Three months since the implementation of Alberta’s new wine fees, B.C. wineries are beginning to feel the impact as lost sales accumulate, despite a trade agreement allowing Albertans to purchase directly from B.C. wine producers.
The fees were introduced amidst efforts by governments to reduce inter-provincial trade barriers in response to ongoing tariff threats from U.S. President Donald Trump. Although Alberta is often recognized for its efforts in enhancing trade, the additional costs are affecting B.C. wineries significantly.
Ron Kubek, the owner and CEO of Lightning Rock Winery in Summerland, B.C., expressed that Alberta’s fees, adding around 30% to a $30 bottle, hinder potential business growth. Similarly, Joshua Kim, the hospitality manager at Bench 1775 Winery in Penticton, B.C., noted that online sales could have been 30 to 40% higher without Alberta’s fees.
The optimism for increased sales this summer through a new program enabling direct B.C. wine sales to Alberta consumers has been dampened by the introduction of higher fees. Alberta’s flat fee increase on wine and the additional charge on bottles exceeding $11.25 have made Alberta wine pricing the most expensive in North America, as per the Alberta Hospitality Association.
Jeff Guignard, CEO of Wine Growers British Columbia, criticized Alberta’s tax policies on wine, emphasizing that while barriers were removed, new taxes have been introduced, affecting trade adversely. He highlighted the confusion and complexity of the tax system, which may lead some wineries to skirt the rules.
Despite Alberta’s commitment to open trade, the new fees impact B.C. and Ontario wines disproportionately due to the pricing structure. Alberta’s move to resume selling U.S. alcohol earlier this year contrasts with the ongoing trade disputes between the two countries.
The conflicting messaging from Alberta Premier Danielle Smith, who promotes business openness while imposing new taxes, has left wineries feeling penalized. Kubek criticized the situation, stating that selling wine in the U.S. is now more economical than in Alberta, undermining the province’s efforts to champion free trade.
While internal trade improvements are noted within Canada, Alberta’s standing in removing barriers has declined. The absence of legislation adopting mutual recognition has hindered progress in aligning standards and regulations across provinces, impacting trade facilitation.