Wine and tourism stakeholders working toward common goal

Getting Niagara’s wine industry to the next level begins with something as simple as writing letters to MPs and MPPs. 

That’s what Grady Peller, senior manager of corporate strategy and marketing transformation at Andrew Peller Ltd. urged about 35 wine and tourism industry stakeholders gathered at an event at Ravine Vineyard’s conference centre last week. 

The Niagara-on-the-Lake Chamber of Commerce hosted the event, a chance to take a closer look at the data from the recently released Niagara Uncorked study conducted by Deloitte Canada. The report estimates that the region could see an additional $8 billion in wine-related economic growth in the decades to come.

“As we delve into the insights of the study,” Chamber and Tourism Niagara-on-the-Lake president and CEO Minerva Ward told the crowd, “let’s not forget that our wine industry is but one facet of a larger tapestry woven by a rich diversity of experiences.”

As Peller and Del Rollo, vice president of corporate affairs at Arterra Wines, went on to present some of the numbers from the Deloitte study, much of the focus beyond the numbers was about the growers, the wineries, the restaurants, the accommodations and cultural industries and other tourism-related organizations working together toward a common goal. 

“Based on Deloitte’s analysis,” said Peller, “the wine sector has the opportunity to drive economic growth in the region today and tomorrow. Grape growing and winemaking are not only significant contributors to the regional, provincial and national economies today. Their future ongoing success is essential to the region
reaching its full potential.”

Both speakers frequently used the term “benchmark” in comparing Niagara to regions such as California’s Napa Valley, the Bordeaux region of France and Tuscany, Italy. 

“These three regions are so successful,” Peller explained, “because they are incredible purveyors of not only wine, but also cultural and hospitality experiences that, combined, people will travel from around the world to spend their money on.”

With Niagara Falls nearby, a growing hospitality and food services industry in the region, and both Brock University and Niagara College here, the Deloitte study suggests Niagara is poised to join those regions in worldwide success if it all comes together.

Niagara, said Peller, grows 90 per cent of the grapes in Ontario, and 80 per cent of the country’s. Unfortunately, he added, Ontario is the highest taxed wine region in the world, while British Columbia’s Okanagan Valley industry is number two. 

“The wine industry continues to outperform the broader economy,” Peller stated, “but despite our ability to generate sales growth year after year, we face punitive tax policies that are not experienced anywhere else in the world.” 

The problem, according to both Peller and Rollo, is the current 6.1 per cent tax which is charged by the province on wines sold at the wineries themselves, making it difficult for smaller producers to stay afloat.

“We subsidize the government with this tax,” Rollo added. “We pay over $850 million in taxes to the government per year. We would just like to have a little bit of that back. And with that we will be able to turn around and bring it back to them to them in spades to the tune of $8 billion.”

Later in his presentation, Rollo urged everyone involved in the Niagara economy to “stop navelgazing and do something big and bold”. 

“We have to give the consumer everything that they want,” he urged. “It’s all here. We have the casino, the wineries, restaurants, Shaw, the airport. We can only to this together. But this 6.1 per cent tax has to go.”

When the floor opened up to questions and comments from those in the audience, Niagara Falls MPP Wayne Gates lamented the treatment Ontario’s VQA wines receive at LCBO stores. 

“Our wineries shouldn’t have to fight for shelf space in our own stores,” Gates said. “On Canada Day, their website was promoting wines from France. On Canada Day! And so many small wineries are in trouble because of that 6.1 per cent tax, too.”

Lord Mayor Gary Zalepa promised that the counsellors attending the Association of Municipalities of Ontario meetings would all be addressing those issues this week in London, Ontario. 

George Lepp, president of Lepp Farms, expressed frustration that jurisdiction for the wine industry falls under the banner of six different government ministries in Ontario, something that is certainly not the case in Napa, Bordeaux and Tuscany.

Rollo pointed out that he had been talking to Minister of Economic Development, Job Creation and Trade Vic Fideli recently about that exact topic. 

“We will keep beating the drum until we win,” Rollo said. “But you all need to help. Talk, spread the word about Niagara, and start writing those letters today.”