Grape growers fear support of Ontario grown comes too late

by SARAH VAN ENGELEN

The Wine Council of Ontario October decision to support only wine made with 100 per cent Ontario grapes will increase shelf space at the province’s LCBO stores. But the marketing strategy isn’t enough to keep struggling wineries from closing their doors, say some growers.

Proposed changes would result in the wine council dropping its promotional support of Cellared in Canada wines, which are made from a blend of imported and domestic wine. At least 30 per cent of the grapes used to make Cellared wine must come from Canada.

John Neufeld, who runs Palatine Hills Estate Winery, Niagara-on-the-Lake, says one of the proposed changes, to be voted on this month and take effect in April, is to impose an additional 10 per cent tax on the Cellared wines. The tax will be used to market Vintners Quality Alliance (VQA) wines, which are made from Ontario grapes.

“Hopefully, if everything if followed through, I’ll get better access to the LCBO and more opportunity to sell wine with the shelf space they are promising,” says Neufeld.

Neufeld says he is expanding to meet an anticipated increase in demand in VQA wines at the LCBO. He hopes by next May his wine will be in regular inventory at liquor store chain.

But people are fairly concerned with meeting the LCBO’s future demands, he says, explaining that because VQA hasn’t been promoted or sold, wine production has decreased and a surplus of grapes I occurring.

Beamsville winemaker Steven Kocsis says that last year there was a 4,000 metric tonne surplus in grapes; this year the surplus grew to 9,000. Kocsis says with no bailout provided this year from the government, many small wineries are struggling.

“New York imports grapes for wine production,” says Kocsis, “but only after they have used up all the grapes grown in state.” Kocsis feels that Ontario should do the same.

Kocsis says that it isn’t enough to have the wine council support VQA – he would prefer to see a chain of stores dedicated solely to selling VQA wines as there is in British Columbia. He says the chain is so successful there that it has doubled the value of vineyards.

In Ontario, vineyards are going bankrupt. Kocsis, who is also a real estate agent, says the number of grape farms for sale has increased at least tenfold, but there has not been any sold in the past nine months. He says it’s difficult to see a farm that produces a commodity that no one wants to buy and is having to decline farmers who want him to see their farm.

Wince Council of Ontario President Hillary Dawson says that another item on debate is the CIC content and that the Ministry of Consumer Services may allow Cellared wine to contain 100 per cent imported wine by 2014. Kocsis says that if this is approved, clearer labels are needed to indicated that Cellared wines are not local and do not contain any Canadian wine.

Donald Ziraldo, one of the founders of VQA, says promoting VQA is finally a focus of the wine council’s that fits in with the local food movement. As Vineland Research and Innovation Centre Chair, he wants to see money spent on research as well as marketing.

“Research can help growers grow better quality grapes and produce better wine,” says Ziraldo. BF