by BETTER FARMING STAFF
In a letter to the St. Catharines Standard, Wiley wrote that the group was formed in 2004 "with the best of intentions."
"They recognized that the precariousness of the grape industry for many growers might be changed. This attempted change came in the form of starting a winery. The winery created was a successful brand. The winery has failed financially."
In a telephone interview, Wiley hinted that the winery's failure had to do with systemic problems within the province's grape industry.
"The more you know about this industry, the more depressing it is," he said.
The winery's products got its name from the involvement of the 19 growers and one wine maker.
Initially the venture's future looked bright, having established nine product listings with the LCBO (Liquor Control Board of Ontario).
In 2007, it garnered the LCBO Elsie award for VQA excellence and a regional Premier's award for agri-food innovation. The regional award recognized the venture as "a first for Ontario" which distributed product through the provinceís 780 LCBO stores and for creating "several jobs" in the Niagara region.
But by February, the company whose book value was nearly $33 million owed nearly $40 million to secured and unsecured creditors, court documents show.
Jacquie d'Eon, a spokesperson for Deloitte & Touche, said the company is being offered for sale. April 14 is the closing date for offers.
She declined comment on whether there had been any expressions of interest in buying the company.
If no sellers come forward, the business will be declared bankrupt and "then sold in available chunks," said díEon.
Wiley, who sold a significant portion of his grapes to the company, said he wasn't sure what his next step would be.
He noted that at one time he sold grapes to Vincor, Canada's largest producer and marketer of wine and related products, but Vincor had let him go after he became involved with the Niagara Vintners. BF
Comments
"Intentions" were appropriate. The winery construction unfolded to fruition in time and matched the size of harvest it was to accomodate.
With nine listings at the LCBO and an approved display effort in place, this state of the art production facility on thirty acres needs to fetch that $45million-plus buyer in that particular location. Its not really that outrageous considering what winery equipment costs. Our agricultural sector needs this innovation, needs those jobs.
O.k. so growing pains hit faster with a rapid startup process. In the fast spoolup to production this effort made it to the starting line while accomodating all those farmers. "Depressing" is understandable when tasting instability of this magnitude in the dark days of January and February. Yet even the stiffest local critics can admit that this group effort couldn't have been executed in a wiser manner.
Peter D Wiens
Niagara on the Lake
With the high mark up given to a high demand product such as Ice Wine there must be something us other farmers are missing if this company can't make it financially. That doesn't seem real when this Canadian Success Story has never even been tried in 99% of Canada's households.
Let's work on defending our markets a little.
Ontario Farmer
Jobs for that venture are estimated at one hundred full time and three hundred seasonal, according to a recent news article. If this is true, it still may turn out to have been a worthwhile marketing effort provided the Receivers discover the way to salvage the setup successfully.
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