TORONTO – Ontario's vintners and brewers are expressing enthusiasm regarding the support outlined in the province's latest budget, describing it as a vital measure to stabilize the industry during uncertain times.
The government is set to introduce the Ontario Grape Support program, which aims to double the proportion of Ontario grapes in blended wines. With a budget allocation of $175 million over five years, this initiative is expected to increase the use of Ontario grapes in international and domestic blends dramatically, thereby providing a safety net for both wineries and grape farmers. Aaron Dobbin, president of Wine Growers Ontario, emphasized its significance, stating, “This is a huge day for us.”
Currently, blended wines must contain at least 25% Ontario grapes, mixed with wines sourced from countries like Italy, France, and the United States. These blended wines are more affordable compared to traditional wines, enabling Ontario vintners and grape growers to compete effectively with international brands retailing around $10 a bottle. “It will significantly increase demand for Ontario grapes, which will help farmers,” Dobbin noted. The initiative will also focus on hardier grape varieties that are better suited to withstand adverse weather conditions.
While specific details regarding the program are still being finalized, the Ontario government is also enhancing the Vintners Quality Alliance wine support program. This $84 million annual initiative aids wineries in expanding their operations by offering rebates on products sold through the Liquor Control Board of Ontario (LCBO). Notably, this rebate will now extend to sales made directly at wineries, which is particularly beneficial for smaller establishments reliant on direct sales.
The craft brewing sector is equally optimistic about the province’s initiatives. The government is providing financial relief to microbreweries by slashing the microbrew tax rate and the LCBO mark-up by 50%. Natasha Fritzley, president of Cowbell Brewing in Blyth, Ontario, and a board member of Ontario Craft Brewers, stated that these changes have brought much-needed stability to the industry. “Was I happy and thrilled with what the government delivered on for us? We truly were; it’s very meaningful,” said Fritzley.
Fritzley further explained that these tax adjustments will not only foster tourism but will also create job growth within Ontario. The positive financial outlook has prompted her brewery to invest in a new 10,000-square-foot warehouse and upgrade their pasteurization facilities, showcasing confidence in the provincial support. “What it does is it gives us that breathing room and confidence to say, ‘Hey, this is an environment that we’re willing to invest in despite the unknown,’” she added.
Amidst ongoing challenges posed by international factors, such as U.S. President Donald Trump’s tariffs and trade disputes affecting Canada’s alcohol industry, Ontario's initiatives may help mitigate some negative impacts. The tariff on Canadian aluminum, crucial for beer can production, has created price volatility, affecting profitability for breweries. Fritzley noted that, although her sales have not yet surged, there is potential for increasing business as Ontarians may turn more towards local products in response to these tariffs.
In a bid to capitalize on these dynamics, Ontario Premier Doug Ford has proposed legislation aimed at facilitating free trade with other Canadian provinces. Traditional restrictions on alcohol sales between provinces have been a long-standing issue, but this new framework will permit direct-to-consumer sales where reciprocal laws exist. Premier Ford has already signed free trade agreements with Nova Scotia, New Brunswick, and Manitoba, and is seeking to establish similar arrangements with remaining provinces and territories.
Such measures could open new sales opportunities for Ontario's wine and beer producers. Aaron Dobbin noted that smaller wineries that focus on higher-priced wines will particularly benefit from these enhanced sales channels. Overall, Ontario’s new support programs for its vintners and brewers signal a promising shift toward strengthening the local industry amidst evolving market conditions.
