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1 Wine Turism Prduct BUILDING TOURISM WITH INSIGHT WINE Octber 2009 This prfile summarizes infrmatin n the British Clumbia wine turism sectr. Wine turism, fr the purpse f this prfile, includes the tasting, cnsumptin r purchase f wine, ften at r near the surce, such as wineries. Wine turism als includes rganized educatin, travel and celebratin (i.e. festivals) arund the appreciatin f, tasting f, and purchase f wine. Infrmatin prvided here includes an verview f BC s wine turism sectr, a demgraphic and travel prfile f Canadian and American travellers wh participated in wine turism activities while n pleasure trips, detailed infrmatin n mtivated wine travellers t BC, and ther utdr and cultural activities participated in by wine travellers. Als included are verall wine turism trends as well as a review f Canadian and US wine cnsumptin trends, mtivatin factrs f wine turists, and an verview f the BC wine industry frm the supply side. Research in this reprt has been cmpiled frm several surces, including the 2006 Travel Activities and Mtivatins Study (TAMS), nline reprts (i.e. Statistics Canada, Wine Australia, (US) Wine Market Cuncil, Winemakers Federatin f Australia, Turism New Suth Wales (Australia) and the BC Wine Institute. Fr the purpse f this turism prduct prfile, when describing results frm TAMS data, participating wine turism travellers are defined as thse wh have taken at least ne vernight trip in 2004/05 where they participated in at least ne f three wine turism activities (1) Cking/Wine tasting curse; (2) Winery day visits; r (3) Wine tasting schl. Wine turism mtivated travellers are thse wh have taken at least ne vernight trip in 2004/05 where the trip was mtivated by at least ne f the three wine turism activities. Demgraphic Prfile 1 DEMOGRAPHIC PROFILE OF WINE TOURISM TRAVELLERS Canadian and US pleasure travellers participating in the 2006 Travel Activities and Mtivatins Survey (TAMS) wh had been t British Clumbia in the past tw years were asked t indicate if they had participated in a wine turism activity while n a trip. Thse wh had participated in these activities were further asked if a wine turism activity had been a primary mtivating factr fr any f their trips. There were apprximately 3.3 millin Canadian travellers participated in wine turism and 30 millin American travellers in 2004/05. Of these, apprximately, 45% (1.5 millin Canadians) and 9.2% (2.7 millin Americans) had made a trip t British Clumbia within the past tw years. Apprximately half f wine turism travellers frm bth Canada and the US wh have been t British Clumbia in the past tw years and participated in a wine turism activity while n an vernight trip were male. Amng thse travellers fr whm wine turism was the primary trip mtivatr the prprtin f males increased t apprximately 60% in bth the Canadian and US market (Table 1). Adult pleasure travellers acrss all ages were likely t participate in wine turism activities r were mtivated by wine turism when they travel. Mre than ne third were aged 55 years r lder and US Wine travellers (participate and mtivate) were mre likely t be lder than their Canadian cunterparts 1 Unless therwise nted, infrmatin in this reprt is frm the 2006 Travel Activities and Mtivatins Survey. 1

2 Wine turism travellers tend t be higher incme earners with at least 40% f Canadian and Americans wine travellers earning annual husehld incmes greater than $100,000. The prprtin f Canadian travellers wh participated in wine turism activities earning mre than $100,000 was higher amng thse mtivated t travel by wine turism. The verall incme distributin f wine turism travellers was ntably much higher than that f typical pleasure Canadian r American travellers (Table 2). The majrity f pleasure travellers wh were mtivated t travel by wine related activities were well-educated. Apprximately 59% f Canadians and 72% f Americans categrized as wine mtivated travellers had cmpleted pst-secndary educatin. Table 1: Demgraphic prfile f BC wine turism travellers frm Canada and the US Demgraphics f Wine turism travellers frm Canada and the US wh have been t BC Canada Participate Mtivate Participate Mtivate Adults 18+ 1,499, ,938 2,735, ,514 Unweighted Numbers 2, Gender Male 47.7% 60.2% 52.8% 57.1% Female 52.3% 39.8% 47.2% 42.9% Age % 24.5% 16.4% 14.2% % 20.0% 14.8% 14.7% % 22.5% 23.3% 25.8% % 21.8% 22.4% 23.1% % 11.2% 23.1% 22.2% Husehld Incme Under $40, % 15.2% 9.0% 8.3% $40,000-$59, % 9.1% 10.4% 11.1% $60,000-$99, % 19.8% 26.0% 26.6% $100,000 r mre 39.6% 45.7% 43.3% 43.2% Nt stated 9.5% 10.1% 11.4% 10.8% Educatin Less than Secndary 4.9% 5.2% 0.9% 1.0% Cmpleted Secndary 20.6% 22.9% 4.6% 6.1% Sme Pst Secndary 10.6% 13.1% 20.3% 18.5% Cmpleted Pst Secndary 63.3% 58.7% 72.3% 72.4% Other n/a n/a 0.4% 0.0% Nt stated 0.7% 0.1% 1.5% 2.0% Surce: Travel Activities and Mtivatins Study 2006; special analysis by Turism British Clumbia. Table includes thse wh have visited British Clumbia (at least nce) in the past tw years n an ut-f-twn pleasure r vacatin trip f ne f mre nights. * Nte: Cells with values displayed in red are based n small sample sizes (i.e. less than 50) and shuld be interpreted with cautin. US DEMOGRAPHICS BY SPECIFIC WINE TOURISM ACTIVITY CANADIAN PLEASURE TRAVELLERS WHO HAVE TRAVELLED TO BRITISH COLUMBIA The gender distributin f Canadian pleasure travellers was evenly split, whereas Canadian wine turism travellers were slightly mre likely t be male. Bth Canadian travellers wh were mtivated t travel t take part in a wine tasting curse and/r visit a winery were mre likely t be male than the typical Canadian pleasure traveller (61% & 60%, respectively). Canadian wine mtivated travellers wh als visited BC tend t be slightly lder than the typical Canadian pleasure traveller wh visited BC, with thse wh were mtivated by wine tasting curses being the ldest grup (37% aged 54 years r lder). Canadian travellers mtivated by wine turism activities earn significantly higher incmes than the verall Canadian pleasure traveller visiting British Clumbia. Three in ten Canadian travellers t British Clumbia reprted annual husehld incmes ver $100,000. This increases t 43% fr wine travellers mtivated t visit wineries and 56% f thse mtivated t travel t participate in wine tasting curses. 2

3 The majrity f Canadian pleasures travellers t British Clumbia were well-educated, with mre than half (55%) having cmpleted pst secndary educatin. Participating wine turism travellers were even mre likely t have attained this higher educatin level (62%). Similarly, 57% f Canadians mtivated t visit wineries and 62% f thse travelling t attend a wine tasting curse cmpleted pst secndary educatin. Table 2: Demgraphics by specific wine turism activity types fr (mtivated) travellers frm Canada Demgraphics f Canadian Travellers wh have been t BC by Wine Activity Type All Canadian Travellers wh Visited BC Type f Wine Turism (Mtivated) Wine Tasting Curse Wine Winery Day Visit 5,651,177 59, ,381 Unweighted Numbers 7, Gender Male 49.9% 60.7% 59.7% Female 50.1% 39.3% 40.3% Age % 22.3% 23.9% % 24.8% 18.7% % 15.7% 23.9% % 30.2% 21.1% % 7.0% 12.4% Husehld Incme Under $40, % 6.4% 17.7% $40,000-$59, % 8.3% 8.9% $60,000-$99, % 19.4% 18.8% $100,000 r mre 29.1% 56.2% 42.9% Nt stated 12.0% 9.6% 11.6% Educatin Less than Secndary 7.2% 5.9% 5.2% Cmpleted Secndary 24.9% 30.9% 22.1% Sme Pst Secndary 12.0% 0.9% 15.7% Cmpleted Pst Secndary 55.1% 62.0% 56.9% Nt stated 0.7% 0.3% 0.1% Surce: Travel Activities and Mtivatins Study 2006; special analysis by Turism British Clumbia. Table includes thse wh have visited British Clumbia (at least nce) in the past tw years n an ut-f-twn pleasure r vacatin trip f ne f mre nights. * Nte: Cells with values displayed in red are based n small sample sizes (i.e. less than 50) and shuld be interpreted with cautin. Survey sample fr Wine Wine Tasting Schl t small t prvide analysis. DEMOGRAPHICS BY SPECIFIC WINE TOURISM ACTIVITY AMERICAN PLEASURE TRAVELLERS WHO HAVE TRAVELLED TO BRITISH COLUMBIA Amng all US travellers t British Clumbia, males were slightly mre likely t have visited (52% male and 48% female). When lking at the gender distributin acrss wine turism activity types there was als a slight tendency fr thse mtivated t travel t visit wineries mre likely t be male (62%) cmpared t the ther wine turism activities. Nearly 70% f US wine travellers wh had als visited BC in the tw year perid were aged 45 years r lder. In cmparisn, 65% f the US pleasure travellers t BC were ver 45 years f age. Thse US pleasure travellers wh were mtivated t travel t partake in a wine tasting curse were mre likely t between the ages f years (35%) cmpared t bth the typical US pleasure traveller t BC and US wine traveller mtivated t visit wineries (22% fr bth). The prprtin f US wine travellers wh have als visited BC earning high husehld incmes, hwever, is greater than their Canadian cunterparts. As much as 60% f thse wh were mtivated t travel t attend a wine tasting curse earn annual husehld incmes ver $100,000. Of the mtivated wine travellers wh visit wineries, 45% earn incmes ver $100,000. This is cmpared t the typical US pleasure traveller t BC, where nly 35% earn incmes f $100,000 r mre. 3

4 With regards t educatin levels attained, the US wine mtivated travellers were well-educated. Over 74% have cmpleted pst secndary educatin, and thse n a wine curse were even mre likely t be highly educated than thse ding a winery day visit. US travellers t BC, as a whle, were als mstly educated at the pst secndary level but the ttal prprtin is lwer than the wine traveller segment (65%). Table 3: Demgraphics by specific wine turism activity types fr travellers frm the US wh have als visited BC in 2004/05 Demgraphics f US Travellers wh have been t BC by Wine Activity Type All US Travellers wh Visited BC Type f Wine Turism (Mtivated) Wine Tasting Curse Winery Day Visit Ttal 7,025, , ,055 Unweighted Numbers 2, Gender Male 52.2% 52.7% 62.1% Female 47.8% 47.3% 37.9% Age % 12.4% 14.8% % 16.8% 12.4% % 34.7% 21.8% % 16.7% 26.4% % 19.4% 24.7% Husehld Incme Under $40, % 6.7% 8.7% $40,000-$59, % 7.3% 11.9% $60,000-$99, % 24.0% 26.1% $100,000 r mre 34.5% 57.1% 42.1% Dn't Knw/Nt Stated 11.6% 4.9% 11.2% Educatin Less than Secndary 1.6% 0.0% 1.2% Cmpleted Secndary 7.9% 6.0% 5.2% Sme pst Secndary 23.4% 12.3% 18.2% Cmpleted Pst Secndary 64.7% 77.6% 74.2% Other 0.5% 0.0% 0.0% Nt Stated 1.9% 4.1% 1.2% Surce: Travel Activities and Mtivatins Study 2006; special analysis by Turism British Clumbia. Table includes thse wh have visited British Clumbia (at least nce) in the past tw years n an ut-f-twn pleasure r vacatin trip f ne f mre nights. * Nte: Cells with values displayed in red are based n small sample sizes (i.e. less than 50) and shuld be interpreted with cautin. Survey sample fr Wine Wine Tasting Schl t small t prvide analysis. Travel Prfile TRAVEL BY CANADIAN AND US WINE PLEASURE TRAVELLERS The 2006 Travel Activities and Mtivatins Survey (TAMS) estimated that a ttal f 5.6 millin Canadian travellers visited British Clumbia at least nce in 2004/05. Amng these travellers, 27% participated in at least ne wine turism activity while n an vernight pleasure trip in the past tw years. A much lesser prprtin, apprximately 4%, was mtivated by wine turism activities when they travelled (travellers fr whm wine turism was the primary reasn fr taking at least ne trip in the tw year perid). Amng the estimated 7 millin US travellers wh had visited BC at least nce in 2004/05, as many as 39% participated in a frm f wine turism while n at least ne trip during thse tw years. Nearly 10% were mtivated by at least ne f the wine turism activities identified when they travelled (Table 4). 4

5 The majrity f bth Canadian and American travellers t British Clumbia indicated that they had taken 5 r mre ut-f-twn pleasure trips in 2004/05 (58% and 65% respectively). An even higher percentage f frequent trips were reprted amng travellers wh had either participated in r were mtivated by wine turism. A ttal f 66% f participating and 73% f mtivated Canadian wine travellers culd be cnsidered frequent travellers with 5 r mre vernight trips. In the US market, 76% f participating and 75% f mtivated American wine turism travellers reprted travelling with the same frequency during the tw year perid. The appeal f British Clumbia was rated very highly by the majrity f all travellers acrss all categries. Of all Canadian travellers t BC, 88% rated British Clumbia an 8 r higher (n a 10-pint scale), while 76% f all US travellers t BC rated the prvince an 8 r higher n the same scale. Canadians wh said they participate in wine turism regard BC as a very appealing destinatin, as 90% f bth participating and mtivated Canadian wine turism travellers rated BC n the scale at an 8 r higher. Mst American wine turism travellers als rated BC at the high end f the scale (+80% rated BC at 8 r higher) but they d nt regard BC quite as highly as their Canadian cunterparts. Wine travellers were mre likely t have travelled in the summer cmpared t winter, althugh participatin rates were very high fr bth seasns in all categries. Americans (all pleasure travellers as well as wine travellers) are even mre likely than Canadians t travel in winter. Table 4: Travel prfile f Canadian and American Wine Turism Travellers Canada All Travellers wh visited BC Participate Mtivate All Travellers wh visited BC US Participate Mtivate Ttal 5,651,177 1,499, ,938 7,025,878 2,735, ,514 Unweighted Numbers 7,315 2, , Ttal number f ut-f-twn pleasure trips taken in past tw years One 6.9% 4.8% 3.2% 3.3% 1.7% 1.4% Tw 11.8% 8.3% 4.1% 8.7% 5.1% 5.2% Three 11.9% 8.90% 5.1% 9.5% 6.3% 5.4% Fur 11.5% 12.00% 15.1% 11.7% 9.9% 12.2% Five Or Mre 57.9% 66.10% 72.5% 65.4% 76.0% 75.4% Nt Stated 0.0% 0.00% 0.0% 1.3% 1.1% 0.3% Appeal Of British Clumbia Rated n a scale f 1 t 10 8 t % 90.50% 90.3% 75.7% 80.0% 86.2% 4 t 7 9.6% 8.00% 8.8% 18.2% 14.0% 9.5% 1 t 3 1.1% 0.80% 0.4% 2.6% 3.1% 2.1% Dn't Knw 0.6% 0.00% 0.0% 2.2% 1.4% 0.8% Nt Stated 1.2% 0.00% 0.0% 1.2% n/a n/a Seasn travelled Summer 89.9% 92.30% 94.7% 87.7% 89.3% 88.5% Winter 71.0% 78.60% 80.2% 77.4% 85.9% 86.7% Surce: Travel Activities and Mtivatins Study 2006; special analysis by Turism British Clumbia. Table includes thse wh have visited British Clumbia (at least nce) in the past tw years n an ut-f-twn pleasure r vacatin trip f ne f mre nights. * Nte: Cells with values displayed in red are based n small sample sizes (i.e. less than 50) and shuld be interpreted with cautin. OTHER DESTINATIONS VISITED Of the estimated 3.3 millin Canadians wh participated in r were mtivated by a wine turism activity as part f their travel in the past tw years, 45% had travelled t British Clumbia in the same time perid. Canadian wine turism travellers were well-travelled. They were as likely as ther Canadians t have travelled t Alberta but were mre likely t have travelled t Ontari, Quebec, smewhere in the US, Mexic and the Caribbean and/r Eurpe cmpared t the general Canadian traveller. Als, Canadian wine mtivated travellers were mre likely t have travelled t many different destinatins. Of the estimated 30 millin US wine turism travellers, apprximately 9% had made a trip t British Clumbia in 2004/05. 5

6 All American wine turism travellers had travelled within the US in the tw year perid (2004/05). They were slightly mre likely t travel t Ontari, Mexic/Caribbean, Eurpe and ther destinatins than the typical US pleasure traveller t BC. OTHER ACTIVITIES (OUTDOOR AND CULTURAL) PARTICIPATED IN Overall, participatin rates in ther utdr and cultural activities that wine travellers tk part in were quite similar between British Clumbian, Canadian and US markets (Table 5). The mst ppular travel activities included cultural activities like strlling t see city buildings and histric sites/buildings and well-knwn natural wnders. Sunbathing/sitting n a beach and swimming in lakes and ceans were the mst ppular utdr activities fr wine travellers. British Clumbian wine travellers were twice as likely t include swimming in lakes in their travel cmpared t US travellers. Canadian wine travellers were als mre likely t be swimmers than their US cunterparts. US wine travellers had high participatin rates in many heritage-type activities, such as strlling a city t see buildings (65% fr participating and 71% fr mtivated US wine turists), visiting histric sites r buildings (67%- 75%), seeing well-knwn natural wnders (arund 60%). Hiking, glf and dwnhill skiing were the mst cmmn cmplementary sprts-related utdr activities f interest t wine travellers. Hwever, these activities had cnsiderably lwer incidence rates in cmparisn t ther mre general utdr and/r culture related activities, US mtivated wine travellers shw particularly strng interest in cultural activities such as: museumshistry/heritage (53%); art galleries (57%); farmers markets/cuntry fairs (59%); btanical gardens (50%); and, live theatre (51%). In all cases, the interest is strngest amng mtivated US wine travellers; hwever, US participating wine travellers were als mre likely t enjy these cultural activities than Canadian participating wine travellers. Table 5: Other utdr and cultural activities participated in by Wine Turism travellers BC Canada US Activities Participate Mtivate Participate Mtivate Participate Mtivate Strll A City T See Buildings 68.2% 61.2% 66.2% 64.7% 69.7% 70.9% Sunbathing/Sitting On A Beach 65.1% 59.7% 53.7% 57.9% 44.7% 44.2% Histric Site/Buildings 56.3% 48.6% 53.6% 58.8% 66.5% 74.9% Nature Park- Natinal/Prvincial 65.0% 65.0% 46.5% 44.3% 56.4% 51.0% Well Knwn Natural Wnders 38.8% 50.9% 44.8% 38.2% 57.9% 61.8% Museum - Histry/Heritage 40.4% 41.8% 43.7% 45.5% 52.0% 52.6% Art Galleries 40.1% 39.8% 43.0% 46.8% 49.1% 57.0% Swimming In Lakes 59.3% 63.7% 42.8% 40.6% 22.7% 29.7% Swimming In Oceans 50.7% 46.0% 42.2% 59.5% 42.0% 45.1% Other Histric Sites/Buildings 48.2% 36.1% 41.8% 48.9% 58.0% 68.2% Farmers' Markets/ Cuntry Fair 45.1% 32.4% 39.4% 35.0% 46.2% 58.9% Hiking Same Day Excursin 21.0% 29.9% 37.7% 28.3% 43.0% 38.7% Btanical Gardens 26.3% 33.4% 34.4% 27.9% 44.6% 50.2% Live Theatre 23.3% 21.6% 27.6% 30.3% 40.2% 50.5% Free Outdr Perfrmances 26.7% 23.7% 27.5% 26.3% 35.9% 42.6% Glfing - Occasinal Game 22.4% 30.4% 26.9% 30.4% 23.6% 23.1% Aquariums 22.5% 34.8% 24.8% 28.0% 43.2% 45.2% Firewrk Displays 23.4% 22.4% 23.9% 24.3% 32.7% 41.7% Skiing Dwnhill 20.00% 36.5% 23.5% 25.0% 20.6% 22.7% Surce: Travel Activities and Mtivatins Study 2006; special analysis by Turism British Clumbia. Table includes thse wh have visited British Clumbia (at least nce) in the past tw years n an ut-f-twn pleasure r vacatin trip f ne f mre nights. 6

7 Trends in Wine Turism The fllwing insight cmes frm Wine Business Mnthly 2 Wine turism is linked with culinary, ec- and agri-turism and is expanding in mst majr wine grwing regins arund the wrld including: France, Spain, Germany, Italy, the U.S., Suth Africa, Australia, New Zealand, Austria, Chile and thers such as BC. One f the reasns wine turism is grwing is because f gvernment r reginal strategies t prmte r increase wine turism due the ecnmic returns. The infrastructure arund wine turism ften includes wine educatin centres, htels, restaurants, wine trails and ther cmpnents which prmte the industry. Wine turism is als grwing due t an increased interest in envirnmental issues, which has led t grwth in ec- and agri-turism that encmpasses vineyards. There has been further cnsumer grwth and interest in dining and cking, which is reflected in the rise in restaurant revenues as well as the number f new TV cking shws. A café sciety trend has been identified where peple want t enjy life mre thrugh the culinary arts and take time t enjy cnversatin with friends and family ver a meal. Wine is a natural part f this trend, and therefre helps t explain nt nly the grwth in wine turism but als the grwth in wine cnsumptin especially in the US. There has been grwth in the number f wineries wrldwide. In the US, there were 26% mre wineries in 2007 than in Increased glbal cmpetitin in wine has spurred many small wineries t unite with their therwise neighburing cmpetitrs and implement a strategy t attract mre visitrs t their wine regin. In Canada, the wineries f the Okanagan Valley and Niagara Peninsula are the mst well-knwn. These regins have devised successful strategies t increase the number f visitrs (dmestic and internatinal) as well as repeat visits. In additin they have develped cperative marketing effrts t prmte their regins wine turism prduct, tgether with glf and culinary specialties. These cmplementary activities further increase the ptential fr greater visitr satisfactin and lnger lengths f stay in the regin. The bvius benefit f increased wine turism fr wineries is related t increased sales due t mre visitrs. It is estimated that a purchase f sme srt will be generated by upwards f 50%-90% f wine turist visits. The invitatin t taste wine usually encurages visitrs t make a purchase. Other benefits t wineries include: higher margins because the sale is made directly frm the winery, the pprtunity t attract new custmers, the ptential t enhance brand lyalty, and btain custmer feedback n wine prducts. Ultimately, the whle cmmunity can benefit as wine turism visitrs generate revenues fr stres, restaurants, htels and all the emplyees wh wrk in thse establishments. Successful implementatin f a wine turism strategy requires high levels f cperatin, partnership and cmmitment frm the wineries and the cmmunity. 2 Trends in Wine Turism, August 15, 2007 article in Wine Business Mnthly. Available frm 7

8 MOTIVATIONS OF WINE TOURISTS WineBusiness.cm 3 identifies the fllwing 10 majr factrs that mtivate peple t visit wine regins: T taste wine T gain wine knwledge T experience the wine setting (e.g. meet the winemaker, tur cellars and vineyards) T be in a rural setting (beauty f vineyards, learn abut farming, agri-turism T match fd and wine culinary turism T have fun (wine festivals and events) T enjy wine culture (rmance and elegance) T appreciate the architecture and art T learn abut the green aspects and ec-turism f the regin T enjy the health aspects f wine In New Wrld wine regins such as thse in BC, visitrs are typically mst interested in tasting wine, gaining knwledge, experiencing the wine setting and having fun. OTHER TRENDS IN THE CANADIAN AND BRITISH COLUMBIAN WINE INDUSTRIES Statistics Canada 4 research suggests that Canadians are changing their alchl purchase patterns: Beer remains the alchlic drink f chice fr Canadians in terms f bth vlume and dllar value, but its dminance has steadily declined as cnsumers turn mre t wine. Canadians are purchasing mre wine as evidenced by increases in wine sales which grew frm an average f 11.7 litres per capita in 2000 t 15.0 litres in Wine has grwn in ppularity in BC in particular, with wine sales reaching 17.3 litres per capita in Overall, BC had the third highest wine sales (litres) per capita in Canada, after Yukn (21.0) and Quebec (20.1). In 2007/2008, BC had the secnd highest wine sales per capita (15 years and lder) at $240.60, fllwing the prvince f Quebec. Ttal BC wine sales were up 11.5% fr the year ending March 31, 2008 ver the previus year. There is a trend fr Canadians t purchase higher vlumes f dmestically prduced wines. Canadian wine drinkers are a key market fr the Australian wine industry and British Clumbians purchase the mst Australian wine in Canada. The Australian wine industry 5 has determined the fllwing characteristics abut Canadian cnsumers; Canadians are sphisticated wine drinkers wh tend t rate quality ver price. High-quality imprts are leading the grwth in this categry ver dmestic prducts and imprted blends. The increasing dispsable incmes in Canada have resulted in trading-up t mre expensive wines. Particularly, as the ppulatin ages, health cncerns prmpt mre red wine cnsumptin and the increased dispsable incmes supprt this purchase behaviur. Grwth in Canadian wine drinking is als partially due t the increasing cnsumptin amng yung prfessinals. Reprts suggest yung Canadians drink mre wine than their parents. Red wine is expected t cntinue t lead the grwth in bth vlume and value terms, with white and rsé expected t grw in smaller vlumes. Cabernet Sauvignn is the mst ppular red varietal, fllwed by Merlt and Shiraz. In fact, Shiraz has been the success stry f recent years, driven largely by imprts frm Australia. Chardnnay and Sauvignn Blanc are the mst ppular white varieties. Single varietal wines are increasing in ppularity at the expense f blends. Grape variety and rigin are a majr fcus fr many cnsumers. 3 Ibid. 4 The Cntrl and Sale f Alchlic Beverages in Canada. Statistics Canada Catalgue n x. Released June 12, Wineaustralia.cm. Wine Australia is the strategic marketing arm f the Australian Wine Industry in Canada. 8

9 OTHER TRENDS IN THE US WINE MARKET The fllwing research is derived frm the US Wine Market Cuncil s 2008 Cnsumer Tracking Study 6. The US wine market cntinues t grw. In 2008, verall table wine cnsumptin and the adult per capita cnsumptin f table wine set recrd high levels with 15 cnsecutive years f increases recrded. Per capita cnsumptin was nly 1.89 gallns per adult in 1991, cmpared t an all-time high f 2.97 gallns in The surge in ppularity f wine is cming frm yung adults f the Millennial 7 generatin and the fact that beer and spirits drinkers are als increasingly finding that they like wine as well. In additin, there has been grwth in chsing wine as an accmpaniment t meals in casual chain restaurants and at hme when the family dines all-tgether. Wine cnsumptin increases are als attributed t the cntinuing assimilatin f news relating mderate wine cnsumptin t psitive health utcmes, mre effective brand marketing and nging media campaigns cnducted by the wine agencies which tgether have changed cnsumer attitudes abut the ccasin apprpriateness f wine. INTERNATIONAL WINE TOURISM MARKETS Research int wine turism and internatinal wine turists in particular by the Australian state turism department f New Suth Wales 8 prvides the fllwing insight: Internatinal visitrs wh travel t wineries have a higher interest than ther visitrs in cultural attractins (museums, art galleries, wine festivals particularly thse reflecting lcal custms and heritage. Prprtinately mre winery visitrs als g t natinal parks and btanical r ther public gardens than d ther visitrs. Wine turism is a brad area f interest that is ppular amng verseas visitrs, and is particularly f interest t visitrs frm the UK, Eurpe and Nrth America. Wineries and Wine in British Clumbia Accrding t the British Clumbia Wine Institute (BCWI), there are five wine regins (designated viticultural 9 areas) in BC: Okanagan Valley Similkameen Valley Fraser Valley Vancuver Island Gulf Islands In 2009, there are 160 licensed grape wine wineries r 710 wineries and independent grape grwing vineyards in BC. The Okanagan s grape prductin currently cvers sme 5,000 acres and is the ldest and largest wine-prducing regin in the prvince. The Okanagan has mre than 70 wineries supplying 90% f the prvince s wine prductin. Over 60 grape varietals are prduced in BC and the rati f white t red is: 51% t 49%. The tp ten varietals f each are as listed in Table 6. 6 Cnsumer Tracking Study prepared by Merrill Research fr the (US) Wine Market Cuncil The Millenial generatin, als knwn as Generatin Y, is a term used t describe the demgraphic chrt fllwing Generatin X. Its members are ften referred t as "Millennials r "Ech Bmers". There are n precise dates fr when Gen Y starts and ends. Mst cmmentatrs use dates frm the early 1980s t early 1990s. Members f Generatin Y are primarily the ffspring f the Baby Bm Generatin. 8 J urnal f the Bureau f Turism Research. Part f Factsheet series: Wine Turism Develpment Infrmatin: Understanding yur turism market. Prepared by Turism New Suth Wales, Australia. 9 Viticulture (frm the Latin wrd fr vine) is the science, prductin and study f grapes which deals with the series f events that ccur in the vineyard. 9

10 Table 6: Tp Ten Red and White Wine Varietals in BC (by acreage planted) Red Wine Varietals Merlt Pint Nir Cabernet Sauvignn Syrah (Shiraz) Cabernet Franc Gamay Nir Marechal Fch Malbec Petit Verdt Zweitgelt White Wine Varietals Pint Gris Chardnnay Gewurtztraminer Sauvignn Blanc Pint Blanc Riesling Vignier Ehrenfelser Semilln Bacchus Surce: BC Wine Institute The BC wine industry has seen verall grwth in the harvesting f wine grwing grapes and the prductin f wine in the prvince ver the past 10 years (Table 7). The vlume f bth harvesting and prductin mre than dubled in the last 10 years. The number f wineries tripled during the same time perid. Table 7: Ttal BC Grape Wine Harvest and Wine Prductin Year Harvest (shrt tns 2,000 lbs) Prductin (litres, est.) ,200 14,996, ,777 13,394, ,369 13,802, ,084 8,450, ,642 9,985, ,897 10,138, ,523 9,313, ,137 8,482, ,022 6,013, ,957 6,574,200 Surce: BC Wine Institute VQA WINE 10 Intrduced t BC in 1990, the VQA is an Appellatin f Origin system that guarantees authenticity f rigin and stipulates minimum quality standards fr Canadian wines. The VQA defines and mandates standards fr wine prductin and certificatin. Wines bearing the VQA symbl must be made entirely frm grapes grwn in specific prvinces and regins in Canada, prduced t a set f prductin standards, and must pass a sensry evaluatin prcedure. Participatin in the VQA prgram is vluntary. In 1990, VQA wine sales in BC ttalled 600,000 litres. In 2008 they ttalled apprximately 6.6 millin litres. Since 2000, British Clumbia VQA wine sales have mre than dubled t ver $160 millin in 2008/09. In 2008, BC VQA became the secnd-best selling categry in the BC market, capturing 20% f dllar sales in the market, ahead f all wine-imprting cuntries and behind nly cellared-in-canada nn-vqa wines. BC is als knwn internatinally fr its ice wines. In 2008, 420 tns f grapes were harvested t prduce ice wine in BC, yielding an estimated 126,000 litres. 10 British Clumbia Wine Institute 10

11 Overview f BC Wine Turism Sectr Turism British Clumbia and partners recently cmpleted an Okanagan Valley Wine Turism Visitr Study (2008). The purpse was t develp a prfile f travellers wh visited Okanagan Valley wineries in terms f traveller and trip characteristics. Sme highlights f the research results are utlined belw 11. The majrity f travellers in the Okanagan Valley wineries were between the ages f 35 t 64 years with the mst frequently stated age categry being 45 t 54 years f age (27%). Half (52%) f the respndents had annual husehld incmes f at least $100,000 and anther quarter (25%) had incmes between $65,000 and $99,999. Slightly ver three quarters (79%) f respndents indicated that this was nt their first time wine turing. Overall, the average travel party size was 2.8 peple and 14% f wine travellers were travelling with children. Thse parties with children had an average f 4.6 peple travelling in their grup. Parties travelling withut children had an average travel party size f 2.6 peple. The majrity (55%) f travellers indicated that wine turing played at least sme imprtance in planning their trip (knwn as high interest wine travellers). Over a quarter (27%) indicated it was the primary reasn with an additinal 27% rating it an imprtant reasn. On average, wine travellers intended t visit a ttal f 9 wineries during their trip averaging 3.5 wineries n the actual interview day. High interest wine travellers were mre likely t visit mre wineries in ttal (11.7) and als mre wineries in the Okanagan Valley (9.4) and per day (4.3) High interest wine travellers were very likely t take anther trip t the Okanagan t visit wineries (79%, Very likely). Travellers at the Okanagan Valley wineries spent an average f $ per party per day. High interest wine travellers reprted cnsiderably higher per diem expenditures then lw interest wine travellers ($ & $243.62, respectively). 11 Fr the full reprt, please visit: 11