MPP issues warning to winemakers, grape growers

Niagara-on-the-lake — Niagara Falls MPP Kim Craitor offered a stern warning to grape growers and wineries Friday morning: Work together or face government-imposed rules for the troubled Ontario wine industry.

Over the last five years, Craitor said he has heard differing views from growers and wineries on how to improve the sector.

But because the industry is so fragmented, Craitor said it’s frustrating for him and other government officials to determine how best to help the industry.

“So I’m simply saying, I’m hoping, that if you don’t work together we’re going to have one or two choices,” Craitor told the crowd gathered for the Grape Growers of Ontario’s annual media breakfast, held at the Hilton Garden Inn.

“The government’s going to have to impose something.... If you come up with a solution, and it requires something from the government, if you’re coming there with one voice, if that’s possible, then you have the best opportunity to have some success.”

After a challenging 2008 grape season, which left a surplus of about 2,300 tonnes of fruit without a buyer, the government expects wineries and grape growers to come together with ideas to fix the industry, Craitor said.

Last October, the provincial government gave $4 million to growers through the one-time Harvest Program to buy surplus grapes. One of the conditions of the cash was that growers and wineries work together to figure out ways to make the industry sustainable.

Discussions between the Grape Growers of Ontario and the Wine Council of Ontario are ongoing.

But on Friday morning, Grape Growers of Ontario officials said they’ve been working to find common ground with wineries, and are making progress.

“Working together is the only way government’s going to take a look at a lot of things,” Grape Growers of Ontario CEO Debbie Zimmerman said in an interview following the meeting.

“The importance is that we need a single strategy for the industry. That needs to be done sooner than later.”

Both sides agree Ontario wine sales need to increase to help struggling small craft wineries and grape growers, and to move the sector forward.

The grape growers goal is to grow the Ontario wine industry’s market share in the province to 51 per cent. Right now, about 43 per cent of the wine sold in the province is made in Ontario.

During her speech Friday, Zimmerman said several things need to change to help the industry:

• Better promotion of Ontario wine at government-controlled LCBO stores

• More retail options to sell Ontario wine beyond onsite winery stores, restaurants, bars and the LCBO, including options like The Beer Store and grocery stores

• More focus on Vintners Quality Alliance wines made with 100 per cent Ontario grapes instead of Cellared in Canada (CIC) wines, a blend of domestic and up to 70 per cent foreign wine

Grape Growers chairman Bill George Jr. said it would be difficult to erase Cellared in Canada wines all together right now. Currently, about 30,000 tonnes of grapes — half of last year’s 60,780-tonne harvest worth $79.5 million — grown in Ontario go into these blended wines, he said.

George said the issue of how to label blended wines, the amount of foreign grapes being used and the overall grape pricing structure are all issues being discussed with the Wine Council of Ontario.

The province’s wineries and grape growers are expected to provide the government with an update on the progress of their talks this month.

The 61-year-old Grape Growers of Ontario marketing board represents more than 600 growers in Ontario.