Alberta, BC Agree on Digital Warehouse for Inter-Provincial Wine Sales

Bottles of British Columbia wine on display at a liquor store in Cremona, Alta., on Feb. 7, 2018. The Canadian Press/Jeff McIntosh

Alberta and British Columbia have settled a six-month trade dispute over wine sales between the provinces by agreeing on a virtual marketplace for their products.

The battle began in January after Alberta Gaming, Liquor and Cannabis (AGLC) sent letters to B.C. winemakers indicating they were not allowed to sell directly to customers.

AGLC said it was banning inbound shipments from wineries unless the producers agreed to stop shipping directly to consumers. It said the move was to maintain the integrity of Alberta’s liquor model and to protect retailers and liquor agents in the province.

On July 16 Alberta Premier Danielle Smith and B.C. Premier David Eby announced they had signed a memorandum of understanding that will permit wine producers in each province to sell directly to consumers.

Premier Eby said he was pleased that wine producers in B.C. would be able to resume direct sales to Alberta residents. He called the B.C. wine industry a “source of pride in British Columbia.”

One of the concerns Alberta had with direct-to-consumer sales was wine producers being able to avoid paying tax, according to an Alberta Government news release.

The release said “those issues have now been addressed.”

Premier Smith said the government was concerned about “fair treatment” between retailers.

“If you’re going to be selling into our market, you have to be treated the same way as every other person who is buying it through a liquor store,” she said during a news conference.

“We’re going to create a virtual warehouse to make sure that those fees are collected and rebated and we’re going to work to see if we can also find ways to expand the offerings in both provinces and I think that’s an important step to try to make sure that the producers of wine in both provinces have an opportunity to sell in both markets.”

As part of the agreement, a bilateral working group between the provinces will be established to facilitate access to B.C. wines electronically, according to an Alberta government news release.

“The agreement also means that we can ensure consistent charges are applied to all wines sold in Alberta,” Premier Smith said, adding that the agreement will be reviewed in a year.

“We‘ll take a look at how things are working, and we’ll revisit our agreement,” she said.

The Greater Vancouver Board of Trade welcomed the news.

“This announcement brings welcome stability to B.C.’s award-winning wine industry,” Bridgitte Anderson, president and CEO of the board, said in a statement emailed to The Epoch Times. “Together, consumers in Alberta, Saskatchewan, and Manitoba consume over 62 million litres of B.C. wine each year.

Wine Producers Celebrate News

The Wine Growers of British Columbia welcomed the inter-provincial agreement. “This announcement could not come at a better time,” said president and CEO Miles Prodan in a statement on the organization’s website.

“The end of the Calgary Stampede marks the unofficial start of summer when visitors from Alberta flock to BC, with many of them including a visit to their favourite BC wineries in their travel plans to enjoy amazing winery events and savour the abundance of 100% BC wines available.”

The wine growers had questioned “the political motivation” behind the complaint in January, saying “a working free-trade relationship between Alberta and British Columbia is imperative to the economic wellbeing of the entire country.”

The Canadian Press contributed to this article.