New Study: Canadian Wine Revenue $472 Million
A study from the Canada Vintners Association released yesterday reveals the health of the Canadian wine industry. The report also speaks to the unrealized potential for the Midwest wine industry. Among the findings:
- Canada currently produces 44 million gallons of wine per year. By comparison, the 11 state area that Midwest Wine Press covers has estimated wine production of 6 million gallons a year. The population of Canada is just over 34 million compared with the Midwest’s population of over 69 million.
- How does Canada sell so much wine without large exports? The answer is that the Government of Ontario, where over a third of Canadians live, requires 40% domestic grape content in so-called “Cellared in Canada” wine. (Cellared in Canada wine is a blend of Canadian wine and imported wine.) However, in 2014, the domestic production requirement in Ontario expires, which might have something to do with the timing of the study.
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- There are 476 wineries in Canada according to the study. From the study, it can be extrapolated that the “average” Canadian winery produces about 86,000 gallons a year. Even after taking into consideration that Constellation Brands’ Niagara Cellars, Canada’s largest winery, produces 500,000 cases a year according to Wine Business Monthly, the average Canadian winery is bigger than the average Midwestern winery.
- Total winery revenue in Canada is almost $472 million during 2011 for 100% Canadian wine. Of this total revenue, over a third is generated in Ontario.
- Drilling down further into the study, 90% of the grape growing volume of the Ontario wine industry is in the Niagara Peninsula. Of course, the Niagara Peninsula has wine grape growing conditions that are similar to the Great Lakes wine growing regions of the U.S.
For more information see the Canadian Vintners Association website