Wines of British Columbia Liberal Party of Canada s Pacific Caucus (July 19, 2016)

Wines of British Columbia Liberal Party of Canada s Pacific Caucus (July 19, 2016)

Wine Region Comparison Region Acres Spain 2,724,700 France 1,966,510 Italy 1,712,607 United States 943,750 Argentina 560,000 California 535,000 Chile 449,722 Australia 402,639 New Zealand 76,928 Napa 45,275 Ontario 17,000 British Columbia 10,260

Growth in Number of BC Wineries Year Number of Grape Wineries Current 257 2010 185 2008 156 2007 134 2005 119 2000 60 1995 32 1990 17

Top Planted Varietals RED 51% of total planted acreage in BC Merlot Pinot Noir Cabernet Sauvignon Cabernet Franc Syrah/Shiraz Gamay Noir Maréchal Foch Malbec Petit Verdot Zweigelt WHITE 49% of total planted acreage in BC Pinot Gris Chardonnay Gewürztraminer Riesling Sauvignon Blanc Pinot Blanc Viognier Muscat Ehrenfelser Ortega

BC VQA = 100% BC BC VQA = British Columbia Vintners Quality Alliance BC VQA = Quality assurance BC VQA = official geographical indicator (GI) system BC VQA = internationally accepted protocols for production of BC wine

BC Wine Industry BC Wine Institute - Strategy Development and Future Planning - Wines of BC Market Development (Domestic, International and Retail) - Tourism Development - Communications Industry and Government BC Wine Authority (Ministry of Agriculture) - Standards and Appellation control BC Wine Grape Council Research and Development Winery and Vineyards improving production technologies BC Grape Growers Assn - Grower issues

BC Wine Institute Today Represents all the wineries in British Columbia for tourism, communications & advocacy Membership is voluntary Paid BCWI membership represents around 95% of all sales of 100% BC grapes in BC

ORGANIZATIONAL PLATFORM

Wines of British Columbia Brand Pillars

In BC, $42 of Economic Impact per Bottle of British Columbia Wine $29.92 BUSINESS REVENUE $7.50 WAGES $4.65 TAXES

BC Wine Tourism $476M In tourism revenue and employment revenue. Over 800,000 visitors annually.

A Canada EU Case Study The Canada-EU Wine and Spirits Agreement (CEWSA) was implemented in 2004 Since 2004, EU wine sales in Canada have grown by 29% & 71% in value The EU invests at least $8 million annually to promote their wines across Canada EU wines represent more than 51% of total Canadian import value and 43% of total Canadian import volume (valued at $1.2 billion in 2015) Canadian wine exports to the EU were valued at $2.77 million = $1B wine trade deficit in 2015 The BC wine industry supports free trade agreements however, without support to take advantage, our domestic market risks further erosion from foreign competition

Ripe for Growth Wine is the fastest growing beverage alcohol segment in Canada. Consumers want to Buy Local and support Canadian products but selection is often limited and dominated by imports: Only 2 provinces have exceeded a 10% VQA wine sales market share (ON and BC) 11 provinces and territories have VQA sales market share of 5% or less Wine demand in Canada is growing offering a 50 million litre sales opportunity over the next two years BC wineries must be able to seize this opportunity

VINTNERS INVESTMENT TAX CREDIT (VITC) Time-limited Vintners Investment Tax Credit (VITC) Available to any eligible grape winery to encourage investment in innovative, environmental and infrastructure investments A refundable or non-refundable 30% tax credit would be applied against federal income tax otherwise payable for eligible winery investment

VINTNERS INVESTMENT TAX CREDIT (VITC) VITC will Stimulate Private Investment: Based on an average 11.5% annual revenue growth for 100% Canadian wines VITC would provide a 17 fold return Double direct and indirect employment Grow the Canadian wine industry s national economic contribution from $7.8 billion to $19.7 billion over the period 2016-2026.

We Need Free Trade Across Canada Canadians expect and deserve to purchase wine with modern convenience When consumers visit a winery on vacation, they expect to be able to have their wine purchases shipped home BC wineries want to build a national consumer-base - it s still easier to ship wine to a customer in Hong Kong, than it is to most provinces and territories Removal of the remaining interprovincial barriers to wine trade will help the BC wine sector adjust, take advantage of, and prepare for a new state of global trade Progress in developing a new and modernized Agreement on Internal Trade (AIT) - disheartened to learn that alcohol may be excluded

Thank you.