Some people have been asking me about my opinion of the new Canada European Trade Agreement with regards to wines and the winery. I thought I would write a little post about my thoughts.
Whatever else the merits of the deal are, as far as I know European wine and spirits will have much lower tariffs (By 98% I have read) to enter Canada. So the prices on European alcohols should drop nicely (Unless your provincial liquor corporation decides otherwise). I cannot find any information stating that Canadian products will be similarly received across the pond. If they are, I think it would be fun to introduce Europeans to the delight of our Cranberry Ceilidh.
I am not too disheartened by this news. It is important to remember that we are an artisan winery and our production volumes are kept inline with our sales in NB. We also produce a lot of delicious fruit wines, something which is seen as a lesser wine in comparison to grape wines in Europe. I'd have to imagine that we won't be seeing many of those on our shelves too soon.
Canadians have become locavores in the past couple of years. If you don't know what a locavore is perform a simple test on yourself. If you had the option of buying a vegetable from a grocery store or a local farm for the same price, which would you choose? Even our grocery stores recognize this and are trying to change their packaging to say things like 'country sourced' and 'farmers market fresh'. Whether those statements are true or not, people do want to know where their food is coming from these days. It is no different with wines and New Brunswickers are discovering our award-winning varieties now.
Industrial wineries should be concerned about the deal as an influx of cheaper European booze means more competition for them in all their markets. That said I don't think they have to be too worried. Worldwide grape volumes are down so wines are going to be sold to the highest buyer which at the moment is generally China, at least for grape wines. When I was at a wine show in Guangzhou, China a couple of years ago there was a winery who brought 2 cases of 2009 Chateau Lafite. They sold it in a day at $2500 a bottle!
I have no say in the deal itself, but I hope it brings tangible economic benefits to NB specifically and Canada generally. I'd love to try my wines out in Europe but until we know more details, I'll stick to making exceptional products, using only 100% NB grapes and fruits, which I know my customers love.
Alan
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