An interprovincial wine war is fermenting after Alberta害羞草研究所檚 liquor wholesaler told vintners in British Columbia that it won害羞草研究所檛 stock their products in retail stores unless they stop shipping it directly to consumers.
害羞草研究所淭hey are really making a threat,害羞草研究所� said Al Hudec, a lawyer hired by winemakers to push back against the Alberta move.
害羞草研究所淭he B.C. wineries are not breaking any laws in Alberta. This is just muscling the wineries.害羞草研究所�
Last week, Alberta Gaming, Liquor and Cannabis, which regulates the sale of liquor in the province by controlling wholesale and distribution, sent a letter to wineries in B.C. It said the agency had been investigating the practice of consumers in Alberta ordering wine directly from B.C. wineries instead of buying it in Alberta stores.
害羞草研究所淥ur investigation found tangible evidence of (your winery害羞草研究所檚) involvement in (direct-to-consumer) shipping of wines across provincial borders in Alberta,害羞草研究所� said one of the letters, shared with The Canadian Press.
害羞草研究所淭o maintain the integrity of Alberta害羞草研究所檚 liquor model and to protect the interests of Alberta retailers and liquor agents, AGLC will not accept any inbound shipments from (your winery) from this date forward. We will resume acceptance of inbound shipments if, by way of written notice, (your winery) agrees to immediately cease (direct-to-consumer) shipping operations to Alberta.害羞草研究所�
That害羞草研究所檚 corked, said Hudec. He said Alberta is trying to impose its regulations on another province.
害羞草研究所淧rovinces only have jurisdiction over people in the province and activities in the province. Any enforcement action has always been brought against individual consumers, not the wineries.害羞草研究所�
What害羞草研究所檚 more, he said the Alberta letter isn害羞草研究所檛 fair.
害羞草研究所�(It) alludes vaguely to some breach of the law but they don害羞草研究所檛 give you the particulars. They don害羞草研究所檛 give you a chance to respond, they don害羞草研究所檛 give you a chance for a hearing.
害羞草研究所淭hen they impose this penalty they don害羞草研究所檛 have any authority under the legislation to impose. It害羞草研究所檚 totally offensive to administrative fairness.害羞草研究所�
Hudec said the Alberta move could be vulnerable to a judicial review.
B.C.害羞草研究所檚 Ministry of Public Safety and Solicitor General, in a statement Wednesday, said it was 害羞草研究所渁ctively engaging with the government of Alberta to address the issue and navigate shared concerns related to interprovincial direct-to-consumer wine sales for the benefit of the industry and consumers.害羞草研究所�
John Skinner of Painted Rock winery in Penticton, B.C., said Alberta害羞草研究所檚 move couldn害羞草研究所檛 come at a worse time. Freak cold weather has devastated grapevines throughout the province for a second year in a row.
害羞草研究所淭he industry is on its heels,害羞草研究所� he said. 害羞草研究所淲e害羞草研究所檇 like a little consideration from our provincial friends.害羞草研究所�
He estimated about 10 per cent of his sales are directly to consumers in Alberta.
害羞草研究所�(The move) doesn害羞草研究所檛 represent the Alberta people,害羞草研究所� he said. 害羞草研究所淲e have a lot of Albertan wine club members.害羞草研究所�
Wines of British Columbia has written its own letter back to Alberta.
害羞草研究所淭he letters raise serious concerns for both the individual recipients and for Alberta-British Columbia trade relationships generally,害羞草研究所� says the Jan. 24 document.
害羞草研究所淭he AGLC has no authority, within the legislation that it administers, to impose this interprovincial trade restriction.害羞草研究所�
Karin Campbell, spokeswoman for the Alberta commission, said in an email the agency is trying to protect Albertans.
害羞草研究所淪uppliers from other provinces that offer direct-to-consumer shipping are in contravention of provincial legislation, are bypassing Alberta害羞草研究所檚 private liquor retailers and liquor agencies and are impacting the dollars that go to the general revenue fund,害羞草研究所� she wrote. 害羞草研究所淲ith no oversight, AGLC cannot ensure that these products are being sold only to adults over the age of 18.害羞草研究所�
Dale Nally, the United Conservative cabinet minister responsible for the agency, did not respond to a request for comment.
B.C., Manitoba, Saskatchewan and Nova Scotia allow consumers to order out-of-province wine directly from producers.
In Manitoba, a 2018 study commissioned by Wines of British Columbia found allowing direct-to-consumer didn害羞草研究所檛 affect retail sales. It found overall wine sales in the province grew faster than the national average after direct sales were allowed.
It estimates direct-to-consumer counts for less than three per cent of wine sales, with most of that involving high-end bottles that aren害羞草研究所檛 even available through government channels.
Direct sales are a long-standing issue for Canadian producers of alcoholic beverages. A 2018 Supreme Court decision found provinces had the right to restrict purchases that didn害羞草研究所檛 go through provincial licensing agencies.
Hudec said that害羞草研究所檚 part of the reason Canadians consume a lower proportion of their own wines than any other wine-producing country.
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