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Alberta uncorks wine flex that leaves B.C. vintners feeling sour

Alberta liquor branch threatens not stocking B.C product from wineries selling directly to consumers

An interprovincial wine war is fermenting after AlbertaB次元官网网址檚 liquor wholesaler told vintners in British Columbia that it wonB次元官网网址檛 stock their products in retail stores unless they stop shipping it directly to consumers.

B次元官网网址淭hey are really making a threat,B次元官网网址 said Al Hudec, a lawyer hired by winemakers to push back against the Alberta move.

B次元官网网址淭he B.C. wineries are not breaking any laws in Alberta. This is just muscling the wineries.B次元官网网址

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.

B次元官网网址淥ur investigation found tangible evidence of (your wineryB次元官网网址檚) involvement in (direct-to-consumer) shipping of wines across provincial borders in Alberta,B次元官网网址 said one of the letters, shared with The Canadian Press.

B次元官网网址淭o maintain the integrity of AlbertaB次元官网网址檚 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.B次元官网网址

ThatB次元官网网址檚 corked, said Hudec. He said Alberta is trying to impose its regulations on another province.

B次元官网网址淧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.B次元官网网址

WhatB次元官网网址檚 more, he said the Alberta letter isnB次元官网网址檛 fair.

B次元官网网址(It) alludes vaguely to some breach of the law but they donB次元官网网址檛 give you the particulars. They donB次元官网网址檛 give you a chance to respond, they donB次元官网网址檛 give you a chance for a hearing.

B次元官网网址淭hen they impose this penalty they donB次元官网网址檛 have any authority under the legislation to impose. ItB次元官网网址檚 totally offensive to administrative fairness.B次元官网网址

Hudec said the Alberta move could be vulnerable to a judicial review.

B.C.B次元官网网址檚 Ministry of Public Safety and Solicitor General, in a statement Wednesday, said it was B次元官网网址渁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.B次元官网网址

John Skinner of Painted Rock winery in Penticton, B.C., said AlbertaB次元官网网址檚 move couldnB次元官网网址檛 come at a worse time. Freak cold weather has devastated grapevines throughout the province for a second year in a row.

B次元官网网址淭he industry is on its heels,B次元官网网址 he said. B次元官网网址淲eB次元官网网址檇 like a little consideration from our provincial friends.B次元官网网址

He estimated about 10 per cent of his sales are directly to consumers in Alberta.

B次元官网网址(The move) doesnB次元官网网址檛 represent the Alberta people,B次元官网网址 he said. B次元官网网址淲e have a lot of Albertan wine club members.B次元官网网址

Wines of British Columbia has written its own letter back to Alberta.

B次元官网网址淭he letters raise serious concerns for both the individual recipients and for Alberta-British Columbia trade relationships generally,B次元官网网址 says the Jan. 24 document.

B次元官网网址淭he AGLC has no authority, within the legislation that it administers, to impose this interprovincial trade restriction.B次元官网网址

Karin Campbell, spokeswoman for the Alberta commission, said in an email the agency is trying to protect Albertans.

B次元官网网址淪uppliers from other provinces that offer direct-to-consumer shipping are in contravention of provincial legislation, are bypassing AlbertaB次元官网网址檚 private liquor retailers and liquor agencies and are impacting the dollars that go to the general revenue fund,B次元官网网址 she wrote. B次元官网网址淲ith no oversight, AGLC cannot ensure that these products are being sold only to adults over the age of 18.B次元官网网址

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 didnB次元官网网址檛 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 arenB次元官网网址檛 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 didnB次元官网网址檛 go through provincial licensing agencies.

Hudec said thatB次元官网网址檚 part of the reason Canadians consume a lower proportion of their own wines than any other wine-producing country.

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