Ontario Wine Trip

Canadian had been making wine for more than two centuries; with high quality wines especially the premium wines produced in Niagara fall region Ontario capture both domestic and international recognition not only in sales but also by garnering an impressive list of significant wine awards.

Especially small and family based wineries, they produced unique inimitable flavor wine product and achieve great success in the past, but now days, like other food producers and manufacturer, most of small-median sized wineries especially small-median sized firm in Ontario were facing many key industry challenges.

Ontario glory

Canadians have been making wine for more than two centuries, but Canada’s modern day success in the production of high-quality vine-based wines went back only a quarter of the century. The signing of the North American free trade agreement in 1988, with the ruling within the general agreement on tariffs and trade (GATT), required Canada to abandon the protection it offered its wine industry. New vineyards were planted with only the finest varieties of grapes Chardonnay, Riesling, Sauvignon Blanc, Pinot Gris, gewürztraminer, pinot Noir Cabernet sauvignon, Merlot and others.

Canadian quality wines especially the premium wines produced in Niagara fall region of Ontario began to capture both domestic and international recognition, not only in sales but also by garnering an impressive list of significant wine awards.

Market Overview

Like other food producers and manufacturers, most wineries especially the small-median sized firm in Ontario were facing 3 key challenges:

• Our strong dollar and US recession, reduced purchase power directly affecting our wineries export volume. The United States was the largest market with new world wines sales of 12 billion.
• Extremely competitive in the domestic market, since established corporations possesses extensive production experience and financial resources produce more efficiently therefore, increases the level of domestic price-based competition.
• Internationally, grape surpluses in various regions of the world, resulting in many lower-priced subsidized imported wines that enter into the Ontario market.

The market was consolidating in terms of its retail, wholesales and production operations. One key to success seemed to be distribution channel with marketing and new market penetration.

Image selling your wine to "WAL-MART"

• Chinese grape wine market between CNY 40 and 70 billion (roughly $5 - $9.5 billion) in 2006.
• Overall volume of sales for grape wine with a 6% increase from 2005 to 2006.
• Chinese GDP Growth in 9% annually and will stay at this constant percentage for next five years.
• New trend and social fashion of wine consumption.
• Canadian ice wines are extremely popular in middle class and wealthy consumer group.

Who seized the opportunity in China?

Australian winery achieved a remarkable success in Chinese market Australian wine industry was structured to be able to deliver large quantities of high-quality braded wine to international markets at costs less than many of their competitors. Australia had a very limited domestic market with a population of 18 million (around half of Canada�s population), the wineries realized that if the industry was to continue to grow it would have to do so internationally

Impact for Ontario

JJICA has done extensive research and recognizes the vast opportunity that exists in this Agri-Food trade show. More specifically we foresee an emerging demand in wine from Chinese consumers in which Canada is very well positioned to take advantage of. Our intention is helping our winery business to develop relationships with Chinese buyers, distributors and retailers and understand their specific needs.