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June 2, 2003 - Strategy Magazine
News

B.C.'s grape success
Tourism tie-ins grow VQA wine sales by 24%

by Kristen Vinakmens
page 1

While wine may still be considered more of a special occasion beverage than an everyday one in Canada, there's no doubt that we're imbibing more of the stuff.

According to the Ottawa-based Canadian Vintners Association, total wine sales in Canada rose nearly 28% in the last five years - from $211 million to close to $269 million.

But while imported wines remain the leaders, the domestic varieties are witnessing a boom, particularly in British Columbia. According to the B.C Wine Institute, B.C. Vintner's Quality Alliance wines - VQA meaning those that are 100% British Columbian and meet the Alliance's standards - have achieved 24% growth in the last fiscal year, which represents about $6 million in VQA store sales.

Growth in the sector is being spurred by wines of higher quality, due to a couple of especially good seasons, says B.C. wine consultant Frank Leffelaar of Vancouver-based Crush Marketing. But much of the success can also be attributed to a number of organizations working in tandem to raise awareness of B.C. wines and the Okanagan Valley region itself, which is where the majority of B.C. wineries are located.

Wine tastings and events seeking to educate the consumer, and a greater focus on linking winemaking to tourism and the arts, are effectively boosting sales of domestic wines.

One of the biggest players in promoting B.C. wines is the Kelowna-based B.C. Wine Institute. Out of the 72 wineries in British Columbia, 54 of them are members of the organization, which was created in 1990 to raise awareness and increase distribution.

The marketing emphasis is on VQA wines. There are currently 11 VQA stores in British Columbia and Dawn Antle, marketing manager for the B.C. Wine Institute, says there are plans to have 20 locations by the end of the year.

The VQA stores sell only B.C.-made wines and are marketing platforms unto themselves: a different winery is featured each week, and consumers can chat with the vintners in-store. Says Antle, "[The stores] offer a forum for consumers to taste the wine and an educational component, which, according to our research, is exceptionally important."

The Institute is embarking on an advertising campaign in early June that will be featured in B.C. liquor stores and in wine magazines such as Wine Access. The advertising, by Kelowna-based Madhouse Creative, features a painterly rendering of a couple enjoying wines in the Okanagan, with the tagline, "Visit the vineyards the world is talking about."

The B.C. Wine Institute is also putting a major focus on tourism. It is part of the Wine and Cultural Tourism Alliance and other related associations. Along with the Thompson Okanagan Tourist Association (TOTA), and the Okanagan Wine Festivals Society, the Institute produced the Wine and Culture Guide earlier this year.

The guide includes facts on the Okanagan region, wine festival information and a wine touring map and is being distributed throughout the country and internationally, with a strong focus on the Washington market.

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