Elevating Niagara's wine industry to new heights is as straightforward as engaging with local legislators. Grady Peller, the senior manager of corporate strategy and marketing transformation at Andrew Peller Ltd., emphasized this sentiment during a gathering of approximately 35 stakeholders from the wine and tourism sectors. The event, hosted by the Niagara-on-the-Lake Chamber of Commerce at Ravine Vineyard's conference centre, served as an occasion to delve into insights from the recently unveiled Niagara Uncorked study by Deloitte Canada. The report projects a potential $8 billion surge in wine-related economic growth for the region in the years ahead.
Within this context, Peller and Del Rollo, the vice president of corporate affairs at Arterra Wines, highlighted facets extending beyond statistics. They underscored the collaborative efforts of growers, wineries, restaurants, accommodations, cultural industries, and tourism-related organizations striving for a shared vision. Peller noted Deloitte's analysis indicating the wine sector's pivotal role in present and future economic expansion. The alignment of grape growing, winemaking, and hospitality experiences has proven successful in acclaimed regions such as Napa Valley, Bordeaux, and Tuscany, setting a benchmark to which Niagara aspires.
The Deloitte study suggests Niagara's potential for global success, situated near Niagara Falls and boasting a burgeoning hospitality industry along with esteemed academic institutions like Brock University and Niagara College. Despite this promise, challenges persist. Peller highlighted that Niagara cultivates 90 percent of Ontario's grapes and 80 percent of the country's, but the province faces an alarming distinction: the world's highest taxed wine region. The burden of a 6.1 percent tax on wines sold at wineries poses challenges for smaller producers.
The call to action resonated further as Rollo, citing the substantial contribution of the industry to government coffers, advocated for revising these punitive tax policies. The plea for change was echoed by fellow industry members, including Niagara Falls MPP Wayne Gates and George Lepp, president of Lepp Farms. Frustrations centred around issues like shelf space and fragmented jurisdiction across government ministries in Ontario.
The meeting concluded with a collective determination to mobilize support. Rollo and industry leaders urged proactive engagement, inviting stakeholders to share the narrative of Niagara's potential, address taxation concerns, and initiate meaningful change through letters and advocacy efforts. As stakeholders navigate challenges and seek to propel the wine industry to greater heights, the shared goal remains clear: to cultivate a vibrant, successful, and globally renowned Niagara wine landscape.
Video Summary:
Niagara's wine industry and tourism stakeholders are uniting to pursue a common goal, inspired by the findings of the Deloitte study. The study highlighted the significant contribution of the wine industry to Ontario's GDP, with an estimated potential for an astonishing $8 billion annual economic growth if fully realized. The aim is to emulate renowned wine regions like Napa, Bordeaux, and Tuscany, and the initial steps involve collaborative efforts and addressing taxation challenges.
One of the central issues hindering the wine industry's growth is the 6.1% wine tax imposed on sales at wineries. The tax, which is not applicable in other prominent wine regions, impacts the financial sustainability of wineries, particularly smaller ones that struggle to meet the requirements for retail placement at the LCBO. Industry stakeholders are advocating for the complete abolition of this tax, recognizing that it places unnecessary strain on smaller wineries that may produce exceptional wines but fall short of the LCBO's minimum production thresholds.
The collaborative movement seeks to create a more favourable environment for Niagara's wine industry by eliminating barriers such as the burdensome tax and facilitating greater opportunities for wineries of all sizes to thrive and contribute to the local and regional economy.
