2020 in review: BC wine pivots in the face of the pandemic

As fans and close observers of B.C.’s maturing wine growing sector, we were initially nervous as to how the producers would be impacted by the global pandemic. After all, many of the businesses are heavily dependent on tourism and their restaurant sales channels — both of which are being affected over fears of the spread of the novel coronavirus “SARS-CoV-2”. Yet, at the end of 2020 it wasn’t really the “COVID crisis” that left its mark on this year’s wines. Instead, it was that oldest of foes: Mother Nature. Cool temperatures in the springtime delayed the ripening of grapes, which were then subjected to wet weather in the fall (including a freak one-day snowfall). Many, but not all wineries reported a drop in production, which could drive up the cost of wines due to lower supply.

Those with a relatively long memory of weather patterns in B.C. wine country will remember the devastating one-two punch of cool, wet weather in 2010 and 2011. Yet a few of the province’s best wines resulted from those vintages, thanks to some savvy work in the vineyards and experienced winemaking. So while we might have lower volumes, it is anticipated that many exceptional 2020 B.C. wines are coming.

Mixed blessings and new opportunities

For B.C. wine, 2020 was a true mix of positive and negative events, which are worth listing. While not comprehensive, here is some of what we saw happening in the sector over the last year.

1. Growth in direct-to-consumer sales

When the global pandemic was declared and stay-at-home orders were established in March, one can only imagine what wine producers around the province — both small and large — must have felt. It probably ranged from fear to uncertainty over whether the season would be lost. What we did see among several producers was a growing reliance on their email subscriber lists and (if they had them) the members of their wine clubs. Early on, the sector took steps to grow direct-to-consumer sales. Several wineries offered free shipping to incentivize buyers who were stuck in their homes, and unwilling to venture out to a local government liquor store.

The amount of alcohol people were purchasing became a running joke on news and social media. While alcohol abuse cannot be condoned, and nor should it be considered a remedy for feelings of isolation, the increasing demand for and growing dependence on home delivery was an unanticipated benefit to the sector. The so-called international-Canadian blends (“ICB”) wines which ship in boxes or in bottles for under 10 bucks saw a surge in sales, but so did the premium choices offered by BC VQA authorized producers.

2. Tasting room fees and reservation systems established

Producers in many if not most of the world’s wine regions have already established a tasting fee, ranging from a few dollars or higher, with it being waived by some after a minimum wine purchase. B.C. wineries have long resisted the practice, fearing that it would drive customers – including lucrative bus tour groups – to their competitors. With the number of people allowed on site restricted by public health orders, wineries needed a simple and effective way to control the traffic — both in numbers and in timing of visits. Enter tools like “Tock” which gave winery tasting rooms the ability to book visitors in advance. Tock (and its competitors) took off in the province’s wine scene, with some producers reporting a significant growth in monthly revenue from visits. Not only were the tasting fees typically non-refundable, but it is reported that by pre-booking wineries attracted guests that purchased more wine. In previous years, some proprietors complained of anemic sales from tasting room visitors, while other guests just arrived for free alcohol. With new fees and the requirement to book an appointment, the experience improved significantly for seasoned wine travelers.

It is predicted that with reservation systems now in place there will be no turning back, even with a vaccine and (someday) the pandemic behind us. It will also lead to overall improvements in the quality of service, and provide a very important revenue channel for small wineries.

3. BC VQA celebrates 30 years

2020 was meant to be a defining year for B.C. wine thanks to the 30th anniversary of its BC VQA (Vintner’s Quality Alliance) standard that some credit in part for the growth in consumer confidence in indigenous wines in Canada. With a pandemic on, however, it was met with a less fanfare. The sector also began to get its collective act together by consolidating the branding of its leading marketing and lobbying organizations. In September, the BC Wine Institute membership approved a motion to change the organization’s name to Wine Growers British Columbia to align with its federal counterpart Wine Growers Canada. The proposed launch of the organization’s new brand is set for 2021.

4. Ownership and growing investments

While 2020 did not see the kind of major shifts in ownership as in years past, the level of investment into B.C.’s Okanagan wine region is reaching staggering levels. A rough back-of-the-napkin estimate suggests between $500 million to $1 billion has been spent by a group of well-financed domestic and international players into the B.C. wine scene. It has not happened overnight though, and the number of new hectares of land being put to vine has been hard to miss. In the Central Okanagan, for example, O’Rourke Family Vineyards and the new Frind Winery have brought in giant machines to reshape farmland for planting, and even build tunnels through rock to cellar wines! Frind turned heads this year by making a bold claim that a new vineyard in the northern Vernon region of the Okanagan Valley would be able to ripen Cabernet Sauvignon, which is usually only grown in the warmer southern parts of the region.

Others making a big bet on B.C. wine are long-established Canadian wine companies Andrew Peller Limited and Von Mandl Family Estates, with the latter launching several premium wine labels and a recent opening of a new restaurant venue at Cedar Creek Winery. In addition to the noteworthy investor/ownership changes happening up and down the Okanagan Valley, 2020 also saw the grand opening of the lavish Phantom Creek winery tasting room on the Black Sage Bench.

Despite all that capital flowing into B.C.’s wine scene, smaller family-owned wineries continued to compete both on quality and by having a compelling story about their wines. The good news overall is that interest is growing in B.C. as an international wine travel destination, and the reputation of the wines is booming among many reputable oenophiles.

5. Liquor laws updated in response to COVID

Time will tell how much impact a significant regulatory change made by the B.C. government on wine pricing for restaurants will have, but needless to say it was seen as a critical lifeline to struggling businesses in the hospitality sector. To explain it, here’s what wine law expert Mark Hicken says:

Prior to July 20, 2020 (and for decades prior to this), it was an LDB-mandated requirement that BC’s hospitality industry (restaurants/bars/hotels) purchase all alcohol for their businesses at either the full LDB retail price (for products listed in BCLS government stores) or at the hospitality price (for products not listed in BCLS government stores). The latter price was a price set by the LDB which approximated a retail price since it added a “hospitality margin” to the product’s registered wholesale price (i.e. the one offered to retailers). The hospitality margin varied from product to product but is thought by industry to average about 20%. The only exceptions to the above were: 1) land-based wineries were permitted to set their own hospitality price (i.e. they could sell to hospitality customers at their registered wholesale price if they chose to do so), and 2) hospitality licensees did not pay PST on their purchases since that tax is levied on the end-consumer during the final retail purchase.

The new system means that from July 20, 2020 through March 2021, hospitality licensees will be permitted to purchase alcohol at the same registered wholesale price that is offered to all retailers. In other words, restaurants/bars/hotels will now be treated as full-fledged wholesale customers of alcohol suppliers. This will create a normal wholesale pricing system, similar to those that exist nearly everywhere else in the world, including our neighboring jurisdictions of Alberta and Washington state. 

6. Keeping connected during the pandemic

While COVID was a kick in the teeth for everyone’s in-person gatherings, it did require all of us to find new tools to keep in touch. Those of us who refused to let the virus cut us off from discussing wine moved the dialogue online. The #BCWineChat on Twitter, for example – begun by wine industry pioneer Sandra Oldfield – brings people together to weigh in on great topics each week.

Smaller groups kept regular industry chats going with the help of videoconferencing.

Mark Hicken — whose aforementioned blog at winelaw.ca is strongly recommended for analysis of this important part of the wine business in B.C. and Canada — and Canadian wine industry analyst Karen Graham (be sure to bookmark winedrops.ca) are members of an ad hoc group dubbed the Wine Roundtable. Other members include Vancouver International Wine Festival executive director Harry Hertscheg and the effervescent wine connoisseur and industry consultant Tania Tomaszewska (ttwinecounsel.com), who joined after the meetings moved online in 2020. My lovely partner and fellow BC Wine Lover Stacey and I participate in these monthly meetups as well.

Zoom Wine Roundtable — December 2020

The group felt that it was time to try to broaden the dialogue to include many other friends as a way to close out a difficult year. In the final week of 2020, the Wine Roundtable was able to “go big” with dozens of people attending a 2-hour Zoom meetup. Insiders from B.C.’s wine and culinary scene, as well as old friends weighed in for a few minutes each on their biggest takeaway of the year. The response was very positive and we anticipate doing another in the not too distant future.

7. Great culinary choices emerge in B.C. wine country

It used to be that dining in the Okanagan and Similkameen Valleys was a limited affair. That has truly changed, however, and in recent years we have seen appetizing choices for lunch and dinner emerge. This summer Stacey and I were able to stop at three eateries we would like to recommend, including Naramata Inn, The Kitchen at TIME Winery in downtown Penticton, and Row Fourteen Restaurant at Klippers in Cawston. Each has a kitchen staffed by a talented culinary team, with diverse menus able to please practically any appetite. Naramata Inn boasts a superlative wine menu that features some of the best of the Naramata Bench. TIME winery was launched by the late Harry McWatters and his daughter and business partner Christa-Lee McWatters, who remains as general manager after an ownership change. Row Fourteen is co-located with Untangled Cidery in the middle of an orchard. If you didn’t have good directions, you might not even know it is there. When you arrive you’ll be glad you did, however. Now closed for the winter, check their websites for reopening times.

Our #BCwine moments on video

While we don’t get much time to post here at bcwinelover.com as much as we’d like, we do appreciate everyone who follows us on our blog, Twitter, Facebook, Instagram and YouTube channels. Last summer Stacey and I made our 17th annual extended visit in B.C. wine country. We capture many of our stops in the short video embedded below. Many thanks to our friends, as well as everyone who makes, sells or serves unforgettable wine in our province. A shoutout to the wineries listed below and their amazing staff, who made our 2020 wine travels in B.C. feel safe and special. Please visit them in person if you can, or purchase their wines as we must support British Columbia’s dynamic wine scene.

1 Mill Road Vineyard (Naramata Wine Vault)
Bartier Bros. Winery
Bella Wines
Black Market Wine Co.
Cassini Cellars
Clos du Soleil Winery
Corcelettes Estate Winery
Daydreamer Wines
Fairview Cellars
Fitzpatrick Family Vineyards
Hillside Estate Winery
Howling Bluff Winery
Liquidity Winery and Bistro
Meyer Family Vineyards
Noble Ridge Winery
Okanagan Crush Pad
Painted Rock Estate Winery
See Ya Later Ranch Winery
SKAHA Vineyard
Spearhead Winery
Stag’s Hollow Winery
Tightrope Winery
TIME Winery
Van Westen Vineyards
Vanessa Vineyard
vinAmité Cellars

** please do us a favour and click here to SUBSCRIBE to our YouTube channel as we plan more video content in 2021.