Information about Appellation

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Canada

Canada overview
Wine is produced in Ontario and British Columbia, with Ontario (concentrated on the region near Niagara) accounting for about 85% of the total. Until the late 1980s quality was extremely poor, with most production from indigenous (labrusca) varieties for a captive local market. Imported wines were extremely expensive as the result of protectionism. When NAFTA (North American Free Trade Agreement) exposed the market to imported wines at more competitive prices, Canadian wine production came under pressure, resulting in significant improvement. Native labrusca vines are generally on the decline, although they still occupy as much as 50 per cent of the land and remain important for sparkling and dessert wine production. One variety, Concord, still accounts for more than 20 percent of all the vines cultivated. The best known wine is the ice wine produced in Niagara; more recently, international varieties have begun to have an impact in the Okanagan Valley in British Columbia. Canadian wines have a disproportionate share of the domestic market due to the monopoly situation, but the existence of a domestic industry does have the benefit of increasing awareness of wine and helping the market generally.

Wine in Canada: Ontario and Niagara
Ontario is on the same latitude as the Southern French vineyards of Provence and the Chianti hills of Tuscany in central Italy. The microclimate of Ontario has a moderating influence on temperature from Lakes Erie and Ontario, and the wind-break effect of the Niagara Escarpment, so the vines are protected from winter wind and frost damage. The vines are mostly grown on lakeside slopes sheltered by the Niagara Escarpment, and the better grape varieties are grown on the steep North-facing slopes. Soils cover a wide range from sandy loams to gravel and sand. Ontario would benefit from an appellation system in Niagara, where 94% of its vines grow. There are seven identifiable districts with differing geography, topography and microclimate. Lake Ontario is the major influence, storing massive amounts of heat and releasing it when the surrounding land and air temperature drops below its own. The lake shore vineyards are found in a strip of land some 40 km long. The moderating lake breeze retards the growing season in spring and mid-summer. In winter, the reverse happens, with warmth convected from the lake to the land. This protects the lake shore vineyards from the harshest effects of the bitterly cold Ontario winters and permits the growing of vinifera varieties. The flat plain between lake shore and escarpment is the largest geographical sector of Niagara stretching for 30 km from the Niagara river to Beamsville. This is the most intensively cultivated area. Some of the steep North-facing escarpment slopes in western Niagara are too steep to cultivate, but slopes of four to ten percent incline are prime sites for high-quality vinifera varieties. There is good air-drainage and summer temperatures are warmer than those in the lake shore vineyards. The area along the ridge of the escarpment includes all the highest points. Although it is generally suitable for vines, the risk of cold-damage is higher than in the preceding zones.

Ice wine in Canada
British Columbia and Ontario in Canada produce ice wine almost every year. In fact, Canada is the world's largest producer of ice wine. This represents 3-4% of the wine produced (by volume), but of course this is the most expensive of any wine produced and so accounts for a greater proportion by revenue. About a dozen Canadian wineries produce ice wine in what are large volumes relative to production in Europe. Magnotta Winery in Ontario produces >11,000 cases of ice wines a year; Inniskillin, with vineyards in British Columbia as well as in Ontario, produces 3,000 cases a year. The absence of planting restrictions enables production to be expanded in response to demand. There are strict standards for production (set by the VQA, the Vintners Quality Alliance which is Canada's Appellation of Origin system). The grapes need to be pressed while the air temperature is -8°C or lower (the same regulation as for Eiswein in Germany), and the concentration of dissolved solids in the must needs to be at least 35° Brix/ 150° Oechsle ( higher than for German eiswein and as high as for German Tröckenbeerenauslese). However, 80% of Canadian ice wine is made from Vidal, which is a hybrid grapevine (which does very well in cold weather). The wines are generally higher in alcohol than Austrian or German wines (at 10–11%), often with lower acidity and more exotic fruit, and more caramel, maple syrup flavors. They lack the elegance and finesse of the best German Riesling wines.

Canada: the liquor boards
Each Canadian state has a liquor board that is responsible for distribution and sales of alcoholic products. The model generally follows that of Sweden. Common features are reference pricing (to set a minimum floor price for a given wine in all stores), a distribution system that is based on sales quotas, with discounting at the supplier's expense occurring when a product does not meet its target, and a fixed set of sales lines that are replaced on a continuing basis, irrespective of vintage. The liquor boards have $8 billion in annual sales, with profits of $2.5 billion providing a powerful impetus for maintaining the system at the government level. Ontario is the largest of the liquor boards and has 600 stores that account for 50% of all alcohol sales and 100% of imported wines and spirits. Canadian wine has a disproportionate share of the market, being the largest supplier in both volume and value at one third of the market. In British Columbia, for example, total annual wine sales in 2005 were $216 million, with brands accounting for 30% of total sales, and with Canadian brands accounting for 14 of the top 20 and providing $47 million (70%) of their $66 million sales. Disadvantages of the monopoly are its large size and cumbersome nature and restrictions on choice; advantages are its reliability (good treatment of consumers and suppliers). Because of their buying power, monopolies can have a significant effect on the market; for example, The Ontario Liquor Board has announced a plan to reduce packaging waste in alcohol, which may lead to more purchases in formats other than glass bottles.