2017 Annual Report Contents
Total Page:16
File Type:pdf, Size:1020Kb
British Columbia Wine Institute 2017 ANNUAL REPORT CONTENTS 2 A Message from the Chair 4 A Message from the President 5 Vision, Mission, Core Values and Goals 7 Membership Objectives, Evaluations and Highlights 12 Marketing Objectives, Evaluations and Highlights 20 Tourism Objective, Evaluation and Highlights 22 International Markets Objectives, Evaluations and Highlights 24 Media Objectives, Evaluations and Highlights 30 Communications Objectives, Evaluations and Highlights 32 Government Advocacy Objectives, Evaluations and Highlights 35 2016 Vintage Report 39 Category Update 41 BCWI Structure 43 BCWI Staff 45 BCWI Member Wineries 47 BC VQA Wine Stores A MESSAGE FROM THE CHAIR It is my pleasure to present the British Columbia Wine start or expand export have the opportunities to do so. Institute Fiscal 2017 Annual Report. The Wines of British The BCWI Asian Markets Symposium in August introduced Columbia represent the diversity, passion, and vision of our members to Debra Meiburg MW who provided valuable wineries and our wine regions evidenced by the data in this insight on the Asian wine markets identified in the 2014- report. 2018 Red & White International Export Strategy for Canadian Wine and the BCWI Fiscal 2017 Strategic Plan. Consider that the BC wine industry now has a $2.8 billion impact on our provincial economy. Our industry is Here at home, BC VQA Wine sales continued to grow. BC creating 12,000 jobs every year – 20% more than when VQA provincial market share reached 17.6% (R12 ended last reported in 2013. We are responsible for generating March 2017) – its highest share yet, and BC winery direct tax revenues of $312 million – revenue that goes to pay sales were up 13.6% over the previous rolling 12 months for hospitals, schools, and roads. Roads which, of course, ended 2016 P12 (March 2016). are important to get our product to our customers, or customers to our product as we now receive more than one On behalf of the BCWI Board of Directors, thank you to our million wine touring visitors every year. members who contribute their time and energy participating on our various committees and task groups. And on behalf The BC Wine Institute is pleased to see the continued of our members, thank you to our Board of Directors who implementation of the recommendations of the province’s work tirelessly to ensure our members’ needs are met. It is Liquor Policy Review. With 90% of the recommendations through everyone’s work that we continue to meet or exceed implemented, our winery members are now able to offer the objectives of the BC Wine Institute. Together, we are visitors liquor other than what is produced on-site. It allows making a positive difference. BC winery restaurants to offer wines without the necessity of the patron needing to order food, or to offer a licensed patio even if the winery has no interior licensed area. BC VQA Wine stores in grocery and the sale of wine at farmers’ markets are helping us reach a broader base of consumers. These changes offer consumers choice, and choice is what they continue to seek – a way to expand their horizons Christa-Lee McWatters Bond, Chair in wine style and selection as well as the entire wine experience. As we continue working toward eliminating all inter- provincial trade barriers for Canadian wine, we are also working to help our member wineries expand their international exports. Last summer, the BCWI surveyed our members to establish benchmarks and gather data on export so that we can ensure those wineries wanting to BRITISH COLUMBIA WINE INSTITUTE 2017 ANNUAL REPORT 2 A MESSAGE FROM THE PRESIDENT This past year set a benchmark for the BC wine industry as In the end, it was consumers - by whom the wine industry indicated in the recent Canadian wine and grape industry survives - who determined through their wallets if research study that reveals the economic impact of the changes made sense and our Government delivered on the Canadian wine industry is up 33% to an astounding $9 convenience and choice they asked for. billion. Clearly, our consumers have spoken. Provincial BC VQA Such success should not be a huge surprise to 100% BC (certified 100% BC wine) market share has grown by wine lovers in this province where the industry now has a 355,000 cases and a record high 17.6%; BC Liquor Stores $2.8 billion economic impact and is a significant driver of sales are up by 110,000 cases; restaurants up by 48,000 the BC economy. cases and private liquor retailers - arguably the group most concerned about greater consumer access to BC wine - up What is even more impressive is that most BC wineries are by 31% or 72,000 cases. small, family-owned agri-businesses (farmers) that are creating jobs along with business and tax revenue making up I want to acknowledge BCWI staff, Directors, committee the $2.8 billion impact. In fact, for every bottle of 100% BC members, winery members, and grapegrower partners wine sold in British Columbia, $95.34 in economic activity is for their continued support in bringing about these policy generated across the province (bottle of import wine creates changes and steps to reduce red tape and modernize $16.61) - 100% BC wine is almost six times more impactful provincial liquor laws. than import wine. During one of British Columbia’s most broadly-engaged public consultations in its history, British Columbians, including consumer, labour, health, and industry advocates, Miles Prodan, President/CEO added their voices to the comprehensive BC Liquor Policy Review and resulting report, with recommendations on how to improve the way we serve, retail, and consume alcohol in BC. The BC Liquor Policy Review made 73 recommendations to modernize BC’s liquor laws and bring convenience, choice, and selection to consumers. These changes support BC’s wineries, the tourism and hospitality industry, and private liquor retailers. BRITISH COLUMBIA WINE INSTITUTE 2017 ANNUAL REPORT 4 FISCAL 2017 BC WINE INSTITUTE OUR VISIONARY GOALS VISION, MISSION, CORE VALUES AND GOALS Our visionary goals are a broader expression of how we will achieve our vision and mission. • We provide leadership as the voice of and on behalf • We support and grow BC VQA as the preferred wine of all licensed wineries to all industry participants, choice of consumers through educating stakeholders OUR VISION government, trade, media, consumers, and other that Wines of British Columbia is the best, super stakeholders in BC, across Canada and around the world. premium wine brand in the world. We work to improve the regulatory climate for industry. “Wines of British Columbia are recognized across the • We reinforce the premium position of the BC VQA world as the best, super premium wines.” • Wineries of British Columbia are knowledgeable Wine standard and the Wines of British Columbia brand about the role and purpose of BC Wine Institute in through our marketing initiatives as well as leveraging contributing to the success of their businesses. We key partners for collaborative promotion of the Wines have clear, transparent processes for responding to of British Columbia. matters and issues that have the potential to impact BC OUR MISSION OUR CORE VALUES Wine Institute and the BC wine industry. • We will develop annual marketing plans to create demand for current and future grape production and to Our mission is to champion the Quality, leadership, dedication, and • Our membership will represent the majority of promote British Columbia as a wine touring destination. interests of the British Columbia passion are reflected in all the work production and wineries in BC and our members are We will ensure our resources achieve measurable Wine Industry, through marketing, we do. knowledgeable about the role and responsibilities of objectives and return on investment. communications and advocacy of the Board of Directors and President/CEO in working its products and experiences to all on behalf of the BC wine industry. stakeholders. LEADERSHIP Collaboration; association; cooperation LEADERSHIP PRODUCT IDENTITY Reputation; authenticity; credibility; PRODUCT IDENTITY origin; appellation; terroir; standards COMMUNICATION COMMUNICATION Messaging; marketing; advocacy 5 BRITISH COLUMBIA WINE INSTITUTE 2017 ANNUAL REPORT BRITISH COLUMBIA WINE INSTITUTE 2017 ANNUAL REPORT 6 MEMBERSHIP OBJECTIVES, MEMBERSHIP HIGHLIGHTS EVALUATIONS & HIGHLIGHTS BC Wine Institute membership grew 7% to 162 winery members. BCWI Membership Growth Growth in BC Winery Licences TOTAL WINERIES (REPORT OF LITRE SALES) 8% 400 OBJECTIVE 7% 350 132 151 162 347 6% 300 Membership will be BC-inclusive and represent no less 318 than 95% of total grape wine sales in BC and 94% of total 5% 250 275 Large >700,000 3 255 BC VQA Wine sales in BC, 75% of active (i.e. selling more 4% 200 Medium 60,000 to 699,999 40 than 5,000 litres of 100% BC grape wine in BC) licensed 137 3% 150 Small >5,000 147 162 wineries and a strong representation of BC grapegrowers. 141 151 2% 100 Small <5,000 95 113 104 N/A 65 Evaluation 1% 50 67 52 0 0 2013 2014 2015 2016 2017 Total Winery Grape Non-Grape Non-BCWI Grape BCWI Winery • 100% of membership is BC-inclusive. Licences Wineries Wineries Wineries Members • Membership represents 94.2% of total grape wine OBJECTIVE sales (at end of calendar 2016). New winery members in Fiscal 2017 Members recognize, appreciate and value their membership • 8th Generation Vineyard • Membership represents 93.9% of BC VQA wine sales in the BC Wine Institute, with 80% indicating the BC Wine • Bordertown Vineyard & Estate Winery (at end of calendar 2016) Institute meets their expectations. • Camelot Vineyards • Membership represents 66.5% of active licensed Evaluation • Crescent Hill Winery wineries. Of the nearly 200 wineries that are not BCWI • Elephant Island Winery members, only 36 are BC Wine Authority (BCWA) Member wineries surveyed May 2017; results not available • Estate Thurn members, and 60 are non-grape winery licences.