Icewine makers toasting the frigid weather

Canada's exports gaining name around world
 
Paul-Andre Bosc recollects an old joke told by vintners when talking about wine and the economy. "Business doesn't go down in the booze industry, because when times are good people drink to celebrate, and when times are bad people drink to forget."

Mr. Bosc's family has been growing wine for five generations, starting in France. His father founded Chateau des Charmes winery in the Niagara, Ontario wine region in 1978, and soon after it was one of the first Canadian wineries to produce icewine.

Since then, the country's icewine industry has grown to nearly $12-million a year in exports, according to Agriculture Canada.

With icewine, Canada created a new niche in the luxury beverage alcohol sector," says Mr. Bosc, who is also chairman of the Canadian Vintners Association. "It's very rare that new products enter that market niche. French Champagne has been around for a very long time. Canadian icewine is a very new player on that scene."

But icewine, which many Canadian wineries export or sell through retail outlets at their vineyards, is seeing demand fizzle as people move away from luxury alcohol in the downturn. That's a sore point for vintners, because this year's harvest might be the best in years.

"Winter came early this year, and it's been unrelenting," says Daniel Speck, one of three brothers who founded and run Henry of Pelham Family Estate Winery in St. Catharines, Ont. "This is a perfect icewine vintage from the growing season."

Icewine production is a risky venture, wholly dependant on the weather. Thousands of dollars of grapes need to be left on the vine after the growing season. Vintners then spend months waiting for winter. According to Vintners Quality Alliance (VQA) standards, temperatures must dip to a freezing -8 C before the grapes can be harvested. Wine pressed from grapes picked in higher temperatures is forbidden from being called icewine -- it must be labeled dessert wine instead.

If a deep freeze doesn't come, the crop fails and revenue evaporates -- icewine represents up to 20% of revenue for some wineries.

"We really depend on winter," Mr. Speck says.

This year's abundant harvest arrives just as Canada's largest market for the sweet drink is drying up. The United States is one of the main destinations for Canadian icewine and drops in exports were seen even before the U. S. economy shrivelled. In 2006, exports to the U. S. sat comfortably at just over $5-million. That comprised nearly half of all icewine that left Canada. In 2007, the number plunged dramatically to $1.8-million.

"Sales are down 20%," says John Neufeld of Palatine Hills Estate Winery. "We're finding that people are looking for better prices. Everyone wants it cheaper than last year -- they want breaks."

David Orange, president of Wine Emporium in Brooklyn, which imports high-end wines, says sales of luxury wines have been down by about 35% since the U. S. Thanksgiving weekend. The holidays are typically the importer's busiest season. "We had some big wine store chains that, instead of ordering 10 cases over the holidays, they ordered five. They're still saying that people love it, but wines that sell for over $40 are usually the first to go."