VQA Ontario wine says "on fire" with almost 25 percent jump

Sales of Vintners Quality Alliance wines in Ontario are stronger than ever, and the Liquor Control Board of Ontario (LCBO) is taking some of the credit.

Between April and mid-July, the LCBO's dollar sales of VQA table wines rose almost 25 percent over the same period in 2008. Net sales totalled $20.59 million (CAN$22.4 million) compared to just under $16.54 million (CAN$18 million) a year earlier.

Volume sales indicate the same robust trend. They increased by more than 24 percent between April and mid-July over the same period in 2008 for a total of 1.6 million litres (an increase of 33,000 litres).

"Our sales are on fire," said Hillary Dawson, executive director of the Wine Council of Ontario told Wine Business. "We have great wine, so the LCBO is very motivated to put those wines on the shelves because they're so popular. It's a win-win situation."

Chris Layton, the LCBO's media relations co-ordinator, confirmed that sales growth "can be attributed to the high quality of VQA wines" being presented by wineries. "The LCBO's many initiatives in support of VQA wines are also paying off," he added.

The LCBO has made it one of the six key objectives in its five-year strategic plan to promote the growth of Ontario wine sales. Ontario is the only region or product category identified by the LCBO as a key objective, and various strategies are in the works.
For example, a wine product manager is exclusively working with wineries to promote sales and establish listing opportunities for Ontario VQA wines. There's also a Vintages product manager whose sole responsible is premium Ontario VQA wines.

Nearly 300 store employees have been designated as local Ontario wine advocates or WOW (World of Ontario Wines) Leaders to promote sales and help other staff when it comes to talking about the characteristics of Ontario wines and food pairing.

"VQA wines are regularly recommended as staff picks and this parlays into increased sales," Layton added.

The LCBO's annual province-wide promotion of Ontario wine has also built sales momentum. "The promotion takes place in all 608 LCBO stores," Layton said. "This year it runs from September 13 to October 10 and will feature more than 1,000 in-store tastings, as well as appearances by Ontario winemakers."

Freestanding inserts in major Ontario newspapers have promoted VQA wines every two months.

VQA sales growth has also been the result of new and innovative products, according to Layton. "Quite a number of wineries have made significant improvements in labelling and promoting their products in ways that make them more attractive to consumers," said Layton. "For instance, the three Speck brothers who own and operate Henry of Pelham Family Estate Winery have come up with a fun wine called Sibling Rivalry, which has been very popular.

"We believe that many consumers also want to support the local industry, especially in more challenging economic times," he added.

Dawson hopes to build on that local buying trend with even more joint efforts with the LCBO. "We still don't own our market and need to bring our share to at least 51 percent," she said.

If VQA Ontario sales continue as strongly, it will eventually help deal with the province's grape surplus, Dawson added.