Last: Rough waters ahead for B.C.’s wine industry

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Last year I wrote a piece for the Herald on climate change and how it’s impacting the wine industry and, since then, I’ve had people asking me if they should be stocking up now. I feel strongly that the answer is an unequivocal yes. Climate change is more than global warming; it’s about extreme weather systems across the board. At the risk of overstating the obvious, Alberta and B.C. are seeing these extremes now, with devastating consequences.

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I’ve been trying, with some difficulty, to get accurate numbers on the losses incurred in B.C. because of the two deep freezes that drastically reduced the size of this year’s harvest, with estimates between 60 to 90 per cent reductions as a result. As devastating as those losses are, the bigger issue is the extent of vine kill, which occurs after prolonged deep freezes.

Grape vines are remarkable survivors insofar as crops go. They can tolerate drought and scrubby soil conditions, and if the notion that what doesn’t kill you makes you stronger holds any water, then that is personified in grapes. Historically, the best vintages in Bordeaux were from so-called drought years. Bordeaux has a maritime climate, so wet, cool vintages were not uncommon and, as such, drought years tended to deliver, ripe, concentrated wines that are considered classics. Bordeaux winemakers started to reevaluate that theory as far back as 2003, when record heat delivered wines that were high in alcohol and, in some cases, over-extracted.

In France’s AOC-regulated regions, and that’s most of them, irrigation is not permitted, another rule that will have to change if the vines are going to survive. In the Okanagan, excessive heat is not uncommon, and anyone who has spent time out there in the summer will likely have experienced temps into the high 30s, especially at the southern end of the valley (the tip of the Sonoran Desert, in fact). What is not normal is -25 C for an extended period in January, and the impact of that is going to ripple throughout B.C.’s wine industry for many years to come.

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I spoke to my long-time friend and B.C. winemaker Mireille Sauve about the situation, and the news is not good. She’s the winemaker at Lakeboat Winery in Kaledon and makes a range of wines under her Wine Umbrella label. They are in the process of replanting after their merlot vineyard – which was awarded a gold medal in a recent competition – was wiped out completely. The remaining vines are largely without fruit, but alive, for now. Whether they rebound and survive the winter remains to be seen, and that wait-and-watch approach is consistent across the valley. One thing she and other winemakers have noticed is that there is a random level of attrition in many of the vineyards. Some appear to have survived while the vine next to it is dead or dying. One thing is certain, there will be very little wine produced this year and, for most, it’s a wait-and-see approach to next year. Some have decided to pack it in and sell, but there is a considerable amount of wealth in the Okanagan as well, who will likely soldier on. Those who have to replant will be looking at three to four years before the vines bear useable fruit, and even longer for quality red wines. This is a $3.75-billion industry, and it’s tragic in so many ways.

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The good news, and there is some, is that most wineries have wine to sell, and will for a couple of years. Some are bringing in grape juice from places like Washington and Ontario, and those wines will bear a label that says “bottled in B.C.” Another bright note is the dispute between Alberta and B.C. regarding direct shipping has been resolved. There was a lot of erroneous information being spread around on this matter but at the crux of it is this: shipping alcohol directly to consumers between provinces is, for the most part, illegal. It’s all about tax as each province sets rates and collects taxes, respectively. Alberta uses a flat tax system, so we pay $6.56 per litre in tax, regardless of the cost of the wine. That gives us a distinct advantage on premium products, as we pay the same amount of tax on a $12 wine as we do a $1,000 wine. A VAT (value-added tax) is the dominant tax system in most places, which provides an advantage for inexpensive products that quickly erodes as you move up in price. Wine retailers and distillers in Alberta can be fined heavily for shipping to Ontario without going through the LCBO, for example. The solution between Alberta and B.C., as I understand it, was to set up a “virtual warehouse”, as they are calling it, which will allow Alberta to collect its precious tax on wines shipped directly to consumers.

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It’s clear there are going to be many challenges ahead for the wine industry, and B.C. has experienced this firsthand. As our neighbours, we can show support by buying these wines and visiting the region, and there are plenty of good reasons to do both. In B.C., those who must replant can focus on varietals that are better equipped to handle extremes, while taking advantage of recent technologies being developed to help cope with climate change. Cheers!

Geoff Last is a long-time Calgary wine merchant writer, instructor, and broadcaster. He can be heard every Friday on CJSW’s Road Pops program between 4 -6 p.m. Media inquiries can be directed to lastcallforwine@gmail.com

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