Wine companies did the right thing in dealing with the labelling controversy

The British Columbia wine industry has taken swift action to address confusion over the marketing of wines blended and bottled here but produced elsewhere.

Vincor Canada and Andrew Peller, two of Canada's biggest wine companies, are to be commended for quickly acknowledging the problem last week following stories in The Vancouver Sun that described how imported bulk wines labelled as "cellared in Canada" led consumers to believe they were buying B.C. wines. These wines are often displayed at Liquor Distribution Branch stores alongside 100-per-cent B.C. wines.

It's important to note that the wine companies were not in violation of any laws or in breach of any regulations. In fact, they were following them to the letter.

It's equally important to recognize that many of the wines in question are very good, that blending these wines -- whether they are from Chile, South Africa or California -- to achieve the right balance and consistency requires extraordinary skill and craftsmanship, and that their reasonable prices put them in reach of people with average incomes.

Nevertheless, these wines should not be mistaken for wine made from B.C.-grown grapes. People accustomed to buying local wine know that bottles bearing the Vintners Quality Alliance logo guarantee 100-per-cent B.C. wine.

They also may realize that only 3,600 hectares of grapes are grown in the Okanagan, compared with 190,000 hectares in California and 182,000 hectares in Chile, so B.C. grapes are relatively expensive.

A $10 bottle of wine, therefore, is unlikely to be made from 100-per-cent B.C. grown grapes.

Two wine company executives, Vincor president Eric Morham and Andrew Peller president and CEO John Peller, acted boldly and bravely by confronting the issue head-on. They met with The Sun's editorial board last week and gave countless interviews to the media.

They presented copies of the legislation under which they operate, the many regulations that govern their industry and the stringent standards required for VQA certification. What's more, they had an action plan, complete with mock ups of new labelling that was informative and transparent, leaving no doubt as to the origin of a bottle's content. Although they have no say in how the LDB conducts its affairs, they have held discussions with the government-owned retailer to ensure their bulk wine products are not mixed up with their VQA-certified B.C. wines. In Ontario, the Liquor Control Board now stocks bulk wines in a separate section labelled "Cellared in Canada."

Clearing up any misconceptions about the kind of wine that's in the bottle not only benefits consumers, it has been applauded by wine merchants, who anticipate consumers will now seek out the 100-per-cent B.C. wines that represent most of their sales.

The wine companies' prompt response also serves to protect their most valuable asset -- their brands. There was a risk that the reputation wine companies had worked so hard over so many years to establish would be tarnished. Canada occupies a small space in the world of wine and every international award won -- and there have been many -- is an occasion for celebration.

But when respected critics, including Jancis Robinson, and publications such as the august Economist, accused the Canadian and B.C. wine industries of deception and a "con" job, their allegations needed to be answered.

Vincor and Andrew Peller rose to the challenge and, if it's not premature to say so, have successfully laid this controversy to rest. It was a textbook example of how to handle a public relations crisis effectively.