des Charmes Wines

Ezra Cipes Summerhill Pyramid Winery

Jim Clark Colio Estate Wines Ltd.

Aaron Dobbin* Winery & Grower Alliance of Ontario

Caroline Granger The Grange of Prince Edward Vineyards & Estate Winery

Robert Heiss Gray Monk Winery

Tommaso Magnotta Magnotta Winery Corporation

Gillian Mainguy* Winery Association of Nova Scotia

Christa‐Lee McWatters Bond ENCORE Vineyards

Dan Paszkowski* Canadian Vintners Association

David Paterson Tantalus Vineyards

John Peller Andrew Peller Ltd.

Miles Prodan* British Columbia Wine Institute

Allan Schmidt Vineland Estates Winery

Carl Sparkes Devonian Coast Wineries Ltd.

Murray Souter Diamond Estates Wines & Spirits

Tony Stewart Quails’ Gate Winery

Sean Taylor Constellation Brands Canada

Josie Tyabji Constellation Brands Canada

Dave Wilson Mark Anthony Group

Jay Wright Constellation Brands Canada

*Officers

Dan Paszkowski President & CEO

Asha Hingorani Director, Government and Public Affairs

Caroline Henderson Manager, Programs and Regulatory Affairs

Elisa Ruiz Office Manager

Lorraine Yorke Financial Manager


Over the past year, CVA has been active on many files, both domestic and international. We are proud of our many achievements and pleased to share with you some of the highlights of our activities from 2016/2017: Market Development

Continued efforts to support the elimination of interprovincial barriers to trade to allow direct wine delivery across provinces, including:

o Witness at the Senate Committee on Banking, Trade and Commerce which recommended that goods and services should be able to cross provincial boundaries freely and without penalty

o Ongoing engagement with federal government on the launch of the Federal‐Provincial Beverage Alcohol Working Group

o Support Canadian Constitutional Foundation on the Supreme Court of Canada hearing of the Comeau case

Engagement with federal government regarding the renegotiation and modernization of NAFTA

Co‐chaired the World Wine Trade Group (WWTG) with Global Affairs Canada, resulting in a significant agreement to combat wine counterfeiting

Coordinated the Wines of Canada pavilion with regional associations at ProWein 2017, with 22 exhibitors, representing 25 wineries

Coordinated the Wines of Canada pavilion, as theme country, for the 2017 Vancouver International Wine Festival, attended by 76 Canadian wineries (the largest ever Canadian contingent at the show)

Creation of a new Wines of Canada Committee, to provide advice on brand development, marketing and market development

Launched Wines of Canada website in February 2017 (winesofcanada.ca)

Removal of barriers to trade through participation in the World Wine Trade Group, FIVS and APEC Regulators Forum, including the creation of a model export certificate to limit paperwork requirements for Canadian wineries exporting to Asia

Engaged with provincial liquor boards in Alberta, Saskatchewan and Nova Scotia on liquor board taxation, regulation and/or policy reviews

Approval of the VQA Canada Guidance Document to support the establishment of an inclusive national VQA system that reflects individual appellation regions

Reached industry consensus on a new label designation for Cellared in Canada wines (under review by CFIA)


Supporting the Industry and Membership

Released an updated economic impact study, which reported the industry has grown from $6.8 billion to $9 billion in its contribution to the Canadian economy between 2011 and 2015

Organized the 10th “Vintners Day on the Hill”

Held 3 meetings of the Canadian Wine Parliamentary Caucus, facilitating members’ improved knowledge of the Canadian wine industry, and increasing the number of advocates we have within parliament

Worked with government to ensure changes in the regulatory and policy framework are fully understood including:

CVA policy views on all aspects of wine labelling addressed with CFIA and Health Canada

CFIA Food Label Modernization consultations/workshops

Health Canada Food Guide consultations

AAFC Value‐Added Agriculture Roundtable

Chief Medical Officer Report on Alcohol and Health

Membership of the CVA has expanded, with 9 new winery members and 2 new associate members

Promoted national leadership in the Canadian wine industry through the Canadian Wine Industry Awards – 2016 Award recipients Donald Triggs and Shirley‐Ann George

Supported Cool Climate Oenology and Viticulture Institute (CCOVI) at Brock University’s successful bid to host the 10th International Cool Climate Wine Symposium (ICCWS) in 2020

Developed the Wine Industry Innovation Program (WIIP) proposal to help support investment in every winery across Canada

Supported social responsibility within the industry, including participation in the National Alcohol Strategy Advisory Committee (NASAC), chairing the FIVS Social Responsibility Committee and membership on International Association of Responsible Drinking (IARC)

Continued to support and participate in semi‐annual Canadian Association of Liquor Jurisdictions meetings, as well as meetings of the National Quality Assurance Committee and will sit on the newly formed Technical Standards Sub‐Committee

Updated and improved sales statistics information Social Media

@CVAwine Twitter followers have grown to over 1,900 (up 9% from last year)

Facebook.com/CVAwine now has over 629 likes (up 8% from last year) CVA website received over 46,500 page views from almost over 15,000 users CVA’s social responsibility websites, Winemoderation.ca and vinmoderee.ca, have

received over 8,500 page views (up 7% from last year) from almost 6,000 users


In March 2017, commissioned by the Canadian Vintners Association, the Winery & Grower

Alliance of Ontario, the British Columbia Wine Institute and the Winery Association of Nova

Scotia, the report Canada’s Wine Economy – Ripe Robust Remarkable confirms the wine

industry has become a large and significant contributor to the overall Canadian economy, up

33% from $6.8 billion to $9 Billion over the period of 2011‐2015.

Canadian winemakers support a broad network of related industries in rural and regional

centers across Canada through significant investments, long‐term jobs and market

opportunities in rural communities.

Quick Facts:

The Canadian wine and grape industry contributed to the Canadian economy business

revenue of $6.2 billion, tax revenues of $1.1 billion and wages of over $1.7 billion

An average bottle of wine produced in Canada generates approximately $36.54 of

domestic economic impact

Canadians enjoy more than 1.2 billion glasses or 247 million bottles of wine produced by

the Canadian wine industry each year

Canada welcomes over 3.7 million visitors every year through the wine economy

The Canadian wine industry generates $1.5 billion in tourism and tourism employment

related economic impact

There were approximately 1,770 grape growers operating in Canada with a combined

acreage of 31,100 grape‐bearing acres


CVA and Global Affairs Canada co‐chaired the World Wine Trade Group in 2016‐17. In October 2016, CVA welcomed delegates to the annual meeting of the World Wine Trade Group in Ottawa. While Canada was at the helm of the group, the Arrangement on Information Exchange, Technical Cooperation and Counterfeiting was signed by 7 countries, which will help curb wine counterfeiting internationally. L‐R: CVA President Dan Paszkowski exchanges with Minister Lawrence MacAulay; Alex Vincic signs the counterfeiting agreement on behalf of the Government of Canada; Dan Albas MP, CVA’s Beth McMahon and Vance Badawey MP discuss international wine trade at the Ottawa meeting.

CVA Canadian Wine Industry Awards and BCWI Awards Winners (2016) L‐R: Christa‐Lee Bond, Donald Triggs (CVA winner), John Schreiner (BCWI winner), Shirley‐Ann George (CVA winner), Dan Paszkowski and Tony Stewart (BCWI winner).

CVA held its annual Vintners Day on the Hill on

May 10. Above: Board of Directors meets with

winery MPs, including Denis Paradis MP, Dean

Allison MP and Ruth Ellen Brosseau MP.


CVA’s Asha Hingorani meets John

McCallum, Canada’s Ambassador to

China, on a fact‐finding mission to

China.

A total of 25 wineries were represented in the Wines of Canada pavilion at ProWein (Dusseldorf, Germany) in March 2017.

Wines of Canada was theme country at

Vancouver International Wine Festival.

Above: One of our sold out seminars.

A Wines of Canada Masterclass at the International Cool

Climate Wine Symposium in 2016, prior to announcement

Canada would host the event in 2020.

Canadian Modern Wine History – At a glance

Wines of Canada brand launched

Canadian government creates new national standard for Icewine

VQA Canada™ transferred to CVA

BC Wine Authority created

Nova Scotia Grape Wine Standards

Winery Association of Nova Scotia created

CWI changes name to Canadian Vintners Association (CVA)

Inniskillin receives first new ON winery license in almost 50 years

Canadian Wine Institute (CWI) created

BC Wine Institute created

Grand Pre Winery begins commercial operations in Nova Scotia

VQA appellation created in BC

VQA program launched in ON

1st commercial Icewine produced by Okanagan’s Hainle

Quebec wine certification launched - Vins certifiés du Québec

Winery & Grower Alliance of Ontario created

FreeMyGrapes campaign launched

Wine Marketing Association of Ontario created

Canadian government amends 1927 federal legislation so provinces can allow direct delivery

CVA successful in exempting 100% Canadian wineries from excise tax

Canada EU Wine and Spirits Agreement

Wine Council of Ontario created

Europe opens market to Canadian Icewine

Ontario government legislates VQA

Canada-US Free Trade Agreement came into force

BC government creates estate winery licencing

CVA partnership with BlackSquare to create first ever industry led winery listing WINE411

2016

2014

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2010

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1978

Defining Moments


AWARDS Chair: Tony Stewart, Quails’ Gate Winery Our Awards Committee initiates the preparation of national wine industry awards, nominations processes and facilitates the selection of annual award recipients. HACCP/FOOD SAFETY TECHNICAL Chair: Caroline Henderson, Canadian Vintners Association Our HACCP/Food Safety Technical Committee is composed of representatives from small, medium and large wineries with a specialized knowledge and experience in winemaking and quality control. The committee identifies and monitors issues of importance to the wine industry, maintains and updates a wine safety toolkit and required knowledge exchange materials and raises issues with policy makers and liquor retailers to support the needs of the Canadian wine industry. INTERNATIONAL TRADE Chair: Peter Wille, Quails’ Gate Winery Our International Trade and Export Committee leads our efforts on international policy issues. The committee reviews trade and export developments, makes recommendations on market access and trade policy positions to the federal government and works with the Wines of Canada Committee on the development of the national export strategy. NOMINATIONS Chair: Tony Stewart, Quails’ Gate Winery Our Nomination Committee reviews board composition in advance of each Annual General Meeting. The committee, which is comprised of members of the Executive, identifies potential candidates for the board slate and seeks confirmation of their interest to stand for election. The committee is responsible for ensuring that nominations and board composition are compliant with CVA by‐laws. TAXATION Chair: Sean Taylor, Constellation Brands Canada Our Taxation Committee provides advice and direction on taxation matters, with a present focus on wine excise duty. The committee makes policy recommendations, reviews and provides input to briefs and submissions and support government advocacy. VINTNERS QUALITY ALLIANCE (VQA) Chair: Bob Heiss, Gray Monk Estate Winery Our VQA Committee monitors and enforces domestic and international developments that could affect our intellectual property rights. WINE INDUSTRY Chair: Dan Paszkowski, Canadian Vintners Association Our Wine Industry Committee is composed of executive representatives from wine industry associations across Canada with knowledge of marketing, economic and regulatory issues. The committee identifies, monitors and provides input on issues of common interest across the wine business.

WINES OF CANADA Chair: Danielle Giroux, Colio Estate Wines Our Wines of Canada Committee provides advice and direction on opportunities to grow Canadian wine

sales in both domestic and international markets through strategic advice and development of a

progressive marketing approach.


BRITISH COLUMBIA Blasted Church Vineyards Burrowing Owl Vineyards Calona Wines Cassini Cellars CedarCreek

Estate Winery Checkmate Artisanal Winery Clos du Soleil Winery Culmina Family Estate Winery

Dirty Laundry Vineyard ENCORE Vineyards Ltd. Evolve Cellars Fort Berens Family

Estate Winery Gray Monk Estate Winery Hester Creek Estate Winery Inniskillin

Okanagan Estate Jackson‐Triggs Okanagan Estate JoieFarm Wines Lulu Island

Winery Mark Anthony Group Mission Hill Family Estate Winery Monte Creek

Ranch Winery Nk’Mip Cellars Okanagan Crush Pad Winery Painted Rock Estate

Winery Peller Estates Winery Perseus Winery Poplar Grove Winery Quails’ Gate

Winery Red Rooster Winery Sandhill Wines See Ya Later Ranch Sumac Ridge

Estate Winery Summerhill Pyramid Winery Tantalus Vineyards Terrabella Wineries

Ltd. The Hatch Winery TIME Estate Winery Tinhorn Creek Vineyards Wild Goose

Vineyards

ONTARIO Andrew Peller Ltd. Cave Spring Cellars Château des Charmes Wines Colio Estate

Wines Constellation Brands Canada Creekside Estate Winery Dan Aykroyd Winery

De Sousa Wine Cellars Diamond Estates – The Winery Diamond Estates Wines &

Spirits Fielding Estate Winery Flat Rock Cellars Henry of Pelham Family Estate

Winery Hernder Estate Wines Inniskillin Niagara Winery Jackson‐Triggs Niagara

Estate Kacaba Vineyards Magnotta Winery Malivoire Wine Company Mike Weir

Wine Pelee Island Winery Pelee Island Winery‐The Pavillion Peller Estates Winery Peninsula Ridge

Estates Winery Pillitteri Estates Winery Redstone Winery Reif Estate Winery Southbrook

Vineyards Stratus Vineyards Strewn Winery Tawse Winery The Grange of Prince Edward Vineyards

& Estate Winery Thirty Bench Wine Makers Trius Winery at Hillebrand Vineland Estates Winery

QUEBEC NOVA SCOTIA Domaine du Ridge Vignoble CARONE Wines

L’Acadie Vineyards Benjamin Bridge Devonian

Coast Wine Eileanan Breagha Vineyards

Gaspereau Vineyards Jost Vineyards

ASSOCIATION MEMBERS British Columbia Wine Institute Winery Association of Nova Scotia Winery & Grower Alliance of

Ontario

ASSOCIATE MEMBERS Brock University’s Cool Climate Oenology and Viticulture Institute (CCOVI) MNP Okanagan College

Overwaite Food Group TricorBraun WinePak VineTech Canada Wells Fargo Canada

1968 Members: Abbey Wines Andrés Wines Anjo Wines Barnes Wines Beau Chatel Wines T.G. Bright & Co. Castle Wines Chateau‐Gai Wines Growers’ Wine Co. Jordan Wines London Winery Normandie Wines The Parkdale Wines Turner Wine Villa Wines


The CVA provides the Canadian wine industry with national leadership and is consistently recognized as the national voice of the Canadian wine industry. The CVA’s vision is to be an inclusive, accessible, knowledgeable and responsive organization committed to sustainable domestic and international success for the Canadian wine industry. In order to create a strong Canadian wine industry and a positive business environment, CVA must be the united voice that speaks for the industry, and must foster a high level of unity and trust among its membership and present a unified position when communicating with the public, government or regulators on industry issues. In recognition of this goal, we, the Members of the CVA, acknowledge the need for professionalism and to respect our relationships with each other. We affirm that membership in the CVA is important to us and that our company(s)/association will uphold the following principles:

We will strive to uphold the CVA high standards of credibility, integrity and achievements.

We will maintain, at all times, the best interests of the Canadian wine industry, inclusive of all winery sizes, wine products (Product of Canada, VQA, International‐Canadian Blended wines), and wine producing regions.

We will relate to other members of CVA with integrity, and in a manner that will enhance the stature of the Canadian wine industry.

We will not impugn the reputation or business of others. By upholding these principles, we will create a strong Canadian wine industry better able to serve the needs of our members.

MEMBER LOGOS: CVA has created

new member logos for our winery and

association members. We encourage

you to use the logo with pride on your

website and in print materials,

promoting your company and CVA. To

request design files or specific formats,

please contact

[email protected]


CANADIAN EXPORTS OF WINE – TOP TEN MARKETS BY VALUE (2016)

CANADIAN IMPORTS OF WINE – TOP TEN MARKETS BY VALUE (2016)


DOMESTIC MARKET

CANADA (sales by volume and market share)

BRITISH COLUMBIA (sales by volume and market share)

ALBERTA (sales by volume and market share)


SASKATCHEWAN (sales by volume and market share)

MANITOBA (sales by volume and market share)

ONTARIO (sales by volume and market share)


QUEBEC (sales by volume and market share)

NEW BRUNSWICK (sales by volume and market share)

NOVA SCOTIA (sales by volume and market share)


NEWFOUNDLAND & LABRADOR (sales by volume and market share)

PRINCE EDWARD ISLAND (sales by volume and market share)

NUNAVUT (sales by volume and market share)


NORTHWEST TERRITORIES (sales by volume and market share)

YUKON (sales by volume and market share)

Annual Report 2016-2017 - Canadian Vintners Association€¦ · Canadian Vintners Association...

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