Ont. tries to boost local wines

The provincial government says it is moving toward clearer labelling to make it easier for consumers to buy wine made from Ontario grapes and to boost the local wine and grape growing industries.

The government announced Tuesday it will work with winemakers and the LCBO to make signage and labels differentiate between wine made from 100 per cent Ontario grapes and wine made of a blend of local and foreign grapes.

It will also increase the content of Ontario grapes in blended wines and raise taxes for wines that aren't made up of 100 per cent Ontario grapes.

"This is a significant step forward, this is a new policy direction for the government and we're glad to see it," said Rick Smith, executive director of Environmental Defence.

"The clear message to wine companies today is: Any tax advantage, any advertising advantage in LCBOs that currently exist for 'Cellared in Canada' wines is going to disappear in the next couple of years. "

Grape farmers and their supporters have long complained that the current "Cellared in Canada" label is misleading, because it gives people the impression they are buying local wine when they are in fact only buying wine cellared in the country.

That's different than wine bearing the Vintners Quality Alliance, or VQA, designation — which ensures the wine is made of 100 per cent Ontario grapes.

Environmental Defence had staged a grape-stomping outside a flagship LCBO store in Toronto in July to highlight the plight of grape growers, who say about eight thousand tonnes of Ontario grapes will rot on the vine this year because there's not enough wine purchased to allow those grapes to be harvested.

The changes, Smith said, will immediately increase the content of Ontario grapes in "Cellared in Canada" wine to 40 per cent and change labelling to make it less misleading.

The plan also includes a longer term strategy that will take away tax advantages previously given to "Cellared in Canada" wine.

'Cautiously optimistic'

Ed Madronich, chair of the Wine Council of Ontario, said his group had proposed several of the changes being adopted and was glad to see the government working toward a long-term plan for the industry.

"We really see it, overall, as a step forward for our industry and are cautiously optimistic that we're going to see a lot of great changes," he said.

The council supports both categories of wine, however, and has a few concerns about the tax changes for "Cellared in Canada" wines.

"Historically the government has invested in our industry, and we're a little bit disappointed that they've transitioned that investment to a tax on a few of our 'Cellared in Canada' members."

"When the government invested in General Motors, they didn't really pay for it by taxing Toyota."