Index Introduction ...... 3 Canada: general characterisation ...... 4 Geography e Demography ...... 4 Territorial organisation...... 4 Economy...... 6 Production and Wine Consumption ...... 8 Production ...... 8 Consumption ...... 9 Foreign Trade ...... 11 General Overview ...... 11 Portuguese Wine ...... 12 Portugal’s Positioning in the Canadian Market ...... 13 Portuguese wine imports by Provinces ...... 15 Additional Information ...... 17 Characteristics, Distribution and Market access ...... 17 Useful Contacts ...... 18 Institutions ...... 18 Associations...... 18 Agents ...... 19 Imports, Trade and Distribution ...... 19 Annex 1 – Total Imports and by segment ...... 20 Annex 2 – Suppliers with market share above 1%, volume and value ...... 24 Annex 3 – Port Wine and price by segment ...... 25 Annex 4 – Portugal’s Positioning in Canada’s largest provinces ...... 26 Annex 5 – Comparative Matrix between suppliers with market share above 1%, in 2003 and 2013...... 27 Annex 6 – Taxes on wine on the different monopolies ...... 28

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Introduction Canada is a North American Federal State with 10 Provinces and 3 Territories deriving from former British and French colonies. Currently being a parliamentary democracy and a constitutional monarchy, this country is one of the world's great mightiness and is socially well developed. Therefore, and also having a fairly advanced economy, where its citizens enjoy a purchasing power above the world average, the country emerges as a market to keep in mind regarding not only the wine sector in particular, but also in other industries.

This paper aims to study the imports in the Canadian wine market between 2003 and 2013, in order to analyze its evolution and identify countries that have stood out as well as the performance of Portuguese wines in the country and in each province.

Firstly, there will be a short summary about the geography and demography of Canada and the evolution of production and consumption of wine in this country, during the indicated period. Then it will be analyzed the imports made by Canada in the same period and Portugal's position will be disaggregated from that of other competitors in this market, commenting on the current situation and observing the history over the last 10 years.

Portugal is the 9th largest wine supplier of Canada and the 4th European, with a 2.6% share of this market. Since 2003, the Portuguese wine exports have barely changed, due to the reduction of Port wine which, although offset by an increase in still wine, did not reverse the evolution of Portuguese wines in this market in the period 2003-2012. However, the biggest advantage of Portuguese wines in this market continues to be the price, the 4th highest, despite having been the 1st ten years ago.

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Canada: general characterisation

Geography e Demography Canada is the 2nd largest nation in the world with almost 10 million km2, slightly larger than the United States. It corresponds to a little more than half of the Russian territory, the largest country in the world, and 109 times the Portuguese territory (92,000 km2).

This country is bordered by the Arctic Ocean to the north, the Pacific to the west and the Atlantic to the east and it is located at 60 degrees north latitude and at 95 degrees east of the Greenwich meridian. It shares land borders only with the U.S., to the south with the continental states and with Alaska to the northwest.

With one of the lowest population densities worldwide, 3.5 inhabitants per km2, Canada is the 38th most populous country in the world, with nearly 35 million inhabitants, 3.5 times more than Portugal and 11% of the EU population. Nevertheless, the Canadian population has been growing in recent years due to the increase of immigrants - Canada has the highest per capita immigration in the world. About half of the population of this country is less than 40 years, even though the same population is going through a similar situation to that of all developed countries, i.e. the ageing of the adult population, with more retirees and fewer people belonging to the working population.

Territorial organisation Canada is a constitutional and democratic monarchy, with Ottawa as its capital city and Toronto being the city with the largest population.

Map 1- Canada Provinces and Territories

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This country consists of 10 Provinces and 3 Territories:

 Provinces (to the south): Alberta, British Columbia, Prince Edward Island, Manitoba, New Brunswick, Nova Scotia, Ontario, Québec, Saskatchewan and Newfoundland and Labrador  Territories (to the north): Nunavut, Northwest Territories and Yukon.

The Canadian population is essentially concentrated in the provinces (Table 1). In Ontario, where the capital Ottawa is situated and also the most populous city, Toronto, reside more than 13 million people (39% of the total population). Along with the territory of Quebec, they represent over 60% of Canada's population. The population density in this country is very low due to the extent of the territory. However, it is in Prince Edward Island that the highest density (26 inhabitants per km2) can be seen, followed by Nova Scotia and Ontario.

In the territories the population is very low. Nunavut is the largest territory in Canada, but also the least populated. Moreover, in these territories, the population density is around 3 people per 100km2 which clearly demonstrates the low occupancy of these territories. Finally, when compared with Canada, the Portuguese population equals about 30% of the Canadian one, but the population density is much higher.

Table 1 – Regional Population Distribution in Canada’s Provinces and Territories (2011)

Density Population % of Canada Territory (km2) (inhab./km2) Provinces 34,371,116 99.7% 6,062,931 6 Ontario 13,372,996 38.8% 1,076,395 12 Québec 7,979,663 23.1% 1,542,056 5 British Columbia 4,573,321 13.3% 944,735 5 Alberta 3,779,353 11.0% 661,848 6 Manitoba 1,250,574 3.6% 647,797 2 Saskatchewan 1,057,884 3.1% 651,036 2 Nova Scotia 945,437 2.7% 55,284 17 New Brunswick 755,455 2.2% 72,908 10 New Foundland and Labrador 510,578 1.5% 405,212 1 Prince Edward Island 145,855 0.4% 5,660 26 Territories 111,663 0.3% 3,921,739 0.03 Northwest Territories 43,675 0.1% 1,346,106 0.03 Yukon 34,666 0.1% 482,443 0.07 Nunavut 33,322 0.1% 2,093,190 0.02 Portugal 10,487,289 30.4% 92,090 114 Lisbon 2,869,433 8.3% 2,962 969 Source: Statistics Canada, Census 2011.

The 9 metropolitan areas in Canada with populations exceeding half a million inhabitants represent about half of the total population (Table 2). Toronto, the largest area, hosts over 5 million people, almost the double of the second largest area, Montreal. The 3rd largest Canadian population center, Vancouver, is equivalent to the Greater Lisbon, having even less resident inhabitants. Finally, and as a curiosity, the population of Greater Porto is equivalent to that of Edmonton, the 6th largest metropolitan area in Canada.

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Table 2 - 9 most populous metropolitan areas in Canada (2011)

Metropolitan Area Province Population Toronto Ontario 5,583,064 Montréal Québec 3,824,221 Vancouver British Columbia 2,313,328 Otawa - Gatinea Ontario/Québec 1,236,324 Calgary Alberta 1,214,839 Edmonton Alberta 1,159,869 Québec Québec 765,706 Winnipeg Manitoba 730,018 Hamilton Ontario 721,053 Fonte: Statistics Canada, Census 2011.

Economy In 2012, Canada's GDP stood at 1.821 billion Canadian dollars, equivalent to 1.379 billion euros (Chart 1) and more than 7 times the Portuguese GDP.

Chart 1 – GDP Evolution in Canada, in the period of 2002-2012

Real GDP Annual Growth Rate 1.750

€ 20%

1.500 15% Billions Billions 1.250 10% 1.000 5% 750 0% 500 02 03 04 05 06 07 08 09 10 11 12 -5% 250 -10% 0 02 03 04 05 06 07 08 09 10 11 12 -15%

Source: The World Bank.

Canada has one of the most robust and dynamic economies in the world, being part of the G8. From 2002 to 2012, the generated wealth in this country more than doubled and had a continuous growth, such as the GDP per capita, with one exception in 2009 in which it decreased. Following the trend of the world's most developed economies, Canada's GDP declined by 11% in 2009. However, from that year onwards, the Canadian economy observed the highest growth rate in the analysed period (17.9%), and until 2012 grew over 30%. The budget deficit in 2012 was established at 1.5% of GDP and has been declining in recent years, while public debt has increased in recent years and accounts for 85% of GDP. For 2013, it is expected that GDP will grow, albeit very timidly.

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Table 3 - Aggregate and per capita GDP and average income, for the provinces and territories of Canada (2012)

GDP per Average annual GDP % of Canada capita (€) income (€) (billions €) Total GDP Provinces 41,674 32,256 1,372.25 99.5% Ontario 38,109 32,541 505.96 36.7% Québec 33,903 27,846 273.08 19.8% Alberta 61,442 40,756 238.01 17.3% British Columbia 36,316 30,674 167.88 12.2% Saskatchewan 55,062 31,236 59.47 4.3% Manitoba 35,080 28,078 44.45 3.2% Nova Scotia 30,885 27,554 29.30 2.1% Newfoundland and Labrador 50,333 26,972 25.81 1.9% New Brunswick 31,839 26,071 24.07 1.7% Prince Edward Island 28,973 25,665 4.23 0.3% Territories 67,434 38,135 7.25 0.5% Northwest Territories 82,390 40,927 3.57 0.3% Yukon 55,615 36,501 2.01 0.1% Nunavut 49,771 34,153 1.67 0.1% Portugal 15,702 11,810 165.41 12.0% Lisbon 22,700 15,810 64.31 4.7% Source: Statistics Canada e várias notas de conjuntura.

In Canada, the provinces of Ontario and Quebec account for more than half the wealth generated in this country, which is very uneven across provinces and territories - the 4 provinces with higher GDP represent about 85% of the total Canadian, although this also due to the effect of demographic disparity . Incidentally, only Prince Edward Island has a lower GDP than the 3 territories in Canada together, demonstrating the little wealth created in these ones.

On the other hand, GDP per capita is much higher in the territories, with the exception of the provinces of Alberta, Saskatchewan and Newfoundland and Labrador - a reduced GDP combined with a residual population density justifies the figures for GDP per capita, as for the average annual income.

Compared with Portugal, neither the country as a whole nor Lisbon manage to have values of created wealth per capita comparable to Canadian values, but on an aggregate perspective, Portugal resembles the province of British Columbia, and Lisbon the province of Saskatchewan.

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Production and Wine Consumption

Production Although Canada is not a major worldwide wine producer, its wine industry has evolved greatly in recent years through the Icewines, globally recognized and world market leaders. In 2009, the acreage of vines amounted to about 12 thousand hectares, according to the International Organisation of Vine and Wine (OIV). Since 1996 until 2009, the same surface increased only 4,000 hectares, mild and gradually. By comparison, the Canadian acreage represents only 5% of the Portuguese.

In 2009 Canada produced 530 million hectoliters of wine, and since 1996 there was an increase of almost 60% - the production of Canadian wine corresponds to 8.9% of the Portuguese wine production and 0.2% of the world production. Finally, about 2% (9,300 hectoliters) of the production results in Icewines, of which half is destined for export.

Chart 2 – Wine production in Canada, in the period of 1996-2009

Surface Area Wine Production 18 600

15 500

12 400 1000 hectares 1000

9 hectoliters 1000 300

6 200

3 100

0 0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 96 97 98 99 00 01 02 03 04 05 06 07 08 09

Source: Wine and Vine International Organization (OIV), Database StatOIV Extracts.

According to Wines of Canada1, there are about 550 vineyards spread throughout the Canadian territory, mainly concentrated in the provinces of British Columbia (Okanagan Valley) and Ontario (Niagara Peninsula). There are also vineyards of small producers in Quebec, Nova Scotia and New Brunswick and that, along with the former provinces, account for 98% of total wine production in Canada.

1 Wines of Canada is an association responsible for promoting Canadian wines association as well as their internal and8 external marketing.

Chart 3 - Vineyard Distribution in Canada (number of vines)

292

143

65 20 14 5 5 4 3 2

British Ontario Québec New Scotland New Alberta Prince Edward Newfoundland Saskatchewan Manitoba Columbia Brunswick Island and Labrador

Source: Wines of Canada, 2013.

Not being a traditional wine producer globally, Canada uses various types of grape in the production of wine, especially from France and the North American continent. The vitis vinifera family grape varieties, such as Chardonnay, Riesling or Pinot Noir, are used in the production of higher-quality wines, whereas grape varieties of North American origin, such as Concord and Niagara, form the basis for wines produced in low temperature territories, given their resistance. Finally, in Canada early maturing varieties such as Vidal or Baco Noir are also used.

Consumption In the period 1996-2012, the wine consumption in Canada more than doubled for both aggregated as per capita values. For aggregated ones, consumption increased from 2 to 4.9 million hectoliters of wine, growing at an average annual rate of 5.7%; in 16 years consumption has never diminished. Per capita consumption has fallen slightly in 2008. Since 1996, in Canada, the per capita consumption also more than doubled, i.e. it increased from 6.8 to 14.1 liters. Compared to Portugal, wine consumption per Canadian in 2012 was about 3 times lower than the Portuguese (42 liters per capita).

Chart 4 – Wine comsumption in Canada, in the period of 1996-2012

Consumption Per Capita Consumption 6 18

5 15

4 liters/year 12

3 9

Thousands of hectolitersof Thousands 2 6

1 3

0 0 96 98 00 02 04 06 08 10 12 96 98 00 02 04 06 08 10 12

Source: Wine and Vine International Organization (OIV), Database StatOIV Extracts

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The consumption of wine produced or bottled in Canada is mainly divided into two categories. The first and most representative in the market, low-to-medium-priced wines, consists on the consumption of domestically produced wines or bottled locally, with low and medium cost. Incidentally, in this segment, the imported wines and grapes are labeled as "Cellared in Canada", inhibiting them from fulfilling the rules and regulations of the Vintners Quality Alliance2. The second category, mid-to-premium-priced wines, covers wines with indication of vintage year and icewines domestically produced and aimed at upper-middle class consumers.

According to a Wine Intelligence study on wines from around the world, Canadian consumers prefer wines from traditional wine producing countries, or "old world", focusing on the values of quality and also heritage. These are consumers with incomes above the national average, tendentially from the male gender and that "drink for the taste of wine, pleasure and also because it helps to create a friendly atmosphere amongst people." The fraction of regular wine consumers (14%) drinks wine 2 to 5 times per week. This study also indicates that the Canadian market has a growth potential, particularly for younger consumers.

Another study by the USDA Foreign Agricultural Service3 claims that in the Canada wine market there is a greater demand for red wines than whites and that 76% of red wine sales comes from foreign origin (63% for white). This study also predicts that Canada will be one of the fastest growing markets worldwide in the coming years.

Finally, a study by Euromonitor predicts that over the coming years consumption and imports of wine will continue to grow. The annual expense of Canadian consumers in wine will also increase in all segments, except for champagne.

Table 4 - Consumption per capita and average sales price in the 3 main wine markets in Canada (2012)

Consumption per Average Sales GDP per capita capita (liters) Price Québec 22 10,30 € 38.109 € British Columbia 19 9,76 € 36.316 € Ontario 14 7,88 € 33.903 € Canada 14 8,74 € 39.550 € Source: Statistics Canada, ICEX and several memos on the economy.

Within the 3 provinces with higher wine consumption in Canada, Québec, Ontario and British Columbia, only the second last equals the total consumption per capita in the country. Incidentally, in Québec, where every adult inhabitant has consumed, in 2012, 22 liters of wine, the average selling price exceeded 10 euros - the wealth generated per capita in this province amounted to just over 38,000 euros, below the national average.

2 The Vintners Quality Alliance is a national association that regulates the production and sale of wine and that has 10provincial protection, managing production standards and the areas permitted for cultivating vines - note that the rules in the wine sector in Canada vary across provinces . 3 USDA Foreign Agricultural Service – Global Agricultural Information Network, Overview of the Wine and Spirits Sector in Canada, 2013.

Foreign Trade

General Overview From 2003 to 2013, Canada has always been a net importer in the international wine trade. Last year, this North-American country imported, approximately, 41 million cases4 (373 million liters) in the amount of EUR 1.4 billion, thus accounting for an average price of € 3.82/liter – 2.87 € per bottle5 (75 cl). Comparing the two flows, imports and exports, it appears that Canada buys wine more expensive than the one it sells, and that difference being bigger than the triple.

Chart 5 – Wine imports in Canada, in the period of 2003-2013

Value Volume

€ 1,8 60

1,4

Billions 1,5 50

41 Millionboxes 1,2 40

0,9 30 31 0,8 0,6 20

0,3 10

0,0 0 03 04 05 06 07 08 09 10 11 12 13 03 04 05 06 07 08 09 10 11 12 13 Source: Statistics Canada, STATCAN Database.

In the given period, imports of wine made by Canada grew 33% in volume and 82% in value, giving average annual growth rates of 2.9% and 6.2%, respectively. Due to a greater increase in value rather than in volume, the average import price also increased from € 2.80 to € 3.82 per liter. Since 2003, these imports, in value, never decreased, and only in 2004 and 2013 decreased in volume (4.5% and 1%). The average price fell only in 3 years, but with residual variations (see Annex 1).

Table 5 – Canadian wine imports by segment, in the period of 2003-2013

Volume Value Price 2003 2013 ∆ % 2003 2013 ∆ % 2003 2013 ∆ % Total6 31,047,901 41,427,779 33% 782,323,176 1,423,589,004 82% 2.80 3.82 36% Sparkling 654,941 1,291,065 97% 40,568,661 90,450,125 123% 6.88 7.78 13% Bottled 23,573,476 29,771,345 26% 700,821,063 1,265,707,649 81% 3.30 4.72 43% Bulk 6,819,484 10,365,369 52% 40,933,452 67,431,230 65% 0.67 0.72 8% Volume in 12 bottle cases, Value in Euros and Prices in Euros/liter. Source: Statistics Canada, STATCAN Database and IVV.

4 12 Bottle cases, in a total of 9 liters. 115 CIF Price (Cost, Insurance and Freight). 6 For the analysis of total imports of the country under study (Canada) and by simplifying, the analysis of bottled wine contains values of Port wine. The analysis of imports of Portuguese wine is already net of Port wine, which will be analyzed separately. For bulk wine the considered volume is of more than 2 liters.

In this analysis, imports of wine made by Canada were partitioned into three segments, sparkling, bottled and bulk 7, 8. Using this methodology, it is proved that it was not only bottled wine, including Port, the main responsible for the evolution of Canadian imports, which grew at rates similar to those of the total and which represents 89% of total imports, but also for the remaining segments that grew as well. The segment sparkling was actually the one that stood out, growing, on average and per year, 7% in volume and 8% in value. The average price of bottled wine rose from € 1.42 to € 4.72, which places it well above the total price, this also due to the fact that the price of this segment increased and the price of bulk wine remains relatively low.

Portuguese Wine Portugal is the 9th largest global supplier of wine in Canada with a market share of 2.4% in volume and 2.6% in value; 10 years ago, these market shares were 2.1% and 4.2%, respectively. In an inverse analysis, destination Canada also represents about 3.0% of Portuguese wine exports in volume and 5.7% in value. Since 2003, imports of Portuguese wine increased by 56% in volume and 11% in value, which in turn has driven down the average price by 29% to € 4.17. Still, imports of Portuguese wine grew below those of the total market, mainly due to the negative evolution of Port wine imports, since the remaining segments, sparkling, bottled and bulk, grew above the total Canadian market.

Table 6 – Canada’s Portuguese wine imports by segment, in the period of 2003-2013

Volume Valor Preço 2003 2013 ∆ % Share9 2003 2013 ∆ % Share9 2003 2013 ∆ % Total 639,911 996,090 56% 2.4% 33,723,112 37,421,889 11% 2.6% 5.86 4.17 -29% Espumante 389 1,148 195% 0.1% 19,963 49,287 147% 0.1% 5.70 4.77 -16% Engarrafado 315,628 766,488 143% 2.6% 8,234,329 21,138,321 157% 1.7% 2.90 3.06 6% Granel 6,661 53,351 701% 0.5% 63,820 636,217 897% 0.9% 1.06 1.33 24% Porto 317,233 175,103 -45% N.A. 25,405,000 15,598,065 -39% N.A. 8.90 9.90 11% Volume in 12 bottle cases, Value in Euros and Prices in Euros/liter. Source: Statistics Canada, STATCAN Database and IVV.

Port wine and Portuguese bottled wine represent virtually all imports of wine into Canada but, over the last 10 years, they have evolved differently. Imports of bottled wine increased by 143% in volume and 157% in value, which resulted in an increase in the average price of € 2.90 to € 3.06, below the overall average price. In the reverse situation stands Port wine, whose imports in Canada declined in volume and value but increased in average price. However, in the last year of the sample, 2013, imports in this segment increased, a situation that only happened in 2010. Finally, imports of sparkling wine more than doubled (only the average price fell) and bulk wine was the segment that most evidenced itself, increasing the value almost 9-fold.

7 The data used was taken from StatCan, a database of Eurostat, on 16 January 2014. Combined Nomenclature codes 12used were 220410, 220421 and 220429 which, for simplicity, were renamed by Sparkling, Bottled and Bulk, respectively. 8 For the analysis of imports of Portuguese wine, the data is divided into 4 segments: Sparkling, Bottled, Bulk Port; for this last segment, the data were taken from the IVV (Institute of Vine and Wine).). 9 Quotas calculated based on the value of imports..

Chart 6 – Comparison between prices of total and Portuguese bottled wine, with and without Port wine

Prices of Wine Imports in Canada 12,00 €

10,00 € 9,90 €

8,00 €

6,00 € 4,72 € 4,00 € 4,34 € 3,06 € 2,00 €

0,00 € 03 04 05 06 07 08 09 10 11 12 13 Total Bottled imported by Canada Bottled imported from Portugal with Port Bottled imported from Portugal without Port Port Wine

Source: Statistics Canada, STATCAN Database and IVV.

As mentioned before, imports of Port wine declined in the period 2003-2013, but the average price increased. Still, together with the other bottled wines, the average price of the total Portuguese bottled wine declined from € 5.91 to € 4.34, above the average Portuguese price with all segments and also above the total price of Canadian imports (see Annex 3). Finally, the difference between the price of bottled wine, with and without Port, decreased considerably since in 2003 the difference between the two segments amounted up to € 3.01 and in 2013 up to € 1.27.

Portugal’s Positioning in the Canadian Market Table 7 – Canadian major suppliers, with market share of over 1%

Value (Euros) Average price (Euros/Lts.) Variation Variation Variation Variation 2013 Quota 2013 last year 10 years last year 10 years France 320,004,281 7.1% 25.2% 22.5% 5.35 € 10.3% 76.4% USA 294,023,746 15.1% 223.4% 20.7% 4.91 € 7.9% 126.4% Italy 283,490,796 5.3% 90.9% 19.9% 4.08 € 9.2% 36.8% Australia 153,709,103 -5.2% 19.4% 10.8% 2.96 € -9.7% -13.9% Spain 74,843,869 8.0% 150.1% 5.3% 2.65 € 46.6% -14.6% Argentina 70,010,810 -3.4% 752.1% 4.9% 2.83 € 6.7% 35.3% Chile 67,720,854 0.4% 62.1% 4.8% 2.23 € -20.1% 39.6% New Zealand 53,017,089 9.5% 766.2% 3.7% 6.37 € 1.4% 72.7% Portugal 37,421,889 11.5% 14.4% 2.6% 4.17 € 2.2% -28.7% South Africa 32,462,609 -4.1% 146.5% 2.3% 1.58 € -3.7% -23.3% Germany 23,625,780 3.4% 53.7% 1.7% 3.77 € 6.1% 34.9% Source: Statistics Canada, STATCAN Database.

At the end of 2013, there were 11 suppliers of wine in Canada with market shares over than 1% and that, in turn, accounted for 99% of the entire market - only the top-3, consisting of France, U.S. and Italy constituted 2/3 of the whole market. The market leader is France, but in recent

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years, the U.S. surpassed Italy and Australia, approaching to the French; note that the countries of the North-American continent (U.S., Canada and Mexico) and Chile have between them a free trade agreement and reduced costs in international trade, the NAFTA10. Portugal is positioned in a consolidated 9th place, but since 2003 ceded three places to Spain, Argentina and New Zealand.

Chart 7 – Matrix of the Canadian wine suppliers, with market share of over 1% (2013)

€ 8,00 € Volume > 2 million boxes

7,00 €

Price perliter, FRANCE (301.638.966) 6,00 € NEW ZEALAND (49.724.135)

5,00 € PORTUGAL (34.453.407) USA (270.527.670)

4,00 € Average ARGENTINA (66.189.842) Price GERMANY 3,00 € SPAIN (69.742.126) (22.701.267) ITALY (265.279.245) CHILE (64.174.602) 2,00 € AUSTRALIA (144.943.201)

1,00 € SOUTH AFRICA (30.482.516)

0,00 € 0 1 2 3 4 5 6 7 8 9 Volume in million boxes (9 liters) Source: Statistics Canada, STATCAN Database.

For suppliers with a market share of over 1%, the wine originating in New Zealand has got the highest average price, followed by France and the U.S., which had the largest evolution of this sample in the past 10 years. Also, the imports of New Zealand wine were the ones that more evolved since 2003, with the wines of Argentina and the U.S. completing the podium of wine suppliers in Canada with the biggest evolution. In 2013, Portugal had the 4th highest average price in this ranking but 10 years before, it had the highest.

Since 2003, Portugal was one of the countries that lost market share, along with France, Australia, Chile and Germany. Portuguese wine imports were also those which least have evolved in this ranking, due to the decrease in imports of Port wine and strong dependence of this segment in the Portuguese wine total imports. In this period, Portugal has been overtaken by Spain, whose average import price decreased, and by Argentina and New Zealand, but remained above South Africa and Germany - these two countries developed positively due to the reduction of the average price of wine.

Considering the average price of Portuguese wine imports without Port wine, it appears that the Portuguese price would be the 7th in this ranking, surpassing prices of South Africa, Chile, Spain and Argentina but slightly lower than the price of Australia. The price of the latter has even fallen in the past 10 years, and last year the decrease was more pronounced (-9%)11.

10 North American Free Trade Agreement. 1411 See Annex 3.

Portuguese wine imports by Provinces In the different provinces, imports of Portugal have a very concentrated distribution, because more than half of imports are destined for the province of Quebec (56.7%) and about a ¼ the province of Ontario (27.2%). In contrast, the provinces of the Prairie 12 regions (except for Alberta) and Atlantic13 have a residual representation in the Canadian market, less than 1%. The province of British Columbia represents more than 5% of imports of Portuguese wine in Canada, while the province of Alberta could provide an opportunity for the Wines of Portugal brand, not only due to its weight on the total Canadian distribution (8.1 %) as well as due to its high per capita GDP (61 thousand euros).

Table 8 – Canadian wine import by importers location (2013)

Portugal’s GDP per Provinces Sparkling Rank Bottled Rank Bulk Rank Exports capita Distribution (2012) New Foundland and Labrador 0 N.A. 193,337 11 0 N.A. 0.5% 50,333 Prince Edward Island 0 N.A. 45,400 11 0 N.A. 0.1% 28,973 Nova Scotia 0 N.A. 168,334 11 4,021 11 0.5% 30,885 New Brunswick 0 N.A. 129,419 11 0 N.A. 0.4% 31,839 Québec 14,530 11 20,631,871 6 558,080 9 56.5% 33,903 Ontario 21,473 13 10,100,568 9 70,004 11 26.8% 38,109 Manitoba 627 11 304,732 11 0 N.A. 0.8% 35,080 Saskatchewan 0 N.A. 192,775 10 0 N.A. 0.3% 55,062 Alberta 10,502 13 3,029,436 10 4,107 8 8.6% 61,442 British Columbia 2,155 14 1,940,514 10 3 N.A. 5.5% 36,316 Values in euros. Source: Statistics Canada, STATCAN Database.

Chart 8 illustrates the Wines of Portugal market shares in the provinces of Canada and compared with the global market share in the country (2.6%). The province of Quebec is the only above the country's average, with a market share of 3.9%, and also where Portugal has the better positioning amongst provinces - 6th place, behind France, Italy, U.S., Spain and Australia. Even so, Portugal’s position in this province has decreased in the past 10 years, with imports having decreased 14%. In the Ontario province, Portugal occupies a modest 9th place, with its market share not oscillating much in recent years but with imports increasing by 17%. The Alberta province, with a market share of 1.5%, has had the largest growth over the last 10 years (1518%), thus reinforcing the thesis that defends that this is a market to explore and to take into account.

12 Alberta, Saskatchewan and Manitoba. 1513 New Foundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick.

Chart 8- Portugal’s market positioning in the provinces of Canada (2013)

8% 7,1% 7%

6%

5% 4,0% Portugal's market share in Canada, 2003 (4,2 %) 4% 3,0% 3% 2,3% Portugal's market share in Canada, 2013 (2,6 %) 2,1% 2,2% 2,2% 2,2% 1,8% 1,9% 2% 1,6% 1,4% 1,3% 1,3% 1,4% 1,4% 0,9% 1,1% 0,9% 1% 0,8%

0% Newfoundland Prince Edward New Escócia New Québec Ontario Manitoba Saskatchewan Alberta British and Labrador Island Brunswick Columbia Soru:ce Statistics Canada, STATCAN Database.

In the most relevant Canadian provinces - Alberta, Ontario, Québec and British Columbia - Portugal always features in the top-10 wine suppliers. In Alberta, the average price of Portuguese wine imports is the 2nd largest in the province (€ 10.49/liter), only surpassed by France. It should be noted that the high price of imports of Portuguese wine, and of some other countries as well, could be greatly influenced by the high tax rates applied.

However, Portugal occupies the last place regarding the value of imports, with a market share slightly above 1%. On the other hand, as mentioned above, Portuguese wines get the best positioning in Québec (6th place with 4% market share), registering a rise in imports of 9.4% in the last 4 years and an average price of around € 3.98/liter. In Ontario, Portuguese wine imports occupy the 9th place in the ranking and have the 5th highest average price, while in British Columbia they are positioned in the 10th place but with the 3rd highest average price in the ranking (see Annex 4).

Chart 9 – Portuguese wines’ positioning in the most relevant provinces (2013)

10,44 €

2º

4,57 € 3,98 € 4,0% 3,76 € 3º 4º 6º 5º 2,2% 1,4% 1,4% 9º 10º 10º

Alberta Québec Ontario British Columbia Average Price Market Share

Note: Numbers inside the chart bars indicate Portuguese wines’ positioning in each province’s ranking. Source: Statistics Canada, STATCAN Database.

16

Additional Information Economic agents should consider the national procedures for exporting to the UK before actually doing so. These standards are provided, amongst others, by the Wine and Vine Institute (IVV) and available in http://www.ivv.min-agricultura.pt/np4/499 (only in portuguese).

Characteristics, Distribution and Market access Canada has monopolies in the import and trading of alcoholic beverages in all provinces except for Alberta, which has a mixed system (public and private). The Canadian Liquor Boards - http://www.thekirkwoodgroup.com/pages/boards.aspx - Canada’s monopolies, are thus responsible for the import of wines and other alcoholic beverages and their distribution. Each monopoly has its own policies and regulations, and any exporter who is interested in selling wines in Canadian provinces has to make contact with an agent duly licensed by the monopoly in question – it is a kind of intermediary between the exporter and monopoly.

The wines imported by Canada will need to comply with some rules of presentation and labeling - http://www.inspection.gc.ca/english/fssa/labeti/guide/ch10e.shtml # a10_1 - as well as paying taxes of entry into Canada and also in each monopoly (see Annex 6).

As a curiosity, the Canada Duty Calculator is a useful tool for calculating tax by province in Canada (available at http://www.canadiandutycalculator.ca/ ).

AICEP, a Portuguese foreign trade consultant, can also be a source of information to consider, namely through a sectorial analysis in Canada, available at and in Portuguese: http://www.portugalglobal.pt/PT/Biblioteca/LivrariaDigital/CanadaFichaMercado.pdf; this document contains information about access and approach to the market as well as some advice and useful contacts.

Finally, the Market Access Database (m.a.db), the database of the European Commission and available on http://madb.europa.eu/madb/indexPubli.htm, is another source of information about access to markets; it contains information on tariffs, import procedures, barriers to trade, sanitary issues and rules of origin.

As other examples of databases that can be used and also for other countries, there is the:

World Bank: http://wits.worldbank.org/wits/

International Trade Centre: http://www.intracen.org/policy/tariff-data/.

17

Useful Contacts

Institutions AICEP Toronto Embaixada de Portugal no Canadá Telephone: +1 416 921 4925 Telephone: +1 613 729 2922 E-mail: [email protected] E-mail: [email protected] Web: http://www.embportugal-ottawa.org/

Federação Portuguesa no Canadá Foreign Affairs, Trade and Development Canada Telephone: +1 416 537 8874 Telephone: +1 613 944 4000 E-mail: [email protected] Web: http://international.gc.ca/ Web: http://www.fpcbp.com/

Canada Revenue Agency Industry Canada Web: http://www.cra-arc.gc.ca/ Web: http://www.ic.gc.ca/

Agriculture and Agri-Food Canada Telephone: +1 613 773 1000 E-mail: [email protected] Web: http://www.agr.gc.ca/

Associations Association des vignerons du Québec Association Of Canadian Distillers E-mail: [email protected] Telephone: +1 416 626 0100 Web: http://www.vignerons-du- quebec.com/

British Columbia Wine Authority British Columbia Wine Institute Telephone: +1 604 248 0379 Telephone: +1 250 762 9744 E-mail: [email protected] E-mail: [email protected] Web: http://www.bcvqa.ca/ Web: http://www.winebc.com/

Canadian Association of Importers and Exporters Canadian Association of Liquor Jurisdictions Telephone: +1 866 616 2243 Telephone: +1 416 780 1851 E-mail: [email protected] Web: http://www.calj.org/ Web: http://www.iecanada.com/

Canadian Vintners Association Vintners Quality Alliance Ontario Telephone: +1 613 782 2283 Telephone: +1 416 367 2002 E-mail: [email protected] E-mail: [email protected] Web: http://www.canadianvintners.com/ Web: http://www.vqaontario.com/Home

Wine Council of Ontario & Vintners Quality Winery Association of Nova Scotia Alliance of Canada Telephone: +1 902 492 9291 Telephone: +1 905 684 8070 E-mail: [email protected] E-mail: [email protected] Web: http://winesofnovascotia.ca/

18

Agents Drinks Ontario Web: http://www.drinksontario.com/

Import Vintners & Spirits Association Telephone: +1 778 840 4872 E-mail: [email protected] Web: http://ivsa.ca/

Association Québécoise des Agences de Vins, Bières et Spiritueux Inc. Telephone: +1 514 722 4510 E-mail: [email protected] Web: http://aqavbs.com/

Imports, Trade and Distribution Alberta Gaming and Liquor Commission B.C. Liquor Distribution Branch Telephone: +1 780 447 8600 Telephone: +1 604 252 3000 Web: http://www.aglc.ca/ Web: http://www.bcliquorstores.com/

Liquor Control Board of Ontario Manitoba Liquor Control Commission Telephone: +1 416 365 5900 Telephone: +1 204 284 2501 Web: http://www.lcbo.com/ Web: http://www.liquormartsonline.com/

New Brunswick Liquor Corp. Newfoundland Liquor Corp. Telephone: +1 506 452 6826 Telephone: +1 709 724 1100 Web: http://www.anbl.com/ Web: http://www.nlliquor.com/

N. W. T. Liquor Commission Nova Scotia Liquor Corp. Telephone: +1 867 874 8700 Telephone: +1 800 567 5874 Web: http://www.fin.gov.nt.ca/liquor-fund/ Web: http://www.mynslc.com/

P. E. I. Liquor Control Commission Société des alcools du Québec Telephone: +1 902 368 5720 Telephone: +1 866 873 2020 Web: http://www.peilcc.ca/ Web: http://www.saq.com/

Saskatchewan Liquor and Gaming Authority Yukon Liquor Corp. Brand Telephone: +1 306 787 5563 Telephone: +1 867 667 5245 Web: http://www.slga.gov.sk.ca/ Web: http://www.ylc.yk.ca/

19

Annex 1 – Total Imports and by segment

Canada: Total Imports Canada: Total Exports Absolute Relative Absolute Relative Absolute Relative Volume Value Price Volume Value Price Var. Var. % Var. Var. % Var. Var.% 2003 31,047,901 N,D, N.D. 782,323,176 N,D, N.D. 2.80 € N.D. N.D. 2003 457,799 8,112,368 1.97 € 2004 29,652,854 -1,395,047 -4.5% 804,952,827 22,629,651 2.9% 3.02 € 0.22 7.7% 2004 313,159 11,196,736 3.97 € 2005 31,213,838 1,560,983 5.3% 861,092,032 56,139,206 7.0% 3.07 € 0.05 1.6% 2005 207,798 13,895,940 7.43 € 2006 33,816,916 2,603,078 8.3% 978,123,353 117,031,321 13.6% 3.21 € 0.15 4.8% 2006 171,492 13,962,305 9.05 € 2007 34,639,561 822,645 2.4% 1,072,574,271 94,450,918 9.7% 3.44 € 0.23 7.1% 2007 330,139 17,035,674 5.73 € 2008 35,539,797 900,236 2.6% 1,133,557,918 60,983,647 5.7% 3.54 € 0.10 3.0% 2008 751,425 15,569,013 2.30 € 2009 36,468,376 928,579 2.6% 1,136,616,671 3,058,753 0.3% 3.46 € -0.08 -2.3% 2009 1,229,200 14,104,700 1.27 € 2010 38,895,573 2,427,197 6.7% 1,194,053,940 57,437,269 5.1% 3.41 € -0.05 -1.5% 2010 1,681,617 21,358,867 1.41 € 2011 39,821,678 926,106 2.4% 1,292,954,746 98,900,806 8.3% 3.61 € 0.20 5.8% 2011 2,435,378 30,235,894 1.38 € 2012 41,867,257 2,045,579 5.1% 1,346,992,638 54,037,891 4.2% 3.57 € -0.03 -0.9% 2012 2,976,753 34,047,868 1.27 € 2013 41,427,779 -439,478 -1.0% 1,423,589,004 76,596,366 5.7% 3.82 € 0.24 6.8% 2013 4,647,149 35,863,984 0.86 € TOTAL 10,379,878 33.4% 641,265,828 82.0% 1.02 36.4% TOTAL 915.1% 342.1% -56.0% Annual 2.9% 6.2% 3.2% 26.1% 16.0% -8.0% Av. Tax

Canada: Total Portuguese Wine Imports Absolute Relative Absolute Relative Absolute Relative Volume Value Price Share Volume Share Value Var. Var. % Var. Var. % Var. Var. % 2003 639,911 N,D, N.D. 33,723,112 N,D, N.D. 5.86 € N.D. N.D. 2.1% 4.3% 2004 650,352 10,441 1.6% 31,777,699 -1,945,413 -5.8% 5.43 € -0.43 -7.3% 2.2% 3.9% 2005 663,642 13,290 2.0% 29,041,470 -2,736,229 -8.6% 4.86 € -0.57 -10.4% 2.1% 3.4% 2006 701,678 38,036 5.7% 30,649,393 1,607,923 5.5% 4.85 € -0.01 -0.2% 2.1% 3.1% 2007 763,744 62,066 8.8% 32,706,686 2,057,293 6.7% 4.76 € -0.10 -2.0% 2.2% 3.0% 2008 787,540 23,796 3.1% 32,120,992 -585,694 -1.8% 4.53 € -0.23 -4.8% 2.2% 2.8% 2009 865,628 78,088 9.9% 35,094,996 2,974,004 9.3% 4.50 € -0.03 -0.6% 2.4% 3.1% 2010 849,458 -16,170 -1.9% 34,249,257 -845,739 -2.4% 4.48 € -0.02 -0.6% 2.2% 2.9% 2011 890,285 40,827 4.8% 35,101,406 852,149 2.5% 4.38 € -0.10 -2.2% 2.2% 2.7% 2012 912,557 22,272 2.5% 33,550,593 -1,550,813 -4.4% 4.09 € -0.30 -6.8% 2.2% 2.5% 2013 996,090 83,533 9.2% 37,421,889 3,871,296 11.5% 4.17 € 0.09 2.2% 2.4% 2.6% TOTAL 356,179 55.7% 3,698,777 11.0% -1.68 -28.7% Annual 4.5% 1.0% -3.3% Av. Tax Volume in 12 bottle cases, Value in Euros and Prices in Euros/liter. Source: Statistics Canada, STATCAN Database and IVV.

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Canada: Sparkling Imports Absolute Relative Absolute Relative Absolute Relative Volume Value Price Var. Var. % Var. Var. % Var. Var. % 2003 654,941 N,D, N.D. 40,568,661 N,D, N.D. 6.88 € N.D. N.D. 2004 647,970 -6,972 -1.1% 42,944,841 2,376,180 5.9% 7.36 € 0.48 7.0% 2005 702,874 54,904 8.5% 47,880,626 4,935,785 11.5% 7.57 € 0.21 2.8% 2006 785,809 82,935 11.8% 54,406,687 6,526,060 13.6% 7.69 € 0.12 1.6% 2007 867,452 81,643 10.4% 62,511,640 8,104,953 14.9% 8.01 € 0.31 4.1% 2008 900,281 32,830 3.8% 66,938,965 4,427,325 7.1% 8.26 € 0.25 3.2% 2009 974,009 73,728 8.2% 62,091,735 -4,847,229 -7.2% 7.08 € -1.18 -14.3% 2010 1,087,077 113,068 11.6% 74,148,649 12,056,913 19.4% 7.58 € 0.50 7.0% 2011 1,150,542 63,466 5.8% 81,795,140 7,646,491 10.3% 7.90 € 0.32 4.2% 2012 1,274,542 124,000 10.8% 85,117,683 3,322,543 4.1% 7.42 € -0.48 -6.1% 2013 1,291,065 16,523 1.3% 90,450,125 5,332,442 6.3% 7.78 € 0.36 4.9% TOTAL 636,123 97.1% 49,881,464 123.0% 0.90 13.1% Annual 7.0% 8.3% 1.2% Av. Tax

Canada: Portuguese Sparkling Imports Absolute Relative Absolute Relative Absolute Relative Volume Value Price Share Volume Share Value Var. Var. % Var. Var. % Var. Var. % 2003 389 N,D, N.D. 19,963 N,D, N.D. 5.70 € N.D. N.D. 0.06% 0.05% 2004 91 -298 -76.6% 5,523 -14,440 -72.3% 6.75 € 1.05 18.5% 0.01% 0.01% 2005 475 384 422.1% 21,002 15,479 280.2% 4.92 € -1.83 -27.2% 0.07% 0.04% 2006 373 -102 -21.4% 15,589 -5,414 -25.8% 4.64 € -0.27 -5.6% 0.05% 0.03% 2007 752 379 101.5% 41,417 25,828 165.7% 6.12 € 1.48 31.9% 0.09% 0.07% 2008 554 -198 -26.3% 24,321 -17,096 -41.3% 4.88 € -1.24 -20.3% 0.06% 0.04% 2009 496 -57 -10.4% 31,808 7,487 30.8% 7.12 € 2.24 45.9% 0.05% 0.05% 2010 291 -205 -41.4% 12,607 -19,200 -60.4% 4.82 € -2.31 -32.4% 0.03% 0.02% 2011 656 365 125.7% 24,723 12,116 96.1% 4.19 € -0.63 -13.1% 0.06% 0.03% 2012 1,073 416 63.5% 53,605 28,882 116.8% 5.55 € 1.37 32.6% 0.08% 0.06% 2013 1,148 75 7.0% 49,287 -4,318 -8.1% 4.77 € -0.78 -14.1% 0.09% 0.05% TOTAL 759 195.2% 29,324 146.9% -0.93 -16.4% Annual 11.4% 9.5% -1.8% Av. Tax Volume in 12 bottle cases, Value in Euros and Prices in Euros/liter. Source: Statistics Canada, STATCAN Database and IVV.

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Canada: Bottled Wine Imports Absolute Relative Absolute Relative Absolute Relative Volume Value Price Var. Var. % Var. Var. % Var. Var. % 2003 23,573,476 N,D, N.D. 700,821,063 N,D, N.D. 3.30 € N.D. N.D. 2004 20,236,366 -3,337,110 -14.2% 709,312,102 8,491,040 1.2% 3.89 € 0.59 17.9% 2005 21,056,207 819,841 4.1% 757,715,432 48,403,329 6.8% 4.00 € 0.10 2.7% 2006 23,684,034 2,627,827 12.5% 873,774,884 116,059,452 15.3% 4.10 € 0.10 2.5% 2007 25,203,861 1,519,826 6.4% 963,791,855 90,016,971 10.3% 4.25 € 0.15 3.7% 2008 25,236,076 32,215 0.1% 1,012,180,951 48,389,096 5.0% 4.46 € 0.21 4.9% 2009 26,566,553 1,330,477 5.3% 1,019,157,213 6,976,262 0.7% 4.26 € -0.19 -4.4% 2010 28,057,392 1,490,839 5.6% 1,064,021,181 44,863,968 4.4% 4.21 € -0.05 -1.1% 2011 28,371,991 314,599 1.1% 1,149,365,128 85,343,946 8.0% 4.50 € 0.29 6.8% 2012 29,270,055 898,064 3.2% 1,193,067,538 43,702,410 3.8% 4.53 € 0.03 0.6% 2013 29,771,345 501,291 1.7% 1,265,707,649 72,640,111 6.1% 4.72 € 0.19 4.3% TOTAL 6,197,870 26.3% 564,886,586 80.6% 1.42 43.0% Annual 2.4% 6.1% 3.6% Av. Tax

Canada: Portuguese Bottled Wine Imports Absolute Relative Absolute Relative Absolute Relative Volume Value Price Share Volume Share Value Var. Var. % Var. Var. % Var. Var. % 2003 315,628 N,D, N.D. 8,234,329 N,D, N.D. 2.90 € N.D. N.D. 1.3% 1.2% 2004 391,094 75,466 23.9% 7,713,103 -521,226 -6.3% 2.19 € -0.71 -24.4% 1.9% 1.1% 2005 391,691 597 0.2% 8,531,141 818,038 10.6% 2.42 € 0.23 10.4% 1.9% 1.1% 2006 356,214 -35,477 -9.1% 10,914,022 2,382,881 27.9% 3.40 € 0.98 40.7% 1.5% 1.2% 2007 516,384 160,170 45.0% 14,362,453 3,448,431 31.6% 3.09 € -0.31 -9.2% 2.0% 1.5% 2008 572,621 56,237 10.9% 16,981,106 2,618,653 18.2% 3.30 € 0.20 6.6% 2.3% 1.7% 2009 642,636 70,015 12.2% 20,998,083 4,016,977 23.7% 3.63 € 0.34 10.2% 2.4% 2.1% 2010 637,103 -5,533 -0.9% 18,146,800 -2,851,283 -13.6% 3.16 € -0.47 -12.8% 2.3% 1.7% 2011 676,187 39,084 6.1% 19,832,163 1,685,363 9.3% 3.26 € 0.09 3.0% 2.4% 1.7% 2012 712,421 36,234 5.4% 18,754,267 -1,077,897 -5.4% 2.92 € -0.33 -10.2% 2.4% 1.6% 2013 766,488 54,067 7.6% 21,138,321 2,384,054 12.7% 3.06 € 0.14 4.8% 2.6% 1.7% TOTAL 450,860 142.8% 12,903,992 156.7% 0.17 5.7% Annual 9.3% 9.9% 0.6% Av. Tax Volume in 12 bottle cases, Value in Euros and Prices in Euros/liter. Source: Statistics Canada, STATCAN Database and IVV.

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Canada: Bulk Wine Imports Absolute Relative Absolute Relative Absolute Relative Volume Value Price Var. Var. % Var. Var. % Var. Var. % 2003 6,819,484 N,D, N.D. 40,933,452 N,D, N.D. 0.67 € N.D. N.D. 2004 8,768,519 1,949,035 28.6% 52,695,883 11,762,431 28.7% 0.67 € 0.00 0.1% 2005 9,454,757 686,238 7.8% 55,495,974 2,800,091 5.3% 0.65 € -0.02 -2.3% 2006 9,347,073 -107,684 -1.1% 49,941,782 -5,554,191 -10.0% 0.59 € -0.06 -9.0% 2007 8,568,249 -778,824 -8.3% 46,270,777 -3,671,006 -7.4% 0.60 € 0.01 1.1% 2008 9,403,440 835,191 9.7% 54,438,003 8,167,226 17.7% 0.64 € 0.04 7.2% 2009 8,927,814 -475,626 -5.1% 55,367,723 929,720 1.7% 0.69 € 0.05 7.1% 2010 9,751,104 823,290 9.2% 55,884,110 516,387 0.9% 0.64 € -0.05 -7.6% 2011 10,299,145 548,041 5.6% 61,794,479 5,910,369 10.6% 0.67 € 0.03 4.7% 2012 11,322,660 1,023,515 9.9% 68,807,417 7,012,938 11.3% 0.68 € 0.01 1.3% 2013 10,365,369 -957,291 -8.5% 67,431,230 -1,376,187 -2.0% 0.72 € 0.05 7.1% TOTAL 3,545,885 52.0% 26,497,778 64.7% 0.06 8.4% Annual 4.3% 5.1% 0.8% Av. Tax

Canada:Portuguese Bulk Wine Imports Absolute Relative Absolute Relative Absolute Relative Volume Value Price Share Volume Share Value Var. Var. % Var. Var. % Var. Var. % 2003 6,661 N,D, N.D. 63,820 N,D, N.D. 1.06 € N.D. N.D. 0.1% 0.2% 2004 7,789 1,127 16.9% 73,073 9,253 14.5% 1.04 € -0.02 -2.1% 0.1% 0.1% 2005 20,532 12,743 163.6% 164,313 91,240 124.9% 0.89 € -0.15 -14.7% 0.2% 0.3% 2006 11,079 -9,453 -46.0% 85,039 -79,274 -48.2% 0.85 € -0.04 -4.1% 0.1% 0.2% 2007 7,930 -3,149 -28.4% 61,816 -23,223 -27.3% 0.87 € 0.01 1.6% 0.1% 0.1% 2008 9,330 1,400 17.7% 81,491 19,675 31.8% 0.97 € 0.10 12.0% 0.1% 0.1% 2009 28,420 19,090 204.6% 203,083 121,592 149.2% 0.79 € -0.18 -18.2% 0.3% 0.4% 2010 10,467 -17,953 -63.2% 83,305 -119,778 -59.0% 0.88 € 0.09 11.4% 0.1% 0.1% 2011 35,379 24,912 238.0% 398,626 315,321 378.5% 1.25 € 0.37 41.6% 0.3% 0.6% 2012 31,845 -3,534 -10.0% 485,742 87,116 21.9% 1.69 € 0.44 35.4% 0.3% 0.7% 2013 53,351 21,506 67.5% 636,217 150,475 31.0% 1.33 € -0.37 -21.8% 0.5% 0.9% TOTAL 46,690 701.0% 572,396 896.9% 0.26 24.5% Annual 23.1% 25.9% 2.2% Av. Tax Volume in 12 bottle cases, Value in Euros and Prices in Euros/liter. Source: Statistics Canada, STATCAN Database and IVV.

23 v

Annex 2 – Suppliers with market share above 1%, volume and value

Imports Volume, for Suppliers with market share > 1% Imports Value, for Suppliers with market share > 1% Relative Relative 2003 2013 Absolute Var. 2003 2013 Absolute Var. Var. % Var. % Italy 5,532,056 7,717,619 2,185,563 40% France 255,537,854 320,004,281 64,466,428 25% France 9,356,763 6,649,106 -2,707,658 -29% USA 90,919,223 294,023,746 203,104,523 223% USA 4,655,856 6,642,493 1,986,637 43% Italy 148,531,013 283,490,796 134,959,783 91% Australia 4,161,780 5,770,517 1,608,737 39% Australia 128,729,294 153,709,103 24,979,808 19% Chile 2,908,406 3,377,419 469,013 16% Spain 29,925,692 74,843,869 44,918,177 150% Spain 1,072,159 3,138,615 2,066,456 193% Argentina 8,216,229 70,010,810 61,794,581 752% Argentina 436,693 2,750,585 2,313,892 530% Chile 41,785,844 67,720,854 25,935,010 62% South Africa 709,003 2,278,940 1,569,936 221% New Zealand 6,120,839 53,017,089 46,896,250 766% Portugal 639,911 996,090 356,179 56% Portugal 32,723,484 37,421,889 4,698,405 14% New Zealand 184,460 925,057 740,597 401% South Africa 13,170,393 32,462,609 19,292,216 146% Germany 611,132 696,104 84,973 14% Germany 15,374,683 23,624,780 8,251,097 54%

2003 2013 350 2003 2013 10 € 320 294 283

8 7,7 Million 280 6,6 6,6 5,8 6 210

Million Lts.) (9 boxes Million 154 4 3,4 3,1 140 2,8 2,3 75 70 68 2 70 53 1,0 0,9 37 0,7 32 24

0 0

24 v

Annex 3 – Port Wine and price by segment

Canada: Port Wine Imports Absolute Relative Absolute Relative Var. Absolute Relative Volume Value Price Var. Var. % Var. % Var. Var. % 2003 317,233 N,D, N.D. 25,405,000 N,D, N.D. 8.90 € N.D. N.D. 2004 251,378 -65,856 -20.8% 23,986,000 -1,419,000 -5.6% 9.36 € 0.46 5.2% 2005 250,944 -433 -0.2% 20,325,000 -3,661,000 -15.3% 9.00 € -0.36 -3.9% 2006 334,012 83,068 33.1% 19,634,743 -690,257 -3.4% 6.53 € -2.47 -27.4% 2007 238,678 -95,335 -28.5% 18,241,000 -1,393,743 -7.1% 8.49 € 1.96 30.0% 2008 205,035 -33,643 -14.1% 15,034,074 -3,206,926 -17.6% 8.15 € -0.34 -4.1% 2009 194,076 -10,959 -5.3% 13,862,023 -1,172,051 -7.8% 7.94 € -0.21 -2.6% 2010 201,597 7,521 3.9% 16,006,544 2,144,521 15.5% 8.82 € 0.89 11.2% 2011 178,063 -23,534 -11.7% 14,845,893 -1,160,651 -7.3% 9.26 € 0.44 5.0% 2012 167,218 -10,845 -6.1% 14,256,980 -588,913 -4.0% 9.47 € 0.21 2.3% 2013 175,103 7,885 4.7% 15,598,065 1,341,085 9.4% 9.90 € 0.42 4.5% TOTAL -142,130 -44.8% -9,806,935 -38.6% 1.00 11.2% Average -5.8% -4.8% 1.1% Annual Tax Volume in 12 bottle cases, Value in Euros and Prices in Euros/liter. Source: Statistics Canada, STATCAN Database and IVV. Canada: Wines of Portugal average price Total Bottled Portuguese Bottled Portuguese Bottled Port Wine imported by Canada imports with Port imports without Port 2003 3.30 € 5.91 € 2.90 € 8.90 € 2004 3.89 € 5.48 € 2.19 € 10.60 € 2005 4.00 € 4.99 € 2.42 € 9.00 € 2006 4.10 € 4.92 € 3.40 € 6.53 € 2007 4.25 € 4.80 € 3.09 € 8.49 € 2008 4.46 € 4.57 € 3.30 € 8.15 € 2009 4.26 € 4.63 € 3.63 € 7.94 € 2010 4.21 € 4.52 € 3.16 € 8.82 € 2011 4.50 € 4.51 € 3.26 € 9.26 € 2012 4.53 € 4.17 € 2.93 € 9.47 € 2013 4.72 € 4.34 € 3.06 € 9.90 € WoP: Wines of Portugal. Prices calculated only for the bottles segment. Source: Statistics Canada, STATCAN Database and IVV.

Canada: Main suppliers for all segments 2003 2013 Absolute Var. Relative Var. % New Zealand 3.69 € 6.37 € 2.68 73% France 3.03 € 5.35 € 2.32 76% USA 2.17 € 4.91 € 2.74 126% Portugal 5.86 € 4.17 € -1.69 -29% Italy 2.98 € 4.08 € 1.10 37% Germany 2.80 € 3.77 € 0.98 35% Australia 3.44 € 2.96 € -0.48 -14% Argentina 2.09 € 2.83 € 0.74 35% Spain 3.10 € 2.65 € -0.45 -15% Chile 1.60 € 2.23 € 0.63 40% South Africa 2.06 € 1.58 € -0.48 -23% Source: Statistics Canada, STATCAN Database e IVV.

25

Annex 4 – Portugal’s Positioning in Canada’s largest provinces

Alberta Value (Euros) Average Price (Euros/lts.) 2013 Variação 4 anos Quota 2013 Variation 4 years USA 71,100,848 85.4% 33.1% 7.22 € 7.2% Italy 33,196,190 29.9% 15.4% 8.10 € 4.2% Australia 29,307,934 -18.7% 13.6% 6.53 € 4.4% France 21,925,401 28.1% 10.2% 11.67 € 23.5% Argentina 18,363,350 42.3% 8.5% 6.52 € 7.7% New Zealand 13,394,791 81.6% 6.2% 8.18 € -1.2% Chile 8,508,426 -17.7% 4.0% 5.21 € 6.3% Germany 7,053,737 15.6% 3.3% 5.59 € 3.1% Spain 5,896,908 32.0% 2.7% 6.79 € 3.3% Portugal 3,044,045 9.6% 1.4% 10.44 € 6.2%

Québec Value (Euros) Average Price (Euros/lts.) 2013 Variation 4 years Quota 2013 Variation 4 years France 196,200,353 22.3% 37.3% 4.93 € 17.1% Italy 123,283,929 21.3% 23.5% 3.92 € 7.0% USA 52,481,635 3.5% 10.0% 4.56 € 7.5% Spain 41,500,379 43.8% 7.9% 2.61 € 13.3% Australia 30,374,851 -6.8% 5.8% 1.87 € -19.3% Portugal 21,204,481 9.4% 4.0% 3.98 € -12.4% Chile 16,178,704 13.1% 3.1% 2.49 € 12.2% Argentina 14,108,043 -21.5% 2.7% 2.29 € 25.6% New Zealand 10,903,640 65.7% 2.1% 5.17 € 18.6% South Africa 10,138,082 3.7% 1.9% 2.20 € -7.4%

Ontario Value (Euros) Average price (Euros/lts.) 2013 Var. last 4 years Quota 2013 Var. last 4 years USA 117,280,879 88.6% 25.5% 5.11 € 19.6% Italy 98,022,945 13.0% 21.4% 3.91 € 10.1% France 69,759,184 12.2% 15.2% 5.98 € 26.4% Australia 58,193,875 -6.5% 12.7% 3.38 € -11.9% Chile 24,685,370 -1.6% 5.4% 2.20 € 6.1% Argentina 21,794,759 -16.1% 4.7% 2.51 € -5.0% New Zealand 18,066,206 52.5% 3.9% 6.73 € 3.9% Spain 16,645,512 16.2% 3.6% 3.21 € 46.1% Portugal 10,192,045 6.6% 2.2% 3.76 € -3.0% South Africa 11,658,674 -10.3% 2.5% 1.68 € -21.5%

British Columbia Value (Euros) Average Price (Euros/lts.) 2013 Var. last 4 years Quota 2013 Var. last 4 years USA 32,814,139 30.3% 23.7% 3.24 € 68.5% Australia 19,271,029 -27.7% 13.9% 2.08 € 10.5% France 21,790,140 34.6% 15.7% 4.85 € 8.7% Italy 16,654,261 14.6% 12.0% 3.08 € 8.0% Argentina 9,890,611 20.9% 7.1% 1.88 € -25.7% New Zealand 8,322,571 34.8% 6.0% 5.52 € 119.7% Chile 11,254,292 -0.7% 8.1% 1.30 € -6.2% Spain 8,353,095 53.3% 6.0% 1.52 € 5.1% South Africa 5,404,734 55.1% 3.9% 0.75 € -61.6% Portugal 1,942,672 32.1% 1.4% 4.57 € 22.1% Source: Statistics Canada, STATCAN Database.

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Annex 5 – Comparative Matrix between suppliers with market share above 1%, in 2003 and 2013.

€ 8,00 NEW ZEALAND (2003) Share > 2 million boxes

7,00 NEW ZEALAND (2013) Price per liter, per Price FRANCE (2013) 6,00 PORTUGAL (2003) USA (2013) 5,00 GERMANY (2013) PORTUGAL ITALY (2013) (2013) ARGENTINA AUSTRALIA (2003) 4,00 (2013) Average price SPAIN (2013) SPAIN 3,00 (2003) FRANCE (2003) AUSTRALIA (2013) GERMANY 2,00 (2003) CHILE ITALY (2003) (2013) USA (2003) SOUTH AFRICA CHILE (2003) 1,00 (2003) ARGENTINA SOUTH AFRICA (2003) (2013) 0,00 0 2 4 6 8 10 12 Volume in million boxes (9 liters)

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Annex 6 – Taxes on wine on the different monopolies

Segment (alcohol tax) Excise Duty

Canada > 7% alc/vol 0.45 €/liter 1.2% < alc/vol < 7% 0.21 €/liter < 1.2% alc/vol 0.015 €/liter

Provinces/Territories Price markup GST

Alberta 2.910 €/liter 5% British Columbia 123% 5% Manitoba 2.94 €/liter 5% New Brunswick 70% 13% New Foundland and Labrador 8.58 €/liter 13% Nova Scotia 2.45 €/liter 15% 39.6% + 13% provincial tax, if Ontario wine was purchased by 13% authorized restaurants Prince Edward Island 2.45 €/liter 14% 9.975% if tax was divided by Québec 0.65 €/liter GST and QST; 14.975% if there is no distinction Saskatchewan 2.11 €/liter 5% Northwest Territories N.D. 5% Nunavut N.D. 5% Yukon N.D. 5% Note: GST, Goods and Services Tax; QST, Québec Sales Tax. Source: The Canadian Goods and Services Tax, The Canadian Border Services Agency e outros.

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